Türkiye, EBRD ink MoU for $543M financing for quake-hit region

A MEMORANDUM of understanding (MoU) was inked between the Treasury and Finance Ministry and the European Bank for Reconstruction and Development (EBRD) for financial support amounting to 500 million euros (nearly $543 million) for the region hit by last year’s devastating earthquakes, Anadolu Agency (AA) reported yesterday.

According to information obtained from the ministry by AA, a delegation led by EBRD First Vice President Jürgen Rigterink met with Treasury and Finance Minister Mehmet Şimşek at the ministry.

Türkiye’s economic program, strong collaboration with the bank and

EBRD’s financing support for earthquake-affected regions were discussed during the meeting.

The EBRD, among the first international financial institutions to provide support after the Feb. 6 earthquakes, had announced a 1.5 billion euro financing package for the reconstruction of the region, targeting both the public and private sectors.

This framework provided 800 million euros in financing for private sector projects, small and medium-sized enterprises (SMEs), and local banks in the earthquake-affected region.

During the delegation visit, the ministry and the EBRD signed a memorandum of understanding for 500 million euros in financing under the mentioned package. The memorandum was signed by Deputy Minister of Treasury and Finance Osman Çelik and EBRD First Vice President Rigterink.

This financing support will be allocated to municipalities through the Iller Bank for use in water, drinking water, sewage, solid waste and transportation sectors. The support is expected to be provided in the years 2024 and 2025.

Commenting on the financing to be provided by the EBRD, Şimşek noted in a post on a social media account that healing earthquake wounds “is our priority.”

“We mobilized all our resources in the budget in this direction,” he wrote on X, formerly Twitter.

“We also activate cost-effective financial support from international organizations to be used in the earthquake zone,” he added, while thanking EBRD for the resources it would provide.

Meanwhile, efforts continue to secure concessional external financing from international organizations for the reconstruction of areas impacted by earthquakes that struck Türkiye’s southeast on Feb. 6, 2023. Approximately $3 billion has been secured for this purpose to date.