The European Bank for Reconstruction and Development (EBRD) announced Tuesday it is launching its Reconstruction Assistance and Grant program to help small and medium-sized enterprises (SMEs) operating in the earthquake-impacted region in Türkiye.
A statement by EBRD said that a significant number of small businesses are still struggling in the aftermath of the disaster that hit the country’s southeast, with so many still unable to resume their operations.
The early February disaster toppled hundreds of thousands of buildings, left millions homeless and severely damaged the southeastern region’s infrastructure. The government has said rebuilding could cost more than $100 billion (TL 2.69 trillion).
The program aims to help businesses reconstruct damaged buildings, manufacturing assets and infrastructure.
According to the statement issued by the EBRD, the bank will provide each business with a grant that covers 85% of the reconstruction and repair costs for a maximum of 60,000 euros (around $64,240).
The program is receiving financial support from the Ministry of Finance of Japan. It will be implemented in the cities of Adıyaman, Hatay, Kahramanmaraş, Kilis, Osmaniye, Gaziantep, Malatya, Şanlıurfa, Diyarbakır, Elazığ and Adana.
The Reconstruction Assistance and Grant program follows the bank’s 1.5-billion euro ($1.6-billion) investment plan for the region over the next two years, which was set up to lessen the economic impact of the disaster and includes the 600 million euros within the Disaster Response Framework.
Arvid Tuerkner, the EBRD’s Managing Director for Türkiye, said: “Our visit to the region showed us very clearly that the earthquake had had a devastating impact on small businesses, leaving them grappling with significant financial losses and operational disruptions, infrastructure damage, financial strain and broader economic uncertainty. We are proud to launch the ‘Reconstruction Assistance and Grant Program’ today, which will provide critical support to the SME sector, the backbone of the Turkish economy.”
