Türkiye has secured more than $230 million (200 million euros) in financing from the European Investment Bank (EIB), marking a significant development in the country’s efforts to support sustainable growth and strengthen international financial cooperation. The funding package represents the EIB’s first major financing commitment to Türkiye after an eight-year pause in lending activities.
According to the Ministry of Treasury and Finance, the financing will be provided through two separate agreements, both supported by a Treasury repayment guarantee. The return of EIB funding is considered an important milestone, as the bank had largely suspended lending to Türkiye in 2019 due to diplomatic tensions related to oil and gas drilling activities near Cyprus. Apart from emergency support provided after the devastating earthquakes in 2023, this is the first major financing package since the suspension.
The total funding has been divided equally between two key financial institutions. The Türkiye Development and Investment Bank (TKYB) will receive 100 million euros to support sustainable industrial projects, while another 100 million euros will be allocated to Türk Eximbank. The latter will focus on providing green financing solutions to exporters, helping them improve environmental performance and remain competitive in international markets.
The funds are expected to benefit small and medium-sized enterprises (SMEs) across the country. Businesses will be able to access financing for investments in renewable energy projects, energy-efficiency improvements, and technologies that reduce carbon emissions. These initiatives are aimed at helping companies adopt more sustainable business practices while contributing to Türkiye’s climate goals.
The financing will also support Turkish exporters in preparing for the European Union’s Carbon Border Adjustment Mechanism (CBAM), a policy designed to reduce carbon-intensive imports into the EU. By investing in cleaner production methods and lowering emissions, Turkish companies will be better positioned to maintain access to important European markets.
Government officials and banking leaders welcomed the agreements, describing them as a positive signal of growing international confidence in Türkiye’s economy. Treasury and Finance Minister Mehmet Şimşek stated that improving relations between Türkiye and the European Union are beginning to deliver tangible benefits, including increased access to foreign financing.
Representatives from the participating banks emphasized that the agreements demonstrate trust in Türkiye’s long-term economic prospects. EIB Vice President Robert de Groot described the financing package as the start of a new phase of cooperation between the bank and Türkiye. He also indicated that the EIB is prepared to support future projects in areas such as clean energy, sustainable transportation, and water infrastructure. With the completion of these agreements, Türkiye has now secured a total of $4.9 billion in external financing so far this year.
Subscribe to get the latest posts sent to your email.
