Investments by the European Bank for Reconstruction and Development (EBRD) in Türkiye this year are expected to exceed 2.5 billion euros (around $2.72 billion), the bank’s president told Anadolu Agency (AA) on Wednesday, pledging to continue with their investments.
Stressing that Türkiye has become the country where the bank invests the most, Odile Renaud-Basso said, "This year will be another very exceptional year because we expect to have a level of investment above 2.5 billion euros."
"We are currently at a volume of 2.4 billion euros, and we expect this amount to exceed 2.5 billion euros in the remaining two months of the year," she said.
Renaud-Basso noted that the EBRD would continue investing in Türkiye as it sees many investment opportunities.
"For example, our one big priority is a green transition. So we believe there is a lot to be done," she explained.
Renaud-Basso said the shift in Türkiye’s monetary and macroeconomic policies was "the right one" and should be sustained to tackle persistent inflation.
"What is also very positive is the resilience of the economy and the private sector businesses," she added.
Türkiye’s new economic team appointed following elections this May pledged to return to "rational" policies.
"Türkiye has no choice but to return to a rational ground," Mehmet Şimşek said in June when he took over as treasury and finance minister. A rule-based, predictable Turkish economy will be the key to achieving the desired prosperity, Şimşek said.
Explaining that 93% of their investments are in the private sector, including companies, the manufacturing sector and financial institutions, Renaud-Basso pointed out the importance they attached to financing small and medium enterprises (SMEs), green transformation and supporting women-led businesses.
Noting that 50% of the bank’s investments are made in green transformation projects, Renaud-Basso said that they are working with the private sector to contribute to the decarbonization of carbon-intensive sectors, especially steel and cement.
She further said that EBRD investments are shaped by demand, adding that for this reason, they do not have an annual target. "However, we have always kept our investments in Türkiye very high and we will continue to invest. We see that there are many investment opportunities and we want to continue supporting our customers and the country," the EBRD president said.
Renaud-Basso also said the bank has a 1.5 billion euro investment plan for Türkiye’s earthquake-ravaged southern region over the next two years. A series of earthquakes hit the country’s southeastern region early this year, killing more than 50,000 people and causing widespread damage. Official estimates put the cost of the damage and reconstruction at around $100 billion.
The bank has already deployed 700 million euros in the region in 2023 and will complete the rest next year, she noted.
According to EBRD data, the investment the bank predicts will exceed 2.5 billion euros this year will be the highest investment in Türkiye annually.
The EBRD invested 1.63 billion euros in Türkiye in 2022, while the bank’s previous highest annual investment in the country was recorded in 2021 with 2 billion euros.
Türkiye is one of the EBRD’s largest markets and the bank has invested more than 19.2 billion euros in 431 projects since it began work there in 2009.