EBRD to extend over $32M for quake regions
A EUROPEAN development bank yesterday announced it would provide about 30 million euros ($32.5 million) in long-term financing to Türkiye’s Rönesans Gayrimenkul Yatırım (RGY) to support regions affected by last year’s devastating earthquakes.
The European Bank for Reconstruction and Development (EBRD) loan will be extended to the subsidiary of Türkiye’s Rönesans Holding that deals with commercial real estate development and investment, the company said in a statement.
It said the funds would be used to support the capex of two shopping centers in the southeastern provinces of Kahramanmaraş and Şanlıurfa that were struck by the February 2023 earthquakes. The loan will be backed by a guarantee from the European Union.
The financing will also help to support businesses and livelihoods in the region, which faces labor shortages following migration from the area after the disaster, the statement said.
In the weeks that followed the earthquakes, the EBRD announced a two-year response package worth 1.5 billion euros. The package includes credit lines to individuals and companies, as well as infrastructure investments and support for small and medium-sized enterprises and privatesector partnerships.
The bank says more than half of the investment package has already been made available to companies and individuals in the region.
Jürgen Rigterink, first vice president and head of the Client Services Group of the EBRD, said: “I was shocked and saddened to see during my visit the devastating impact the earthquakes have had on the affected region, and I continue to be inspired by the resilience and determination of the local population here.”
“Reconstruction is a long process and can take many years, but it begins by allowing the private sector to regain its vibrant potential. I am proud to say that we have already made available more than half of our initial 1.5 euros billion investment response, and we will continue to stand with Türkiye on its path to recovery by supporting projects that preserve the livelihoods of the region,” Rigterink said.
On Tuesday, the Turkish Treasury and the EBRD signed a memorandum of understanding for 500 million euro financing to support efforts to revive the earthquake region.