World Bank unveils $35B financing plan for Türkiye
The World Bank is committing $35 billion to Türkiye over a period of five years, focusing on different sectors. But how will this be utilized?
The World Bank recently announced a major financing program for Türkiye totaling $35 billion over the next five years.
This initiative, outlined in the Country Partnership Framework (CPF) approved by the World Bank, aims to support various sectors and initiatives in Türkiye.
Humberto Lopez, the World Bank’s country director for Türkiye, gave detailed information about the program in an interview with BBC Turkiye.
World Bank expresses confidence
Lopez highlighted Türkiye’s strategic importance and the multifaceted challenges it faces, including the aftermath of the Feb. 6 earthquake and the fight against climate change.
However, Lopez clarified that the Canal Istanbul project is not among the projects being financed.
He praised Türkiye’s economic policies, particularly those of the Finance and Treasury Minister Mehmet Simsek, and expressed optimism that the economic environment will improve.
“Slowly, the economic team is taking on these problems in order to be able to correct these policies properly. If you look at the evolution of the CDS (Credit Risk Premium) or the actions of credit rating agencies, markets have reacted positively,” he stated.
The CPF is designed to channel funds to critical areas such as public infrastructure, social services and post-earthquake economic recovery.
Specific projects already under implementation include financing exporters to comply with EU regulations, investments to reduce emissions, and the deployment of solar panels.
Addressing concerns about economic policies affecting low-income groups, Lopez emphasized the need for patience and perseverance in the face of high inflation.
Türkiye’s impressive growth
Highlighting Türkiye’s impressive growth performance over the last two decades, Lopez emphasized the importance of reversing the recent decline in factor productivity.
“Türkiye’s growth performance over the last two decades has been very good, resulting in the creation of more than 11 million new jobs and significant improvements in the living standards of the population over the last 15 years,” Lopez said.
Finally, Lopez emphasized the importance of maintaining current economic policies to protect the vulnerable while sustaining growth and job creation.
He pointed to positive market reactions and increased foreign investment as indicators of Türkiye’s economic resilience.
Source: Newsroom
