Türkiye is close to signing deals for foreign financing worth around $2.5 billion (TL 83.81 billion), Finance Minister Mehmet Şimşek said Wednesday, as inflows maintain pace in a drive mainly oriented toward rebuilding the southeastern region devastated by last year's earthquakes.
Türkiye has ensured approximately $2.9 billion in long-term financing this year with interest rates below market conditions, the minister said.
"Our work with international financial institutions is turning into concrete steps, development-oriented projects are supported with favorable financing, long-term and below-market interest rates, and confidence in the program continues to increase," he told Anadolu Agency (AA).
Emphasizing that the economic administration continues to work intensively in coordination with relevant ministries and institutions to provide financing for projects in line with the economic program, the minister stated that they continue to provide resources from foreign financing institutions within the scope of project financing.
"This financing is primarily used to meet the infrastructure needs arising after the earthquakes," said Şimşek.
Eleven provinces in the country were hit by twin devastating tremors in February 2023, which claimed more than 50,000 lives and caused damage worth tens of billions of dollars.
Şimşek explained that by prioritizing sustainability, the country provides financing for projects that support the green transformation of exporters and strengthening of the real sector and are compatible with climate change and transition to a green economy in the long term.
Referring to the projects to be approved and signed in the coming period, he stated that approximately $1.9 billion for four projects, approved by the World Bank, are about to be signed.
"With this resource, it is aimed to take measures related to floods and droughts, to make investments to increase the energy efficiency of public buildings, to rebuild small industrial sites in the earthquake zone, and to facilitate the access of women and young people to jobs created by the green sectors of the economy by increasing financing opportunities," he added.
Şimşek also mentioned that they are in the signing phase of securing a total of $250 million from the Islamic Development Bank to support the green transformation of exporters and from the International Islamic Trade Finance Corporation to aid businesses affected by the quakes through export and development banks.
Additionally, he highlighted that they are nearing the final stage of securing $200 million from the Asian Infrastructure Investment Bank for the improvement of highways in the quake region and $165 million from the Islamic Development Bank for the support of schools in the same area.
