Turkish Investment Fund nears completion with $700M boost for OTS members

The establishment of the Turkish Investment Fund, aimed at supporting investments among member countries of the Organization of Turkic States (OTS), is nearing completion.

With the participation of the Turkish Republic of Northern Cyprus (TRNC) and Hungary, both observer members of the organization, the fund’s capital is expected to increase to $700 million.

A significant step toward the realization of the Turkish Investment Fund was taken with the approval of the “Law Proposal on the Approval of the Host Country Agreement Between the Government of the Republic of Türkiye and the Turkish Investment Fund” by the Foreign Affairs Committee of the Turkish Grand National Assembly.

For the fund, which will support investments among OTS member countries, to become operational, the proposal needs to be swiftly approved by Parliament. The fund will initially have a registered capital of $500 million. It will provide financing to small and medium-sized enterprises in member countries, facilitate the expansion of production capacity, strengthen digital infrastructure, offer joint financing support with national and international institutions, and support development projects in various sectors. Established as an international development bank, the fund will become a prominent institution supporting the unity of the Turkic world once it becomes operational.

The fund, serving the common interests of the Turkic world, will also support entrepreneurs in Türkiye. Observer members of the OTS are also interested in joining the fund. Deputy Minister of Foreign Affairs Burhanettin Duran emphasized that the OTS has five members and three observer members, each contributing $100 million to the fund. Duran stated, “Hungary is an observer member but wants to join the fund. With its participation, the fund’s capital will rise to $600 million, with $70 million paid in and $30 million in callable capital.”

Highlighting Türkiye’s significant regard for the TRNC’s position within the OTS, Duran noted that the TRNC, as an observer member, can join the fund without any preconditions or approvals. However, the TRNC needs to make a $100 million payment to benefit from the fund’s investments.

Kerem Durmaz, director general of Foreign Economic Relations at the Ministry of Treasury and Finance, stated that the fund holds the status of an international organization. Durmaz mentioned that while the fund could potentially invest in other countries, its primary goal, as established by the Board of Governors (the upper board), is to facilitate investment among member countries.

Tweet: Turkish Investment Fund, with a $700M capital, nears to launch to support investments and boost economies among Turkic States