World Bank to provide $18 billion support for Türkiye

ANKARA

The World Bank has increased its support for Türkiye from $17 billion to $35 billion, providing an additional $18 billion of resources for the next three years, Treasury and Finance Minister Mehmet Şimşek has said.

"The Country Cooperation Framework Program, under which the World Bank will provide an additional $18 billion in financing to our country in the first three years, has been discussed by the World Bank's Board of Executive Directors and entered into force," the minister told state-run Anadolu Agency on April 10.

Noting that the $1.5 billion in financing provided so far will be used for projects to ensure Türkiye's energy security and support the green transformation process of enterprises, Şimşek said that an important program has now been signed with the World Bank that will form the basis of financial and technical cooperation for the period of fiscal years 2024-2028.

“Following the announcement of the medium-term program, the World Bank decided to increase the amount of funds it transfers to Türkiye to $35 billion by adding $18 billion to the current $17 billion program,” Şimşek added.

“Türkiye ranks third in the world and first in its region among the countries that receive concessional loans from the Bank.”

The minister noted that a program has been prepared in line with the priorities of Türkiye's 12th Development Plan to determine the areas of investment.

“The program will focus on high and sustainable productivity growth, inclusive services, and strengthening employment and resilience,” Şimşek said.

“These headings outline the areas of cooperation that can be developed between the World Bank and Türkiye. In this context, World Bank support is planned in many areas such as disaster resilience, energy, green transformation, climate change mitigation, export promotion, real sector, infrastructure, logistics, industry, agriculture, education, health and inclusion.”

The program will be implemented jointly by the World Bank's International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). The impact of the Bank's operations in Türkiye will be enhanced. This will be done through an approach that focuses on solving country-specific challenges, seeks to increase private sector participation, and aims to achieve holistic results in operations.

Of the total amount, $6 billion is expected to come from the IBRD and $9 billion from the IFC. With MIGA mobilizing $3 billion through short-term guarantees, about two-thirds of the financing to be provided over three years is expected to be used for private sector development.

Şimşek stated that the World Bank will continue conducting macro and sectoral technical and analytical studies in the new program period.

“We will also explore opportunities to form new partnerships with other development stakeholders to support our country's development goals,” he said.

“For over 70 years, the World Bank has been a key partner in achieving Türkiye's development goals. The new Country Cooperation Framework strengthens our partnership with the Bank. This cooperation also demonstrates the World Bank's confidence in our country's economic and investment program for the next five years. The flow of resources to our country will continue to increase in the new period.”