The International Finance Corporation (IFC), a member of the World Bank Group, has invested over $20 billion in the private sector in Türkiye in the past decade, the organization's regional director for Türkiye and Central Asia said Tuesday.
Speaking to Anadolu Agency (AA), IFC Türkiye and Central Asia Regional Director Wiebke Schloemer noted that Türkiye is one of the biggest markets of the largest global development institutions focused on the private sector in developing countries.
"The IFC has invested over $20 billion in the private sector in Türkiye over the past 10 years," said Schloemer.
She emphasized they’ve boosted their investment in the country over the past two years to support the private sector, with nearly $3 billion of $20 billion invested in Türkiye being committed between July 2022 and June 2023.
Schloemer expressed efforts to improve financial access for underserved segments such as female entrepreneurs and small businesses over the past two years, along with the aims to scale sustainable and critical infrastructure investments, particularly supporting Türkiye's manufacturing sector through export-oriented production companies and projects, increasing financial access for underserved segments and promoting trade and exports.
The IFC official said that in addition to the World Bank Group's $17 billion programs implemented in Türkiye, they would provide $18 billion in direct loans to the private sector over the next three years.
"This represents approximately a $35 billion temporary financial package. This package represents a significant expansion in our Türkiye program and responds to the strong commitment shown by the government to reestablish macroeconomic stability," said Schloemer.
"We also plan to deepen our engagement in other areas such as the export sector," she added.
Schloemer also noted that the International Bank for Reconstruction and Development (IBRD) approved $1 billion in financing in June 2023 to help repair rural homes and basic public services for people affected by earthquakes. She underscored that the project would benefit 11 provinces, which were most damaged by the earthquake and where approximately 14 million people live.
Parallel to this, she said they worked to secure private sector financing for both early relief and long-term reconstruction efforts.
"Following the earthquakes, through our private sector partners in finance, manufacturing and infrastructure sectors, we committed to providing approximately $1 billion over the next two years to support relief and reconstruction efforts in the region," she said.
Furthermore, Schloemer acknowledged it was among their priorities not only to assist with the reconstruction but also to support households affected by earthquakes through Turkish banks.
"We are working with local banks to alleviate the impact on the finance sector by meeting short-term liquidity needs, and we are examining the feasibility of using capital market instruments to support long-term restructuring efforts," she noted.
At the same time, she also mentioned the financing package of approximately $680 million provided to medium and small businesses (SMEs) in the region and to a manufacturing company.
"We announced a financing package of up to $530 million to be transferred through five Turkish private banks. As IFC, we aim to support banks by providing liquidity to help them lend in earthquake-affected provinces," noted Schloemer.
"We provided financing packages to five banks, including $71 million to Akbank, $119.5 million to DenizBank, $109.5 million to QNB Finansbank, $150 million to Türkiye Iş Bankası and $80 million to Yapı Kredi."
"The financing package also includes $220 million from five separate international financial and development institutions. In addition to this, we provided Sanko Holding with $150 million in green credit," she concluded.