Türkiye and the World Bank inked a financing deal of $1.9 billion (TL 66 billion) for four significant projects ranging from green transition to the reconstruction of the industrial sites in the earthquake-damaged area in the country’s southeast, Anadolu Agency (AA) reported Wednesday.
The agreement for financing was signed during Treasury and Finance Minister Mehmet Şimşek’s visit to Washington, where he is to attend G-20, International Monetary Fund (IMF) and World Bank meetings this week.
It covers the financing for projects on energy efficiency, flood and drought risk management, green transition and reconstruction of industrial sites in the earthquake-stricken zone of southeastern Türkiye.
The projects will be carried out by their respective Turkish ministries. They will aim to improve energy efficiency in public buildings and disaster resilience, give support to those negatively affected by the green transition, and ensure sustainability for micro, small and medium-sized enterprises in the earthquake-stricken zone.
Şimşek told AA that the World Bank significantly increased the funding allocated to Türkiye immediately after the announcement of the Medium-Term Program (MTP) last year and added another $18 billion to the ongoing $17 billion program, which is expected to be provided in three years, with the total financing amount to reach $35 billion.
“These projects strongly reaffirm the World Bank’s confidence in our economic program, and the bank’s efforts to increase the total package continue as the lender considers our development priorities,” he said.
Şimşek arrived in the U.S. on Tuesday and had several bilateral meetings on the first day of the planned contacts this week.
Turkish authorities moved on with the implementation of tighter monetary and fiscal policy following presidential and parliamentary elections last year by launching a comprehensive policy set to address past macroeconomic imbalances, especially inflation.
The Turkish central bank lifted its key rate by 4,150 basis points from last June through March to contain elevated inflation, which, as a result, in September, dropped below its policy rate for the first time since 2021.
The World Bank announced several deals to support projects in Türkiye, particularly focusing on green energy, post-earthquake recovery and climate-related initiatives, such as boosting resilience and strengthening the country’s capability to fight forest fires.
