The European Bank for Reconstruction and Development (EBRD) invested a record 2023 billion Euros in Turkey in 2,48. This investment was supported by the Bank's rapid response to the country's recovery and reconstruction needs following the earthquakes in February.
Turkey also achieved the highest investment volume among the economies in which the Bank invested in 2023. EBRD invested 2022 billion Euros in the country in 1,63, while it invested 2021 billion Euros in 2.
In a challenging year for Turkey, the EBRD remained committed to supporting the development and green transformation of the country's private sector, especially after the earthquakes that hit the southeastern region in February, causing widespread damage and killing more than 55.000 people.
In the weeks after the disaster, the EBRD announced a multi-year €1,5 billion investment plan for the affected region, aimed at supporting the recovery, reconstruction and reintegration of the regional economy. In addition to the €600 million Disaster Response Framework implemented through local partner banks to expand financial opportunities for affected businesses and individuals, the plan also includes infrastructure investments and private sector support for small and medium-sized enterprises (SMEs).
More than €800 million has already been transferred to companies and individuals in the region as part of the earthquake response plan. These funds constituted more than 2023 percent of the Bank's investments in Turkey in 30. In addition to the expenditures of approximately EUR 400 million provided within the scope of the Disaster Response Framework through İş Bankası, DenizBank, Akbank, QNB Finansbank and Yapı Kredi, other important EBRD investments were also made. Loans in the affected area include a €100 million loan to electricity distribution company Enerjisa Enerji, a €75 million loan to polyester producer SASA Polyester Sanayi, and a €25 million loan to energy company Mav Elektrik.
The bank also announced a Reconstruction Assistance and Grant program to help SMEs operating in the earthquake-affected area rebuild damaged buildings, production assets and infrastructure. The program includes financial support from the Ministry of Finance of Japan.
EBRD Turkey General Manager Arvid Tuerkner said: “Considering the magnitude of the damage caused by the February earthquakes, 2023 was a very difficult year for Turkey and its population. The EBRD remained committed to the country and, in addition to maintaining its usual priorities, was quick to implement a comprehensive earthquake response plan aimed at preserving jobs, livelihoods and human capital in the affected area. More needs to be done, and the Bank is ready to continue contributing to restructuring efforts and the Turkish economy in the coming years.”
A growing green and inclusive agenda in Turkey
Mr. Tuerkner noted that the Bank's green and economic participation initiatives in Turkey also accelerated the 2023 record figures.
“It was also an important year for green and gender-related projects in the country,” she said. “The EBRD has been and will continue to be an important supporter of Turkey's journey towards a greener, more resilient and more inclusive economy.”
Last year, the bank financed 48 projects in Turkey; 91 percent of the investments went to the country's private sector, and almost 58 percent contributed to the transition to a green economy. Sixty percent of projects included gender components.
Some of the highlights of green and inclusive investments include the €100 million financing package for ING Turkey and ING Leasing to increase access to green finance; a €90 million loan to tire manufacturer Brisa Bridgestone to help finance the production of fuel-efficient and low-carbon emission products; 70 million Euro loan to TürkTraktör to support the modernization of the company's production facilities and further green investments; 75 million Euro sustainability-related loan to Ülker Biskuvi; and a $200 million loan to Borusan EnBW under a syndicated structure with the Dutch Entrepreneur Development Bank FMO.
In 2023, EBRD, together with Citi, launched a sustainable supply chain financing program to support Finnish technology and service provider Metso Outotec and its suppliers in Turkey.
EBRD also continues to expand its municipal partnerships, including Bursa, one of Turkey's largest cities, in its Green Cities program. Bursa became the fifth Turkish city to participate in the Bank's program and the 60th overall. Other Green Cities Istanbul and Gaziantep also celebrated important milestones in 2023; the first launched the Green City Action Plan and the second completed its plan.
EBRD successfully used a donation fund of €41,5 million in Turkey in 2023, the majority of which came from the Small Business Impact Fund, the Climate Investment Fund and Turkey.
The EBRD is one of the key investors in Turkey, having invested more than €2009 billion in 439 projects and trade facilitation pipelines since 19, 93 percent of which has been channeled to the private sector.