The European Bank for Reconstruction and Development (EBRD) has committed to providing 500 million euros ($543 million) in financing to aid regions in southern Türkiye that were ravaged by last year's catastrophic earthquakes.
This initiative comes as part of a collaborative agreement inked with the Turkish Treasury and Finance Ministry.
The EBRD is a key investor in Türkiye, having invested more than 19 billion euros in 439 projects and trade facilitation lines since 2009.
In the wake of the Feb. 6 earthquakes, the EBRD swiftly stepped in as one of the primary international financial institutions offering assistance. With this latest commitment, the bank reaffirms its dedication to supporting the recovery efforts in the earthquake-stricken areas.
800M euros for private sector and SME support
Earlier, the EBRD disclosed a comprehensive 1.5 billion euro financing package for public and private sector initiatives to reconstruct the affected region.
This comprehensive plan allocated 800 million euros to facilitate private sector projects, aid small- and medium-sized enterprises (SMEs), and bolster local banks operating within the earthquake zone.
The devastating earthquakes that struck on Feb. 6, 2023, rocked 11 Turkish provinces, resulting in significant loss of life and widespread destruction.
The signing of the new pact between the EBRD and Turkish Treasury and Finance Minister Mehmet Simsek was marked by a meeting attended by an EBRD delegation led by its First Vice President Jurgen Rigterink.
The ministry announced the agreement on Tuesday, underscoring the collaborative efforts between the two entities in addressing the pressing needs of the affected regions.
The financing support pledged by the EBRD is slated to be channeled toward local municipalities, specifically targeting sectors critical for the region's recovery, including water infrastructure, sewage systems, solid waste management, and transportation networks.
It is anticipated that this support will be disbursed over the course of 2024 and 2025, providing crucial financial backing as the affected areas endeavor to rebuild and restore essential services.
