Reuters: EBRD to increase its investment in Turkey in 2023

Reuters: EBRD to increase its investment in Turkey in 2023
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A senior official at the EBRD visited Turkey’s earthquake region and talked to officials and members of the private sector regarding increased investment for reconstruction this year.

Daren Butler and Ebru Tuncay report in Reuters that the European Bank for Reconstruction and Development (EBRD) will increase its investment in Turkey this year following the structural damage caused by the February earthquakes.

According to the World Bank, the earthquakes caused approximately $34 billion in direct damage, but reconstruction could cost twice that. In this regard, EBRD Vice President Jurgen Rigterink, who spoke to Turkish officials and institutions in the earthquake area, commented that the bank “plans to invest up to 1.5 billion euros in Turkey's earthquake-hit region in a package that includes credit lines, infrastructure investment, and support for small and medium-sized enterprises (SMEs).” A portion of those funds will be lent directly to banks to assist their earthquake-affected clients.

Rigterink, who noted that the bank “remain[s] committed” to investing in Turkey, said that it will be helping SME’s with liquidity, forbearance, and payment holidays.

According to Reuters, the EBRD is the top investor in Turkey, with 93% of the 17 billion euros invested since 2009 going to the private sector. The bank’s investment in Turkey in 2022 was $1.7 billion.