The Turkish Treasury and Finance Ministry has signed a new financing agreement worth $740 million with the Islamic Development Bank (IsDB) to support critical infrastructure investments in public health and education.
The deal will channel long-term, cost-effective funding toward the reinforcement of public hospitals in Istanbul and the development of disaster-resilient educational facilities in Türkiye’s earthquake-affected regions, Anadolu Agency (AA) reported on Friday.
The financing package includes 500 million euros (over $575 million) for the Istanbul Project Coordination Unit to support the reconstruction and strengthening of public hospitals in the city.
An additional $165 million will be allocated to the Ministry of National Education for inclusive and disaster-resilient school infrastructure in the southeastern region that was struck by a devastating earthquake more than two years ago.
"The fact that the financing provided through these agreements is long-term and more favorable compared to market conditions clearly reflects the confidence international financial institutions have in Türkiye's economy and our program," Treasury and Finance Minister Mehmet Şimşek said.
Şimşek stressed continued efforts to secure favorable and long-term external financing across various sectors as part of the country's sustainable development perspective.
"The agreement signed with the Islamic Development Bank will significantly contribute to the strengthening of public hospitals in Istanbul and educational institutions in earthquake-affected regions," the minister said.
The deal with IsDB brings the amount of public sector external financing Türkiye has secured since the beginning of this year to nearly $3 billion.
As part of earthquake-related financing, the total funding provided to the public sector by international institutions has reached approximately $6.5 billion, according to official data.
Moreover, the IsDB is expected to soon provide an additional 200 million euros in financing to Iller Bank (ILBANK), with 150 million euros designated for post-earthquake urban reconstruction and 50 million euros for urban transport projects, the AA said.
