European development bank offers Türkiye post-quake aid

European development bank offers Türkiye post-quake aid

European development bank offers Türkiye post-quake aid

The European Bank for Reconstruction and Development on Thursday announced it would invest up to 1.5 billion euros ($1.6 billion) in Turkey’s earthquake-hit region over the next two years.

London-based EBRD said in a statement that its response includes “600 million euros in credit lines to local banks for businesses and individuals directly affected by the earthquakes” in southern Turkey.

“The EBRD will also support the reconstruction of sustainable infrastructure in the affected cities, building on the Bank’s strong track record of cooperation with municipalities such as Hatay and Gaziantep,” read the statement.
“It will also focus funds on the reconstruction of the railway network to re-establish connectivity between the south-eastern region and the rest of the country.”

A key focus of the response package will be small and medium-sized enterprises (SMEs) in the region, said the EBRD.
“The Bank will provide funding, advisory services and mentorship with a view to repairing damage, building resilience and rebuilding supply chains for businesses in the affected cities,” it said.

Arvid Tuerkner, EBRD managing director for Türkiye, added that the bank stood ready to support the country’s “private sector in its recovery and reconstruction.”
“This is one of the most devastating crises seen in Türkiye and Europe, for that matter, in over a century and the impact on the population and the economy is extremely severe,” he said.

“The EBRD’s response of up to €1.5 billion is substantial and reflects the Bank’s commitment to Türkiye, particularly in these painful and challenging times,” he continued.
“We will work with the authorities and our partners across sectors to rebuild and reintegrate the region’s economy, while strengthening its green credentials, resilience and competitiveness.”

The EBRD’s response will require additional donor funds and cooperation to support human capital and skills policies, SME advisory, infrastructure project preparation and implementation.
The devastating Feb. 6 earthquakes and aftershocks caused damage worth more than $100 billion in Türkiye alone, the United Nations said on March 7.

The World Bank estimated last week that the devastating quake, which flattened entire cities, had caused damage worth more than $34 billion in Türkiye, with recovery likely to double that sum.
The international lender predicted the cost to be $5.1 billion in neighboring Syria.
The EBRD is the leading institutional investor in Türkiye, having invested almost 17 billion euros in the country since 2009, 93 percent of that in the private sector. In 2022 alone, the Bank invested more than 1.6 billion euros in the country.