The Industrial Development Bank of Türkiye (TSKB) announced Tuesday it had secured a $100 million (TL 2.91 billion) loan from the Islamic Development Bank (IsDB) Group earmarked for the redevelopment of the earthquake-affected regions aligning with principles of sustainability.
This financing from the IsDB Group will aim to support private sector investments in 17 provinces officially designated as earthquake-affected by the Disaster and Emergency Management Authority (AFAD), according to the TSKB statement.
TSKB CEO Murat Bilgiç, whose views were included in the statement, noted that they have been dedicated to contributing to the socioeconomic redevelopment of the region and elevating its welfare level following the earthquake disaster in Türkiye.
“The earthquake disasters we experienced at the beginning of the year have deeply saddened us. Following our provision of both in-kind and cash aid to sustain basic life in the region, we actively engaged with the chambers of industry in these provinces, attentively listening to the needs of the local business community on-site,” he said.
“Recognizing the significance of supporting the region’s reconstruction in line with sustainability criteria, we have committed ourselves to intensify our engagements with international development finance institutions to secure new financing opportunities,” he added.
Furthermore, Bilgiç said they aimed to provide a restorative, qualified and sustainable impact in the region with the financing agreement signed with IsDB Group.
“We will contribute to the restoration of competitiveness and growth of employment in these provinces through investments geared to enhance production capacity and productivity by considering the improvement strategy for the manufacturing industry outlined in the Türkiye Earthquake Recovery and Reconstruction Assessment (TERRA) Report,” he explained.
Highlighting that the repercussions of the earthquake extend beyond the region to impact the entirety of Türkiye, Bilgiç said, “In our research report, that we published and shared with our stakeholders following our on-site visit, we know that while the share of the provinces in the earthquake zone in the country’s gross domestic product (GDP) finds 13%, they have varying weights in different branches of economic activity.”
“The recently signed financing agreement, dedicated to the reconstruction of earthquake-affected regions, will additionally foster economic stability within our country. In addition, at TSKB, we uphold a strong sustainability approach, considering both environmental and social impacts. We firmly believe that reconstruction in the aftermath of a disaster should align with the objectives of equitable and low-carbon development, striking a balance within the secure space between the social floor and the ecological ceiling,” he noted.
“We would like to thank our esteemed business partner, the IsDBGroup, with whom we share a common vision, for their meaningful collaboration and the trust they have bestowed upon us,” said Bilgiç.
A pair of powerful earthquakes struck the country’s southeastern region earlier this year, killing more than 50,000 people and causing widespread damage. Official estimates put the cost of the damage and reconstruction at around $100 billion.
Reflecting on the agreement, Dr. Walid Mohamad Abdelwahab, director of IsDB Group Regional Hub, commented: “As the IsDB Group, we take pride in our development-focused collaboration with the public and private sectors in Türkiye for half a century. This collaboration spans diverse fields, including health, education, industry, green transportation, renewable energy and energy efficiency, international trade, banking and insurance.”
“We consider the partnership between the IsDB Group and TSKB to be an exemplary success. We stand ready to extend all necessary support to share TSKB’s finance-based development model experience with other member countries within the IsDB Group,” he noted.
