The World Bank is partnering with Turkish lender Vakıfbank to mobilize up to 1.5 billion euros ($1.76 billion) to expand access to finance for the country's micro, small and medium enterprises (MSMEs), the multilateral lender said on Tuesday.

The project will leverage a 750-million-euro International Bank for Reconstruction and Development (IBRD) guarantee to Vakıfbank, enabling the bank to mobilize up to 1.5 billion euros from international commercial lenders with a tenor of up to 10 years, the World Bank said.

The initiative, focused particularly on women and youth, is part of the World Bank's "Access to Finance for Jobs and Growth Program," a $4 billion initiative. Türkiye is among the first countries to benefit from the program, which aims to improve access to financial services and instruments for businesses across the Europe and Central Asia region.

The project was approved recently by the World Bank's board of executive directors and will be implemented by Vakıfbank.

With this project aimed at the development of the real sector, the goal is to provide favorable financing to small and medium-sized businesses, especially those with high female ownership and employment rates, and those in regions affected by disasters. Thus, the aim is to support the employment of women and young people.

Treasury and Finance Minister Mehmet Şimşek, in a statement to Anadolu Agency (AA), said that the amount of conditional external financing approved by the World Bank in 2025 is approximately $4.2 billion.

"Within the scope of our long-term cooperation with the World Bank, we believe that increasing employment opportunities for women and young people will make a significant contribution to economic development," he said.

"Our successful cooperation with the World Bank will continue to strengthen in the coming period," he added.