Treasury and Finance Minister Mehmet Şimşek announced Wednesday the establishment of a new fund called the "Türkiye Green Fund" (TGF) that would provide financing for green transformation activities.

Speaking to Anadolu Agency (AA), the minister stated that they continue to develop new projects in close collaboration with the World Bank.

In this context, Şimşek pointed out that a loan worth $155 million (TL 4.44 billion) would be channeled to the Industrial Development Bank of Türkiye (TSKB) for the Green Finance Project, which the World Bank has approved. He noted they would implement a new fund in the country as part of the project.

The minister explained that the project aims to provide green financing to businesses, promote investment in green technologies and diversify the financial sector.

"We are establishing a venture capital investment fund called the 'Türkiye Green Fund.' The fund will provide equity financing to green and innovative transformation companies," he said.

Furthermore, he said that the fund would be subject to the regulations of the Capital Markets Board (SPK), and the loan from the World Bank would also contribute to the fund.

"With the leverage effect of the $155 million loan from the World Bank, it is aimed to attract funding from other investors in the future and increase the size of the fund," he told AA.

In addition, by drawing attention to the importance that international organizations attach to Türkiye, the minister noted that the financial support provided by the World Bank "to our country reached a record level of $3.3 billion in 2023."

"This situation is the most concrete example of the World Bank's confidence and support for our country's development agenda and economic program," he added.

The minister also recalled that the World Bank has increased its financial exposure for Türkiye by an additional $18 billion, thus raising it to $35 billion and that this resource would cover the period of the next three years.