Friday, June 21, 2024

Türkiye: EIB Global provides €400 million to Türkiye to support ILBANK’s post-earthquake reconstruction projects

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  • EIB Global provides €400 million to support Türkiye’s efforts to restore water and wastewater infrastructure following the earthquakes in February 2023.
  • Guaranteed by the European Union, the EIB loan is part of Team Europe’s response to the earthquakes, with support pledged at the Donors’ Conference on 20 March 2023.
  • The loan will help to improve living conditions, water supply and public health, reduce greenhouse gas emissions through more efficient wastewater treatment, and create jobs in the region.

The European Investment Bank (EIB), the bank of the European Union, has signed a loan agreement worth €400 million with Türkiye. The loan is fully guaranteed by the European Union (EU) and will help to restore water and wastewater infrastructure in the provinces affected by the earthquakes that hit the south-east of the country on 6 February 2023. The loan will be provided by EIB Global, the arm of the EIB that works beyond the European Union, with İller Bankası (ILBANK) acting as the intermediary.

The signature of the loan follows on from the Donors’ Conference convened on 20 March 2023 by the European Commission and the Swedish Presidency of the Council of the European Union, during which Team Europe pledged €3.6 billion to support people in Türkiye and Syria.

The project for which the EIB loan is earmarked includes the rehabilitation, construction and extension of water and wastewater infrastructure in devastated regions. In addition to restoring normal living conditions for people in the region, the loan will improve public health and water supply, and reduce greenhouse gas emissions through more efficient wastewater treatment. It will also contribute to socioeconomic development by creating jobs.

EIB President Werner Hoyer said: “Following the tragic earthquakes in Türkiye earlier this year, the EIB, as the EU bank, joined the international community in supporting the people affected by these devastating events. As part of the Team Europe package, our €400 million in financing will respond to current needs by upgrading water infrastructure.”

Member of the European Commission for Neighbourhood and Enlargement, Olivér Várhelyi, said: “I am pleased that the European Investment Bank is providing this important financial contribution to support affected municipalities after the devastating February Earthquakes, with the backing of a guarantee from the EU. This is the delivery of EU solidarity with the people in Türkiye. I want to recall that Team Europe pledged more than 3 billion for people in Türkiye, including 1 billion in grants from the EU budget.”

ILBANK Director General Recep Türk stated “After the earthquake, ILBANK started financing negotiations with international financial institutions to support the affected region. Within the scope of these negotiations, agreements were reached for financing from four international financial institutions including the EIB.  In this context, the signing of the loan agreement between the Ministry of Treasury and Finance of the Republic of Türkiye and EIB with a budget of 400 million marks a significant step for the projects under this financing package, which will be carried out by ILBANK.”

Republic of Türkiye Minister of Treasury and Finance Mehmet Şimşek remarked, “We welcome the EIB’s support for our reconstruction efforts. We are also grateful for the EU’s solidarity with Türkiye. We are spending about 3% of GDP this year to rebuild the region that was affected by the earthquakes in February.”

Background information

About the EIB and EIB Global

The European Investment Bank (EIB) is the long-term financing institution of the European Union, owned by its Member States. It provides long-term finance for sound investments in pursuit of EU policy goals, supporting projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs).

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. We aim to support €100 billion of investment by the end of 2027 — around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society in close cooperation with other multilateral development banks. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world.

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