Türkiye’s $2.5B funding milestone paves way for new projects

Treasury and Finance Minister Mehmet Simsek announced significant progress in securing international funding. In a recent statement, he emphasized the country’s growing cooperation with global financial institutions, aiming to obtain vital resources to support economic initiatives and development projects.

Simsek stated that they are at the final stage for securing $2.5 billion in foreign financing. “Our work with international financial institutions is turning into concrete steps. Development-oriented projects are supported with favorable financing, long-term and below-market interest rates, and confidence in the program continues to increase,” he said.

$2.9B in financing secured this year

Simsek reported that Türkiye has secured approximately $2.9 billion in long-term financing at below-market interest rates this year.

This funding primarily addresses infrastructure needs following recent earthquakes and supports green transformation initiatives for exporters.

“This financing is primarily used to meet the infrastructure needs that arise after the earthquake,” said Simsek.

The financing aligns with Türkiye’s climate change goals and green economy transition.

Future projects and approvals

Looking ahead, Simsek highlighted several upcoming projects awaiting approval and signing. Notably, the World Bank has approved four projects totaling around $1.9 billion.

These projects aim to tackle flood and drought challenges, enhance energy efficiency in public buildings, rebuild industrial sites in earthquake-affected areas, and create green sector jobs for women and youth.

“In this framework, 4 projects approved by the World Bank amounting to approximately $1.9 billion are about to be signed. With this resource, it is aimed to take measures against floods and droughts, to make investments to increase the energy efficiency of public buildings, to rebuild small industrial sites in the earthquake zone, and to facilitate women and youth access to jobs created by the green sectors of the economy by increasing financing opportunities,” Simsek highlighted.

Support for earthquake-affected regions

Simsek detailed efforts to secure additional funding for earthquake recovery and green transformation. The Islamic Development Bank and the International Islamic Trade Finance Corporation are expected to provide $250 million for these initiatives.

Additionally, $200 million from the Asian Infrastructure Investment Bank is earmarked for road improvements, and $165 million from the Islamic Development Bank will support schools in earthquake-affected regions. Türkiye is nearing the finalization of $2.5 billion in external funding.

Ongoing international collaboration

Minister Simsek also mentioned the Middle Corridor Railway Development Project, which benefits from international support. He reaffirmed Türkiye’s commitment to transparency and cooperation with global institutions to finance infrastructure investments and support green transformation, reflecting increased confidence in Türkiye’s economic program.