Türkiye acquired a file of two.6 billion euros (practically $2.7 billion) in 2024 from the European Bank for Reconstruction and Development (EBRD), solidifying its place as the highest receiver of funding for 5 years in a row.
The EBRD’s investments in Türkiye in 2024 elevated by 4% in comparison with the earlier yr to 2.6 billion euros and was recorded as the very best funding on an annual foundation, in comparison with 2.5 billion euros in 2023 and 1.6 billion euros in 2022, in keeping with the financial institution on Thursday.
The financial institution’s file funding final yr was pushed by the non-public sector’s urge for food for inexperienced transition and the financial institution’s ongoing help program for areas affected by the devastating February 2023 earthquake.
The financial institution invested in 51 totally different tasks within the nation, with 93% of all funding going to the non-public sector.
Projects in Türkiye accounted for about 16% of the financial institution’s complete funding of 16.6 billion euros within the nations the place it operated in 2024. For the fifth yr in a row, Türkiye acquired the biggest quantity of funding of any of the financial institution’s investee economies. Türkiye was adopted by Ukraine and Egypt.
The financial institution earlier this month disclosed that it achieved a brand new file in annual financing final yr, pushed by Türkiye and Ukraine, however it didn’t present on the time the precise determine associated to the tasks in Türkiye final yr.
Green funding tasks loved robust momentum, the financial institution mentioned, accounting for 60% of the two.6 billion euros funding.
The financial institution allotted a good portion of the 1.5 billion euro help program introduced final yr for the earthquake zone to infrastructure tasks within the affected areas.
The financial institution’s cumulative funding in Türkiye surpassed the 20 billion euro mark in 2024, reaching over 22 billion euros by the top of the yr, it mentioned.
There was additionally a change to the financial institution’s management within the nation final yr, with Elisabetta Falcetti taking on the Managing Director place from Arvid Tuerkner, who moved on to develop into Managing Director for Ukraine and Moldova. Falcetti is now the Bank’s Managing Director for Türkiye and Caucasus.
Green transformation tasks
Falcetti, EBRD Türkiye Managing Director, advised Anadolu Agency (AA) that it’s important that roughly 60% of investments in Türkiye are directed towards inexperienced transformation tasks, together with renewable power, sustainable agriculture and useful resource effectivity. This highlights the dedication of each the private and non-private sectors to speed up the transformation.
“For our record numbers in 2024, I must mention our earthquake response. We have already made available most of our 1.5 billion euro initial package and continue to finance projects that seek to work toward reconstruction in the region. Just this past year, we made available financing for companies in the region, announced supply chain finance programs aiming to support the region’s SMEs, and supported projects that seek to respond to the region’s need for critical services like clean water,” Falcetti mentioned.
“A key factor in our success in Türkiye is the resilience and dynamism of the private sector. Their adaptability and expertise in navigating challenging conditions have fostered productive partnerships, driving impactful investments. We are confident in building on this success as we look ahead to 2025,” she mentioned.
EBRD has been working in Türkiye for practically 15 years and has developed efficient cooperation with private and non-private sector actors, Falcetti mentioned.
In the assertion on Thursday, the financial institution recalled that in 2024, it additionally spearheaded collaboration with the Ministry of Industry and Technology on the launch of the Türkiye Industrial Decarbonisation Investment Platform (TIDIP), an initiative additionally supported by the World Bank Group and International Finance Corporation (IFC). It mentioned that the platform goals to deploy $5 billion in funding by 2030.
The financial institution additionally talked about different initiatives it supported, together with renewables, a $200 million syndicated mortgage to considered one of Türkiye’s largest low cost retailers and infrastructure-related tasks.
“The EBRD is here for the long haul. The most important thing for us to have a long-lasting investment outlook is a stable investment climate,” Falcetti mentioned.
“Therefore, we monitor economic developments in the country very closely. So far, we are pleased to see a turnaround in investor confidence in Türkiye. We welcome the recent steps towards orthodoxy in economic policy and believe that with the right structural reforms, there can be potential for further improvement,” she added.
“What matters to us is that economic stability continues, and the autonomy of monetary authorities continues to strengthen. With this in mind, we hope to continue supporting Türkiye on its journey to becoming a greener, more inclusive, competitive and integrated economy.”
Source: www.dailysabah.com