EBRD European Bank for Reconstruction and Develo : President welcomes Turkish co-financing of projects

Sir Suma Chakrabarti and Turkish President Recep Tayyip Erdoğan celebrating Turkey becoming one of our donors.

Visiting Istanbul, President Chakrabarti calls for further improvement in the business environment to unlock new local and foreign investment

Turkey will co-finance socially important EBRD-led projects which boost economic growth and improve people's lives in the country and the wider region.

Today in Istanbul, in the presence of the Turkish President Recep Tayyip Erdoğan, a €25 million donor fund agreement was signed by the Turkish Deputy Prime Minister Mehmet Şimşek and the President of the EBRD Sir Suma Chakrabarti.

This is the first time Turkey has signed a bilateral donor agreement with an international financial institution.

President Erdoğan said: 'Since I last met EBRD President Chakrabarti at the Bank's annual meeting in 2013 which we hosted here in Turkey, we have seen our relationship develop into an exceptional cooperation. Having skilfully assessed the country's potential, the EBRD believes in Turkey. Its investments here are performing in a stellar way and its commitment to Turkey proves that our relationship is very productive. The government reform programme and the EBRD's priorities in the country are aligned which provides for solid cooperation. With the creation of a donor fund, we are taking our relationship to the next level. Turkey wholeheartedly believes that our funds will provide a great return on investment for the benefit of people.'

President Chakrabarti added: 'Today, the EBRD and Turkey open a new chapter in what already is an important relationship. In addition to being a founding member and a major investment destination for the Bank, Turkey is now also making an important donor contribution to our projects. Donor governments such as Turkey make a vital contribution to our work by providing funds which enhance the impact of our investments. We see Turkey's grant funding as a sign of support for the Bank's work and our model of sustainable and inclusive development led by the private sector.'

The EBRD is one of the biggest investors in the country and since 2019 has invested €10 billion in various sectors of the Turkish economy with 97 per cent of all investments in the private sector.

In 2017 alone, the Bank invested €1.6 billion in a record number of 51 projects in Turkey. These projects promote the use of sustainable energy, better infrastructure, greater competitiveness of the private sector (including small firms), deepening of local capital and currency markets, and greater job and training opportunities for women, youth and people in remote areas.