EBRD, Turkish Treasury establish cooperation fund as Turkey becomes bank’s benefactor

ANKARA

Turkey’s Treasury and the European Bank for Reconstruction and Development (EBRD) have established a cooperation fund account in the amount of 25 million euros.

As a donor, Turkey, through the Undersecretariat of Treasury, will co-finance socially important EBRD-led projects which help boost economic growth and improve people’s lives, according to a follow-up release from both sides.

The protocol was signed by EBRD President Suma Chakrabarti and Turkish Deputy Prime Minister Mehmet Şimşek at a ceremony in Ankara on Jan. 19 in the presence of President Recep Tayyip Erdoğan.

In his opening speech, Erdoğan said Turkey is a founding shareholder of EBRD, which has invested 10 billion euros in the Turkish economy so far, with almost all investments being in the private sector.

Turkey has been the top destination for EBRD investments in the last few years, he noted.

“With a deal which will be signed today, we are moving our cooperation with EBRD on to a new stage… By creating a fund with the bank, we will also be diversifying our development aid policies,” Erdoğan said.

He also noted that the 2017 GDP growth would be around 7 percent, while also adding that Turkey did not deserve the rating decisions of some rating agencies.

“Some credit rating agencies have adopted ideological approaches that they claim Turkey is not stable or was not giving any confidence,” Erdoğan said, stressing that the approach must change.

Şimşek praised the robust cooperation between Turkey and the bank, adding that the deal was a first in Turkey’s history.

“Some 18 percent of the EBRD’s total funds are being used by Turkey on an annual basis. This is a considerable amount. Almost one-fifth of the EBRD funds are utilized by Turkey,” Şimşek said, adding that both sides would work together to make a contribution to development policies in other countries.

In Turkey, the EBRD focuses on investment in sustainable energy, improving infrastructure, strengthening the competitiveness of the private sector, including of small firms, deepening local capital and local currency markets, while promoting greater job and training opportunities for women, youth and people in remote areas.