Türkiye once again became the European Bank for Reconstruction and Development's (EBRD) largest country of operation in 2025 by annual investment volume, with funding hitting a record 2.7 billion euros ($3.2 billion), the lender said on Thursday.
The amount, up from 2.6 billion euros in 2024, covered 54 projects, with 91% of investments directed to the private sector, the London-based bank said. Cumulative EBRD investment in Türkiye has now exceeded 23.35 billion euros since the bank began operations in the country in 2009.
The EBRD, which covers economic trends across emerging Europe, Central Asia, the Middle East and Africa, expects to surpass last year's record again in 2026, according to Elisabetta Falcetti, the bank's managing director for Türkiye and the Caucasus.
Falcetti said strong private-sector appetite for investment, rising competitiveness among Turkish firms, support for the green transition and progress in human capital development all contributed to last year's performance.
"In 2025, our work in Türkiye reflected both the scale of the country's investment needs and its long-term potential," she said. "From landmark private-sector transactions to targeted support for decarbonization, digitalization and human capital, the EBRD continues to mobilize international financing where it matters most."
She added that Türkiye remains a strategic priority for the bank.
The EBRD's largest single deal in the country last year was a 315-million-euro syndicated loan to Fraport TAV Antalya, arranged to refinance a short-term bridge loan and involving a broad group of international lenders.
Post-earthquake support
Reconstruction following the devastating earthquakes that struck southeastern Türkiye in early 2023 remained a major focus, the EBRD said.
The bank has now exceeded its initial commitment to the region, with total earthquake-related investment reaching 1.6 billion euros over the past three years.
In 2025 alone, this included 195 million euros for two major infrastructure projects in the quake-hit provinces of Adıyaman and Hatay: 95 million euros for wastewater and stormwater networks in Adıyaman and 100 million euros for the Arsuz sewage network and the Üçgüllük wastewater treatment plant in Hatay.
The EBRD also provided financing to Enerjisa Enerji to support the reconstruction and modernization of electricity distribution networks in the earthquake-affected Toroslar region, alongside investments in new solar power plants.
In cities indirectly affected by the disaster, where public services were strained by inflows of displaced people, the bank extended a 45-million-euro loan to the municipality of Mersin for new wastewater facilities.
Green economy
Green investments accounted for 66% of the EBRD's total funding in Türkiye in 2025, with a focus on decarbonization and renewable energy, while 61% of investments supported equal opportunities for women.
Among major green projects, the bank provided a $200-million loan to Enerjisa Enerji Üretim to support the construction of 250 megawatts of wind power capacity in Muğla.
It also launched a third phase of its Türkiye Green Economy Financing Facility (GEFF), worth 1 billion euros, after allocating 280 million euros to partner banks under GEFF I and II.
The EBRD continued to support decarbonization in hard-to-abate sectors, including a 50-million-euro loan to Çimsa under its emissions-reduction program and a $50-million investment in a Eurobond issued by Çimko Çimento ve Beton Sanayi.
Human capital
Human capital development remained another priority, the EBRD said.
The bank rolled out its Youth in Business programme in Türkiye, which is expected to mobilize up to 250 million euros in financing for young entrepreneurs. It also provided a 75-million-euro loan to the Industrial Development Bank of Türkiye (TSKB) to improve access to finance for women- and youth-led businesses.
Additional support included a $130-million partnership with Akbank to back inclusive growth and SME digitalization, a 25-million-euro loan to DenizBank under the Digital Transformation Financing Facility, and a risk-sharing facility under Akbank's supply-chain finance programme benefiting apparel retailer DeFacto's suppliers.
Growth outlook
Falcetti said the EBRD expects Türkiye's economy to grow by around 3.5% this year, with updated forecasts to be published at the end of February.
She said Turkish industry and the financial system had shown resilience despite internal and external shocks.
"I remain optimistic about the country's potential, particularly given regional geopolitics and the opportunities for Turkish companies to participate in reconstruction efforts in neighboring countries," she said.
The Turkish government forecasts GDP growth of 3.8% in 2026 and 4.3% in 2027.
The economy expanded by 3.7% year-over-year in the third quarter of 2025, as agricultural activity tumbled, while tight monetary policy and a slowdown in demand also weighed.
That brought growth in the first nine months to 3.7%. In 2024, it grew 3.3% as a whole.