European bank boosts Turkish lira financing in 2018

By Tuba Sahin

ANKARA (AA) - The European Bank for Reconstruction and Development (EBRD) in 2018 stepped up Turkish lira financing in Turkey to a record €331 million (some $390 million) through 13 transactions with Turkish companies.

That was up from €228.8 million ($258.5 million) in 2017, according to a statement from the bank on Thursday.

"The EBRD increased its support for local currency financing in Turkey to a third of its total investment in the country in 2018, a particularly challenging year when an economic slowdown and a dramatic currency depreciation affected many private sector companies," the statement read.

The bank invested €1 billion (some $1.18 billion) in Turkey through 34 projects.

According to the statement, more than half of the EBRD's investment last year in Turkey was in support of sustainable use of energy.

Arvid Tuerkner, EBRD managing director for Turkey, said deepening local capital and currency markets through investments and support for reforms remains among the bank's top priorities in the country.

“At a time of high volatility in the lira, the right financing mix, including local currency financing, is critical for Turkish companies," Tuerkner said.

Since 2009, the EBRD has invested over €11 billion in various sectors of the Turkish economy, with almost all investment in the private sector.

The bank's €7 billion (some $8 billion) Turkey portfolio is the largest among 38 economies where the bank invests, it said.