Islamic Development Bank to provide $6.3 billion in loans to Turkey

The Islamic Development Bank (IsDB) Group will provide $6.3 billion in loans to Turkey for the 2024-2026 period.

Treasury and Finance Minister Mehmet Şimşek stated, "The financing to be provided will be used to support activities in many sectors such as education, health, transportation, finance, agriculture, industry, energy, and infrastructure."

Şimşek made assessments regarding his contacts in Riyadh.

Stating that he attended the two-day "Annual Meetings" in Riyadh on the occasion of the 50th anniversary of the IsDB's establishment, Şimşek said that the Country Strategy, which regulates the IsDB Group's activities in Turkey for the 2024-2026 period, was adopted within the scope of the meetings.

Şimşek stated that they signed the framework program under the strategy with IsDB President Muhammad Sulaiman Al-Jasser and said, "With this strategy, the IsDB plans to provide $6.3 billion in financing for projects in our country. Thanks to the economic program we have implemented, the flow of external resources to Turkey continues strongly."

“IN LINE WITH OUR DEVELOPMENT PRIORITIES”

Emphasizing that the strategy in question is in line with the development priorities included in Turkey's 12th Development Plan and the Medium-Term Program, Şimşek continued as follows:

"The financing to be provided under the strategy will be used to support activities in many sectors such as education, health, transportation, finance, agriculture, industry, energy, and infrastructure. The strategy covers all institutions within the IsDB Group, including the IsDB, the Islamic Development Bank (IsDB), the International Islamic Trade Finance Corporation (ITFC), the Islamic Corporation for the Development of the Private Sector (ICD), and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). It is envisaged that $2 billion of the $6.3 billion amount will be provided by the IsDB, $900 million by the ITFC, $300 million by the ICD, and $3.1 billion by the ICIEC."

Pointing out that the IsDB Group has provided $12.9 billion in financing to Turkey since its establishment, Şimşek reported that Turkey ranks 4th among countries using concessional loans from the bank. Şimşek stated that approximately $800 million in financing was approved for the country by the IsDB Group during the 2021-2023 period.

WORLD BANK ALSO ANNOUNCED FINANCING

On the other hand, the World Bank had also decided to increase the amount of resources it transfers to Turkey to $35 billion by adding another $18 billion to the ongoing $17 billion program following the announcement of the Medium-Term Program.

The Country Partnership Framework Program, under which the Bank will provide an additional $18 billion in financing to Turkey within the first 3 years, was recently discussed and put into effect by the Bank's Board of Executive Directors.