The European Bank for Reconstruction and Development (EBRD) will invest up to 1.5 billion euros ($1.6 billion) in southern Türkiye over the next two years after powerful earthquakes shook the region on Feb. 6.
The EBRD aims to support the recovery, reconstruction and reintegration of the region's economy to preserve human capital, livelihoods and jobs in the affected cities, the bank said in a statement Thursday.
The bank provides 600 million euros in credit lines to local lenders for businesses and individuals directly affected by the earthquakes, as well as new lending to companies participating in recovery and reconstruction efforts in the area.
It will also support the reconstruction of sustainable infrastructure in the affected cities, cooperating with municipalities such as Hatay and Gaziantep.
The bank will also focus funds on the reconstruction of the railway network to reestablish connectivity between the southeastern region and the rest of the country.
The bank will expand its strong private-sector partnerships and work with companies in various sectors to enable them to continue operating and withstand disruptions to local value chains. It will also help the private sector to adopt new technologies and green principles in planned rebuilding projects.
A key focus of the response package will be small and medium-sized enterprises (SMEs) in the region. The bank will provide funding, advisory services and mentorship to repair the damage, build resilience and rebuild supply chains for businesses in the affected cities.
Arvid Tuerkner, EBRD's managing director for Türkiye, said: “This is one of the most devastating crises seen in Türkiye and Europe in over a century and the impact on the population and the economy is extremely severe. The EBRD is ready to support Türkiye and its private sector in its recovery and reconstruction efforts by building on its strong track record and existing relationships in the country.”
“The EBRD’s response of up to 1.5 billion euros is substantial and reflects the bank’s commitment to Türkiye, particularly in these painful and challenging times,” he added, “We will work with the authorities and our partners across sectors to rebuild and reintegrate the region’s economy while strengthening its green credentials, resilience and competitiveness.”
On Feb. 6, 2023, two powerful earthquakes hit southern Türkiye as well as the northern and western parts of Syria. The earthquakes caused extensive destruction and resulted in over 50,000 deaths throughout the affected region.
The World Bank has estimated that the direct physical damage caused by the earthquakes in the affected region amounts to approximately $34 billion. However, the cost of reconstruction could double that amount, making it necessary for the government to allocate significant funds for rebuilding efforts.
