IFC provides $530 mln financing for quake recovery

ISTANBUL

The International Finance Corporation (IFC) has announced a financing package of up to $530 million to support thousands of micro and smaller businesses in Turkish provinces devastated by February earthquakes and boost recovery efforts.

The funds include up to $220 million mobilized from international financial and development institutions, said IFC, a member of the World Bank Group, in a statement.

The funding aims to support the participating banks by providing liquidity to help them continue lending in the quake-affected provinces.

The five banks include Akbank, which will receive $71 million, DenizBank - $119.5 million, QNB Finansbank - $109.5 million, İş Bankası - $150 million, and Yapı Kredi - $80 million.

The impacted region is home to more than 470,000 private enterprises, of which 99 percent are micro, small and medium enterprises (MSMEs), IFC said.

“Enabling local banks to continue lending to these businesses is crucial to ensure they can fund repairs and access working capital to help them rebound.”

“The financing package aims to keep these vulnerable but otherwise viable enterprises afloat, as part of our strong commitment to support the economic recovery and foster sustainable and inclusive growth in Türkiye,” said Wiebke Schloemer, IFC director for Türkiye and Central Asia.

IFC has supported private sector development in Türkiye for more than 50 years, with investments of nearly $11 billion in the last decade alone.

Türkiye represents IFC's third-largest country exposure globally, with a committed portfolio of close to $4.9 billion as of November 2023.