European bank to step up financing in Turkey
After it delivered a high investment volume in difficult market conditions last year, the European Bank for Reconstruction and Development (EBRD) is looking to increase its investment in Turkey in 2020 as the economy is set to rebound.
“In a difficult business environment, our business volume in Turkey remained unchanged in 2019 from the previous year,” said Arvid Tuerkner, EBRD Managing Director for Turkey.
Tuerkner noted that the overwhelming majority of the bank’s investment was in the private sector and half of it was in support of Turkey’s sustainability agenda, the country’s blueprint to implement the global development goals.
Tuerkner added that the EBRD expects the Turkish economy to rebound in 2020: “As investors will look for finance, we will aim to support even more investment projects that boost the economy, create jobs and improve people’s lives.”
In 2020, the bank will also work to expand its Women in Business programme and attract new lenders to the initiative, according to the statement.
“It will continue its engagement with the Turkish government to deploy energy efficiency technologies in schools and to liberalise the railway sector. The EBRD will maintain its focus on renewable energy projects.”
The EBRD will also explore opportunities for Islamic financial products and expects the issuances of Turkish entities to grow. According to the statement, a big part of this financing is expected to be in Turkish lira, as it was in 2019.
Around one-third of the Bank’s 2019 financing related to local currency and the development of local capital markets in order to help companies reduce currency risks.
Across its regions, the EBRD delivered a record level of impact to its regions in 2019.
The bank financed an unprecedented 452 individual projects, compared with 395 a year earlier. Financing exceeded 10 billion euros for the first time in the bank’s history, rising to 10.1 billion euros from 9.5 billion euros.
The EBRD marked its 10th year of engagement in Turkey in 2019.
Since 2009 it has invested almost 12 billion euros in various sectors of the Turkish economy, with almost all investment in the private sector.
The EBRD’s 6.7 billion euros Turkey portfolio is the largest among the 38 economies where the bank invests.