Türkiye opts out of defense bank initiative with NATO allies

ANKARA

Türkiye has decided not to join a multinational defense bank initiative involving seven NATO allies and Ukraine after the participating countries formally declared their intention to establish the institution, Turkish defense sources said on July 10.

NATO members Türkiye, Canada, Albania, Belgium, Greece, Latvia, Luxembourg and Romania, together with Ukraine, announced their intention to establish the Defense, Security and Resilience Bank (DSRB) in a joint declaration issued on July 7 during the NATO leaders’ summit held in the Turkish capital Ankara.

Following negotiations held in Montreal, Canada, Turkish authorities conducted an interagency assessment involving representatives from the Defense Ministry, the Foreign Ministry, the Treasury and Finance Ministry and the Presidency of Defense Industries (SSB).

“As a result of these consultations, it was decided that Türkiye would not, at this stage, commit to joining the bank,” the sources said, as quoted by Turkish media.

The bank will be headquartered in Canada and is expected to become operational in 2027.

The joint statement stressed the need to “mobilize public and private capital in support of defense, security and resilience priorities.”

According to the statement, the bank’s objectives include expanding access to capital, lowering financing costs and supporting the growth of industrial capacity in member states.

The founding countries said the DSRB is intended to complement, rather than duplicate, existing national and multinational instruments designed to increase defense production.

The Wall Street Journal said the bank aims to provide up to 100 billion euros ($134 billion) in low-cost financing for defense and security projects.

It will leverage the strong credit ratings of its member states to raise funds at favorable rates on international capital markets, channeling the proceeds into defense-related projects.

The DSRB is also expected to provide guarantees to commercial banks lending to defense companies or directly finance projects considered strategically important to national security.