Minister Şimşek's 'World Bank' announcement: $1.5 billion in funding!

Minister of Treasury and Finance Mehmet Şimşek made evaluations regarding Turkey's external resource inflows.

Stating that they continue to provide resources to institutions in the country within the scope of project financing from external financial organizations, Şimşek recalled that a memorandum of understanding was recently signed for 500 million euros in support as part of the 1.5 billion euro financing package announced by the European Bank for Reconstruction and Development (EBRD) for the earthquake zone.

"WILL BE USED FOR GREEN TRANSITION"

Providing information that support has also been secured from the World Bank for 3 projects following the EBRD, Şimşek said the following:

"The confidence in Turkey's economic roadmap has ensured that the flow of external resources continues at full speed this year as well. Within the scope of the productive cooperation we have been conducting with the World Bank, we have secured $1.5 billion for the financing of 3 separate projects. The resources in question will be used for the purposes of ensuring Turkey's energy supply security and supporting the green transition process of businesses."

"APPROVED BY THE BOARD OF EXECUTIVE DIRECTORS"

Pointing out that the 3 projects, for which financing will be provided by the World Bank, totaling approximately $1.5 billion, have been approved by the Bank's Board of Executive Directors, Şimşek provided information regarding the projects in question.

In this context, stating that approximately $697 million in resources will be provided to the Development and Investment Bank of Turkey (TKYB) and the Industrial Development Bank of Turkey (TSKB) within the scope of the "Turkey Distributed Energy Market Transition Acceleration Project," which will be carried out by TKYB and TSKB, Şimşek said, "With the project, investments by companies in solar panels and electricity storage systems via batteries will be supported. Thus, the economic scale to be created is expected to exceed $1 billion."

Noting that renewable energy investments will be encouraged and Turkey's energy supply security will be supported in this way, Şimşek said, "Secondly, a loan of approximately $400 million will be provided for the 'Turkey Socially Inclusive Green Transition Project,' which will be carried out by the Ministry of Industry and Technology through development agencies. The project aims to support sectors expected to be negatively affected by the green transition."

"$416 MILLION LOAN WILL BE PROVIDED"

Minister Şimşek finally announced that a loan of approximately $416.7 million, consisting of 200 million euros and $200 million, will be provided to TKYB for the "Turkey Industrial Emission Reduction Project," which will be carried out by TKYB.

Şimşek noted the following:

"With the project, SMEs will be provided with financing under favorable conditions to support their transition to greener production systems. We are determinedly continuing our strong cooperation with the World Bank to realize the necessary energy transformation in line with our country's 2053 net-zero emission and green development goals, to increase the use of renewable energy sources, and to ensure an inclusive green transition. While observing the current account balance, we will continue to direct our resources to more productive and efficient areas."

On the other hand, Şimşek stated that the amount of external resources provided to various sectors in Turkey by international organizations, government agencies, export credit agencies, and commercial creditors reached $8.8 billion last year.