The Treasury and Finance Ministry stated on Monday that it has signed a memorandum of understanding (MoU) with the Asian Infrastructure Investment Bank (AIIB) for $5 billion in financing for public sector initiatives in three years.
“The financing of approximately $5 billion that the AIIB envisages providing for public projects in our country in the next three years (2025-2027) was concretized with the Memorandum of Understanding signed today at the meeting held in Al-Ula between the Minister of Treasury and Finance, Mr. Mehmet Şimşek, and the President of the AIIB, Mr. Jin Liqun,” the ministry stated in a written assertion.
“With this Memorandum of Understanding, a multi-year framework was established with the AIIB for the first time, and our cooperation was further strengthened,” it added.
The deal is geared toward funding sustainability and inexperienced improvement initiatives within the nation and supporting initiatives in vitality, transportation, export financing, well being, and water administration sectors, amongst others.
In addition to the financing to be offered to the general public sector, it’s envisaged that an extra $5 billion in financing will probably be offered for personal sector initiatives sooner or later, the ministry additionally stated.
“Thus, while the diversity of resources for our real sector and exporters increases, favorable conditional financing will be provided for infrastructure and superstructure projects in different sectors and regions,” it famous.
Furthermore, it stated that Türkiye has grow to be “a preferred development partner” because of the robust cooperation and efficient undertaking finance administration carried out by the ministry with the multilateral improvement banks. “Our active portfolio size in these institutions has reached $35 billion by the end of 2024, and this success is an important indicator of the confidence in our economic program,” the assertion learn.
AIIB is a 110-member worldwide monetary establishment headquartered in Beijing. 75% of its complete capital is distributed to regional members and 25% to non-regional members.
“Our country has a capital of $2.6 billion and a voting power of 2.5% and is the bank’s 10th largest shareholder. It ranks seventh among regional countries,” the ministry highlighted in its assertion.
“Since 2018, AIIB has provided a total of $5.5 billion in financing to our country, and our country is the second country that benefits the most from the bank’s financing after India,” it concluded.
Source: www.dailysabah.com