Turkey EBRD's top market with 1.6B euros invested in 51 projects in 2017


The European Bank for Reconstruction (EBRD) detailed its strong support for Turkey in 2017 yesterday in a statement, announcing it invested 1.6 billion euros in the country in a record 51 projects.

"Turkey is now the EBRD's largest country of operations by annual investment volume and by our portfolio of investments of over 7 billion euros," the bank said in a statement.

Overwhelmingly in the private sector, the bank said almost a third of the projects involved Turkish lira financing, which is important to companies as currency volatility remains high.

The bank also indicated a strong investment is set to continue in 2018 under the leadership of the new EBRD managing director for Turkey, Arvid Tuerkner.

Earlier this week, the bank announced that the EBRD-Turkey donor fund will be established during a two-day visit from the bank's president, Suma Chakrabarti, to Turkey on Jan. 18-19.

"As of this year, Turkey will not only be a shareholder and destination of EBRD finance but also a donor to EBRD-led projects, with the creation of the EBRD-Turkey donor fund. This means that the Turkish government will co-finance socially important projects which will be executed according to EBRD standards and requirements," the bank said yesterday.

Turkey is "greatly important" to the European Bank for Reconstruction and Development (EBRD), which is working to enhance the country's progress, Suma Chakrabarti, president of the bank, said yesterday during his speech at the Turkish Industry and Business Association's (TÜSİAD) 48th general assembly in Istanbul.

"Turkey's progress gained momentum over the last 15 years, and despite all the challenges in the recent past, the country is moving with the strongest growth," he said.

He stressed that the EBRD's mission is to support open market economies. Since the bank began investing in Turkey in 2009, it has invested 10 billion euros in the country and 5.4 billion euros over the last three years, the bank president said.

He had said prior to his visit that the investments in Turkey would exceed 1.5 billion euros at the end of this year.

Nearly all investments - 97 percent - support private companies. The EBRD has offices in Istanbul and Ankara, and invests across the whole of Turkey, either directly or in partnership with Turkish banks.

The EBRD also indicated that its priorities in Turkey, as defined by the country strategy adopted at the end of 2015, are sustainable energy, private sector competitiveness, infrastructure, regional, youth and gender inclusion, and local capital markets. The EBRD made notable investments in all of these areas in 2017.