Amid the recent concerns that have been raised over the apparent lack of support from international organizations in the crucial debris removal and waste disposal processes, European Union member states on Monday inked a deal to provide 400 million euros (approximately $426 million) in disaster relief aid to Türkiye in the aftermath of twin earthquakes that struck the country’s southern regions earlier this February.
The Council of the EU announced that it has agreed on amendments to the EU budget that would allow it to “provide a total of 454.8 million euros in disaster relief aid to Romania and Italy, to repair the damage inflicted by natural disasters, and to Türkiye.
Ankara will be the biggest beneficiary of the aid package, as the bloc commits 400 million euros to assist Türkiye.
Romania and Italy will receive 33.9 million euros ($36.15 million) and 20.9 million euros ($22.29 million), respectively, to aid in recovery from severe droughts and floods.
The European Parliament has yet to approve the decision.
Meanwhile, earlier this week, the European Bank for Reconstruction and Development (EBRD) also announced its Reconstruction Assistance and Grant program to help small and medium-sized enterprises (SMEs) in the region.
A statement by EBRD said that many small businesses are still struggling in the aftermath of the disaster that hit the country’s southeast, with so many still unable to resume their operations.
The program aims to help businesses reconstruct damaged buildings, manufacturing assets and infrastructure.
According to the statement issued by the EBRD, the bank will provide each business with a grant that covers 85% of the reconstruction and repair costs for a maximum of 60,000 euros (around $64,240).
The program is receiving financial support from the Ministry of Finance of Japan. It will be implemented in the cities of Adıyaman, Hatay, Kahramanmaraş, Kilis, Osmaniye, Gaziantep, Malatya, Şanlıurfa, Diyarbakır, Elazığ and Adana.
The Reconstruction Assistance and Grant program follows the bank’s 1.5-billion euro ($1.6-billion) investment plan for the region over the next two years, which was set up to lessen the economic impact of the disaster and includes the 600 million euros within the Disaster Response Framework.
Arvid Tuerkner, the EBRD’s Managing Director for Türkiye, said, “Our visit to the region showed us very clearly that the earthquake had a devastating impact on small businesses, leaving them grappling with significant financial losses and operational disruptions, infrastructure damage, financial strain and broader economic uncertainty. We are proud to launch the ‘Reconstruction Assistance and Grant Program’ today, which will provide critical support to the SME sector, the backbone of the Turkish economy.”
In addition, the World Bank announced the approval of the financing on June 27.
Some $296.5 million of the loan will be allocated for the projects of the Ministry of Environment, Urbanization and Climate Change; $252.2 million for the Ministry of Health; and $388.3 million for Iller Bank (ILBANK) projects.
The loan has a total maturity of 18 years with a five-year grace period and the interest rate is determined as Euribor+74 bp.
On Feb. 6, magnitude 7.7 and 7.6 quakes struck southern and southeastern Türkiye, claiming the lives of over 50,000 people.
Some 13.5 million people have been affected across 11 provinces in Türkiye, namely Kahramanmaraş, Hatay, Gaziantep, Adıyaman, Malatya, Adana, Diyarbakır, Kilis, Osmaniye, Şanlıurfa, and Elazığ.
