Türkiye's economy chief on Friday said he would continue his engagements with investors next week in the Gulf countries after concluding a series of discussions in France, signifying the government's determination to attract foreign capital to bolster its policy overhaul.
Treasury and Finance Minister Mehmet Şimşek, a highly respected technocrat with Wall Street experience, was appointed by President Recep Tayyip Erdoğan in June to lead a shift to more convenient economic policies.
The new economy team named after the May elections reversed the yearslong easing cycle and aggressively hiked interest rates to conquer stubbornly high inflation, rebuild foreign currency reserves, and curb the chronic current account deficit.
During his trip to France on Thursday, Şimşek met key figures from the country's business community during meetings organized by the country's most prominent financial institutions.
In a statement on social media platform X, formerly known as Twitter, he said he had outlined Türkiye's economic outlook and policies during talks with France's biggest business association in a meeting hosted by BNP Paribas. That was followed by a conference organized by Societe Generale with funds and bank executives overseeing around 4 trillion euros ($4.2 trillion).
Şimşek separately held talks with International Energy Agency (IEA) President Fatih Birol, discussing prospects in the global energy market.
A meeting with his counterpart Bruno Le Maire delved into further enhancing bilateral trade and mutual investments between Türkiye and France, the minister said.
"Our meetings with investors will continue next week with visits to Gulf countries. These visits aim to present our country's new (medium-term) program and attract sustainable investments that will generate employment and high-added value," Şimşek wrote on X.
The economic administration actively engages with investors, presenting the new economic program to reverse the long trend of foreign capital outflow. Recently, there has been a notable surge in foreign investors' interest in the Turkish markets.
Although this heightened interest translates into a modest influx of capital, the economic administration anticipates a gradual increase over time. Alongside discussions on the capital markets, there are also talks focused on direct investments.
Since June, the country's central bank hiked its key policy rate by a combined 2,150 basis points to rein in inflation, which rose 61.5% over 12 months ending in September.
Authorities have also raised taxes to limit budget deficits, cooled domestic demand, begun rolling back a $123 billion savings scheme that sought to protect Turkish lira deposits from depreciation against foreign currencies, and raised foreign exchange reserves to head off any possible current account deficit crisis.
In addition to visits to key economic hubs like the U.S., U.K., Germany and France, Şimşek conducted numerous important meetings at the International Monetary Fund (IMF) and World Bank annual gatherings in Morocco last week.
Next week, Şimşek will fly to Abu Dhabi, Doha and Riyadh, marking his second tour of these countries since assuming office.
During the visit, significant progress is expected in implementing the initial phases of the $50 billion investment and financing agreements signed with the United Arab Emirates during Erdoğan's tour of the region in mid-July.
Looking ahead, the economic administration is planning an East Asia visit before the year concludes, demonstrating a proactive approach to fostering international partnerships.
Meanwhile, Şimşek on Friday separately elaborated on financing extended to Türkiye by the World Bank and the Asian Infrastructure Investment Bank (AIIB).
AIIB has added 150 million euros to the 3.3 billion euros funding to Türkiye over the medium term.
The World Bank, on the other hand, is extending additional financing of 77.8 million euros and $4.95 million for green and sustainable development.
"The financial support provided by international financial institutions demonstrates their confidence in Türkiye's economy and the goals of the medium-term program," Şimşek said.
The minister elaborated on the specifics of the financial support, detailing agreements made with the World Bank for the "Land Management Infrastructure Project for Green and Sustainable Development."
The initiative, funded with 77.8 million euros, aims to create three-dimensional city models, update cadastre data and support property valuation efforts.
The $4.95 million grant is earmarked for the Climate Change Directorate, which will implement the "Türkiye Carbon Market Development Project" to enhance the country's carbon pricing mechanism.
The agreement with the AIIB, signed in September, will channel the 150 million funding as part of the "Istanbul Seismic Risk Reduction and Emergency Preparedness Project (ISMEP)."
The project aims to prepare the Turkish metropolis for a potential earthquake, given it lies just north of a faultline crossing the Marmara Sea in the northwest of the country.
The Istanbul Governorate Project Coordination Unit will coordinate the funding, which will primarily be used to ensure that public buildings, especially schools, are earthquake-proof.
Şimşek attended the AIIB's annual meeting in Egypt last month. He highlighted that the bank has provided its members $43.6 billion in financing since its establishment, with Türkiye receiving $4 billion as the second-largest beneficiary.
Additionally, following the announcement of the medium-term program, the World Bank announced it would extend an additional $18 billion in funding to double its exposure to Türkiye to $35 billion over three years.
Out of the additional financing, $6 billion is intended for the public sector and the remaining $12 billion is earmarked for the private sector.
