EBRD financing for quake-hit Türkiye reaches record $2.7B in 2023

By Tuba Ongun

The European Bank for Reconstruction and Development (EBRD) provided a record €2.48 billion ($2.7 billion) in financing in Türkiye in 2023, boosted by the bank's earthquake response.

The EBRD's financing for Türkiye last year increased from €1.63 billion in 2022 and €2 billion in 2021, according to a statement on Thursday.

Türkiye received the largest volume of investment in the EBRD's portfolio in 2023 for the fourth consecutive year.

On Feb. 6, 2023, more than 50,000 people in Türkiye and Syria were killed by two powerful earthquakes with magnitudes 7.7 and 7.6 which hit 11 provinces in Türkiye’s southern region, home to about 14 million people.

Arvid Tuerkner, EBRD Managing Director for Türkiye, said: "The EBRD remained committed to the country and, in addition to maintaining its usual priorities, was swift to deploy a comprehensive earthquake response plan aimed at preserving jobs, livelihoods and human capital in the affected region."

Tuerkner pledged that the bank would continue contributing to Türkiye's reconstruction efforts and the economy in the years to come.

In March 2023, the EBRD announced a multi-year €1.5 billion investment plan for quake-hit southern Türkiye with an aim of supporting the recovery, reconstruction and reintegration of the region’s economy to preserve human capital, livelihoods and jobs in the affected cities.

The bank provided €600 million in credit lines to local lenders for businesses and individuals directly affected by the earthquakes, as well as new lending to companies participating in recovery and reconstruction efforts in the area.

More than €800 million has already been made available as part of the earthquake response plan.

Green financing accounted for 58% of the bank's total investment last year, noted the statement.

"It was also a significant year for green and gender-related projects in the country," Tuerkner said.

The bank financed 48 projects in Türkiye last year, with 91% of the investments contributing to the country’s private sector.

The EBRD is one of the key investors in Türkiye, with more than €19 billion invested across 439 projects and trade facilitation lines since 2009.