IFC announces $530M for Türkiye's quake-hit region

By Tuba Ongun

World Bank’s private-sector arm announced Friday a financing package of up to $530 million to support micro and smaller businesses in Türkiye's earthquake-hit southern region.

The fund of the International Finance Corporation (IFC) will be channeled through five private lenders of Türkiye, namely Akbank ($71 million), DenizBank ($119.5 million), QNB Finansbank ($109.5 million), Is Bankasi - ($150 million) and Yapi Kredi ($80 million).

Some $220 million of the fund was mobilized from international financial and development institutions.

Two powerful earthquakes hit 11 provinces in southern Türkiye on Feb. 6, causing extensive damage and killing and injuring tens of thousands of people.

The quake-hit region was home to more than 470,000 private enterprises, of which 99% are micro, small, and medium enterprises (MSMEs), the IFC said in a statement.

"The financing package aims to keep these vulnerable but otherwise viable enterprises afloat, as part of our strong commitment to support the economic recovery and foster sustainable and inclusive growth in Türkiye," said Wiebke Schloemer, IFC director for Türkiye and Central Asia.

Türkiye is currently the IFC’s third-largest investment destination globally, with a committed portfolio of close to $4.9 billion as of November 2023.