World Bank Director sees "promising future for Turkish economy, yet much to accomplish"

World Bank Director sees "promising future for Turkish economy, yet much to accomplish"
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World Bank Director for Turkey Humberto Lopez highlighted the forthcoming obstacles for the Turkish economy, indicating that fine-tuning several policies will pose a significant barrier in the near term.

Turkey’s economic policies are headed in the right direction but that there is still a lot to be achieved, World Bank Director for Turkey Humberto Lopez said on Thursday.

In a recent interview with Reuters about a planned $18 billion additional financial aid to Turkey, Lopez expressed his views on the nation’s economic policies and prospects.

"The tightening in monetary policy, the lifting of macro-prudential measures, and fiscal regulations are promising," he said, highlighting some of the recent policy shifts.

He also unveiled that over the next three years, the World Bank would be providing Turkey with financing totaling $18 billion. Of this substantial sum, $6 billion is slated for the public sector, while the remaining $12 billion will be channeled to the private sector.

Lopez touched on the challenges ahead for the Turkish economy, noting that in the short term, calibrating various policies would be a hurdle. Meanwhile, in the long run, the primary challenge would be bolstering productivity.

Additionally, Lopez pointed out that the World Bank has already provided close to $3 billion in financing to Turkey for earthquake preparedness and mitigation. Within the $6 billion allocated for the public sector, there are plans to increase the guarantee given to Eximbank, a development bank focused on exporting businesses in Turkey.

This financial commitment by the World Bank underscores its belief in the potential of the Turkish economy and serves as a strong signal of support at a time when Turkey is navigating significant economic challenges. The infusion of funds, particularly into the private sector, is expected to spur growth, increase investment, and foster innovation in a range of industries.