Special investment statement for Turkey from IFC Director Schloemer

Wiebke Schloemer, International Finance Corporation (IFC) Regional Director for Turkey and Central Asia, made assessments regarding their investments in Turkey. Stating that they have increased their investments in Turkey over the last 2 years to support the private sector in an environment of macroeconomic fluctuations, Schloemer noted that the IFC committed nearly 3 billion dollars of its 20 billion dollar investment in Turkey over the last 10 years between July 2022 and June 2023.

AIMING TO SUPPORT THE MANUFACTURING SECTOR

Schloemer explained that for 2 years they have been striving to improve financial access for underserved segments such as women entrepreneurs and small businesses, and that they aim to scale sustainable and critical infrastructure investments, support Turkey's manufacturing sector, particularly through export-oriented production companies and projects, increase access to finance for underserved segments, and support trade and exports.

THEY WILL PROVIDE DIRECT LOANS

Schloemer said that in addition to the 17 billion dollar programs implemented by the World Bank Group in Turkey, they will provide 18 billion dollars in direct loans to the private sector over the next 3 years.

Schloemer said, "This means a temporary financial package of approximately 35 billion dollars. This package represents a major expansion in our Turkey program and responds to the strong determination shown by the administration to restore macroeconomic stability. We also plan to deepen our involvement in other areas such as the export sector" she said.

Stating that the International Bank for Reconstruction and Development (IBRD) approved 1 billion dollars in financing in June 2023 to help repair rural homes and essential public services for people in earthquake-affected regions, Schloemer underlined that 11 provinces, where approximately 14 million people live and which were most damaged by the earthquake, will benefit from the project.

Schloemer said, "In parallel, we have worked to secure private sector financing for both early relief and long-term reconstruction efforts. Following the earthquakes, we have committed to providing approximately 1 billion dollars over the next 2 years to support relief and reconstruction efforts in the region through our private sector partners in the finance, manufacturing, and infrastructure sectors," she said.

THEY WILL PROVIDE AID TO THE EARTHQUAKE REGION THROUGH TURKISH BANKS

Schloemer said that their priorities include not only helping to rebuild areas destroyed by the earthquake but also supporting households affected by the earthquake through Turkish banks.

Schloemer stated, "Many people in these regions cannot repay their loans. Furthermore, we are working with local banks to mitigate the impact on the financial sector by meeting short-term liquidity needs, and we are examining the feasibility of utilizing capital market instruments to support long-term reconstruction efforts," she said.

Mentioning the approximately 680 million dollar financing package they provided to small and medium-sized enterprises in the region and a leading manufacturing company, Schloemer concluded her words as follows:

"We announced a financing package of up to 530 million dollars to be channeled through 5 private banks in Turkey. As the IFC, we aim to support banks by providing liquidity to help them lend in earthquake-affected provinces. We provided a financing package of 71 million dollars to Akbank, 119.5 million dollars to DenizBank, 109.5 million dollars to QNB Finansbank, 150 million dollars to Türkiye İş Bankası, and 80 million dollars to Yapı Kredi among the 5 banks. The financing package also includes 220 million dollars in funding provided by 5 separate international financial and development institutions. In addition to this, we provided a 150 million dollar green loan to Sanko Holding"