EBRD loan to DenizBank expands earthquake recovery financing

LONDON

The European Bank for Reconstruction and Development (EBRD) is providing a loan of $109 million to Turkish private lender DenizBank, to expand financial opportunities for businesses and individuals affected by the earthquakes that devastated the country’s southeastern region.

The loan is part of the EBRD’s Türkiye Disaster Response Framework, which was launched in the aftermath of the earthquakes that caused more than 50,000 fatalities and more than $100 billion in damage to the Turkish economy.

The loan will help to ensure financial access for the region’s businesses facing these challenges while recovery and reconstruction efforts are under way, the development bank said in a statement.

The EBRD previously announced a 1.5 billion euro, two-year investment plan for the region, to lessen the economic impact of the disaster.

“We have always stood by our financial partners in Türkiye to help them deliver finance to sub-borrower segments and regions in need of financial support,” said Arthur Poghosyan, EBRD deputy head of Türkiye, Financial Institutions.

The 600 million euro Türkiye Disaster Response Framework, the first framework of its kind deployed in the EBRD regions, aims to provide support for companies and individuals affected by the disaster, as well as new lending for companies participating in recovery and reconstruction efforts in the area, strengthening the private sector’s role in disaster response.