Türkiye, World Bank launch 5-year economic collaboration with $18B funding

In a powerful alliance set to shape the next half-decade,Treasury and Finance Minister Mehmet Simsek announced the formulation of a comprehensive financial cooperation program for the upcoming five years in collaboration with the World Bank.

Highlighting the significance of the partnership, Simsek stated: "The Country Partnership Framework (CPF) Program, which will provide an additional $18 billion in financing to our country within the first 3 years, has been put into effect following deliberations at the Bank's Executive Directors Board."

Reiterating recent financial endeavors, Simsek recalled the procurement of $1.5 billion for 3 separate projects from the World Bank, emphasizing their allocation towards ensuring Türkiye's energy security and supporting businesses' green transition.

Expounding on the World Bank's commitment, Simsek noted: "Following the announcement of the Medium-Term Program, the Bank has decided to increase its funding to Türkiye from the ongoing $17 billion program by an additional $18 billion, ranking Türkiye as the third-largest recipient of concessional credit from the Bank globally, and the foremost in its region."

Addressing the alignment with Türkiye's 12th Development Plan, Simsek underscored the program's focus on enhancing productivity, inclusive services, employment and resilience.

Simsek further elaborated on the diverse areas slated for World Bank support, spanning from disaster resilience to export promotion, with a concerted effort aimed at fostering private sector participation and achieving comprehensive outcomes.

World Bank to provide $18 billion to Türkiye

Moreover, outlining the financial framework, Simsek delineated, "Under the Country Partnership Framework Program, the World Bank is expected to provide $18 billion in additional financing to Türkiye over the next three years, with $6 billion anticipated from IBRD, $9 billion from IFC, and $3 billion from MIGA, primarily aimed at bolstering the private sector."

Emphasizing continuity in technical and analytical endeavors, Simsek affirmed the continuation of macro and sectoral studies by the World Bank in the new program cycle, alongside exploring avenues for new partnerships with other development stakeholders to support Türkiye's development goals.

In conclusion, Simsek remarked: "For over 70 years, the World Bank has been a vital partner in Türkiye's development journey. The new Country Partnership Framework further solidifies our collaboration. This partnership underscores the confidence the World Bank has in our economy and investment program for the next five years, ensuring a continued flow of resources to our country in the upcoming period."

Source: Newsroom