World Bank Group spares up to $7.5 bln financing for Turkey for next five years

ANKARA/WASHINGTON

The World Bank Group and Turkey have renewed their partnership with the introduction of a new Country Partnership Framework (CPF) with a substantial amount of financing line late in August.

The 2018–2021 CPF for Turkey focuses on three core areas: Growth, inclusion and sustainability, read a World Bank Group statement, which was released on Aug. 30. 

The CPF for Turkey envisages a financing of $5-7.5 billion from the Bank for a five-year period, the Turkish Treasury announced in a separate statement on Sept. 5. 

The Bank’s technical assistance and analytical studies will be continued in the new CPF period both on the macro and sectoral level, it added. 

“Turkey has the opportunity to build on recent success to bring higher standards of living to all of its population and to enhance its role in the global economy. The new CPF aims to work with Turkey to turn this opportunity into a reality,” said Johannes Zutt, World Bank Country Director for Turkey. 

“As Turkey approaches high income status, our partnership needs to evolve to ensure that World Bank Group’s financing, knowledge, and global experience help Turkey to strengthen the institutions needed to sustain social and economic development at these higher levels,” Zutt added.

According to the framework report on the World Bank website, the CPF will feature a mix of instruments, drawing on the strengths of International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). 

“Turkey has an agile, flexible and entrepreneurial private sector which has been a major driving force behind its growth. Since its first investment over half a century ago, IFC has supported Turkey’s private sector with $14.2 billion in investments in more than 350 projects,” said Tomasz Telma, IFC Director for Europe and Central Asia. 

“Moving forward, to maintain the momentum and build on the economic successes of the past decades, Turkey needs to further develop its strengths and tackle its challenges increasing financial inclusion, global integration, and competitiveness. IFC is committed to help Turkey reach its development goals through consistent support to its private sector,” Telma added.