The Treasury and Finance Ministry said on Monday that it has signed a memorandum of understanding (MoU) with the Asian Infrastructure Investment Bank (AIIB) for $5 billion in financing for public sector projects in three years.
"The financing of approximately $5 billion that the AIIB envisages providing for public projects in our country in the next three years (2025-2027) was concretized with the Memorandum of Understanding signed today at the meeting held in Al-Ula between the Minister of Treasury and Finance, Mr. Mehmet Şimşek, and the President of the AIIB, Mr. Jin Liqun," the ministry said in a written statement.
"With this Memorandum of Understanding, a multi-year framework was established with the AIIB for the first time, and our cooperation was further strengthened," it added.
The deal is aimed at funding sustainability and green development projects in the country and supporting projects in energy, transportation, export financing, health, and water management sectors, among others.
In addition to the financing to be provided to the public sector, it is envisaged that an additional $5 billion in financing will be provided for private sector projects in the future, the ministry also said.
"Thus, while the diversity of resources for our real sector and exporters increases, favorable conditional financing will be provided for infrastructure and superstructure projects in different sectors and regions," it noted.
Furthermore, it said that Türkiye has become "a preferred development partner" thanks to the strong cooperation and effective project finance management carried out by the ministry with the multilateral development banks. "Our active portfolio size in these institutions has reached $35 billion by the end of 2024, and this success is an important indicator of the confidence in our economic program," the statement read.
AIIB is a 110-member international financial institution headquartered in Beijing. 75% of its total capital is distributed to regional members and 25% to non-regional members.
"Our country has a capital of $2.6 billion and a voting power of 2.5% and is the bank's 10th largest shareholder. It ranks seventh among regional countries," the ministry highlighted in its statement.
"Since 2018, AIIB has provided a total of $5.5 billion in financing to our country, and our country is the second country that benefits the most from the bank's financing after India," it concluded.
