EBRD Extends US$ 109 Million Loan to Türkiye İş Bankası for Earthquake Recovery

EBRD Extends US$ 109 Million Loan to Türkiye İş Bankası for Earthquake Recovery

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) is extending a US$ 109 million loan to Turkiye İş Bankası (İşbank), the largest private bank in Türkiye, to aid businesses and individuals affected by the devastating earthquakes that hit the south-eastern region on 6th February. The loan is part of the EBRD’s Türkiye Disaster Response Framework, aiming to support the region’s economic recovery and preserve livelihoods. The funding will address immediate financial needs, bringing relief to the private sector in the affected cities. The EBRD has previously committed to a €1.5 billion investment plan for the region to lessen the disaster’s economic impact.

(PRESS RELEASE) LONDON, 14-Jul-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, announces that it has extended a US$ 109 million loan to Turkiye İş Bankası (İşbank), the largest private bank in Türkiye, to support businesses and individuals impacted by the devastating earthquakes that struck the country’s south-eastern region on 6th February.

This loan is an integral part of the EBRD’s Türkiye Disaster Response Framework, a comprehensive initiative launched in the aftermath of the earthquakes that resulted in over 50,000 fatalities and inflicted more than US$ 100 billion in economic damage to the country.

The funds from this loan will be dedicated to alleviating the economic consequences in the affected region and preserving the livelihoods and human capital of the impacted cities.

The primary objective of the loan is to address the urgent financial needs of local businesses and individuals in the affected cities, providing essential financial relief to the region’s private sector.

As part of its commitment to support the region, the EBRD previously unveiled a €1.5 billion, two-year investment plan to mitigate the economic impact of the disaster.

Arthur Poghosyan, EBRD Deputy Head of Türkiye, Financial Institutions, said: “Our rapid progress in transactions under the Türkiye Disaster Response Framework is vital to the recovery and reconstruction of the region. We are confident that as our long-standing partner, İşbank will disburse these funds efficiently and successfully to those in need of financial relief while they are recovering their economic well-being.”

The Türkiye Disaster Response Framework, a pioneering initiative in the EBRD regions, is designed to provide assistance to companies and individuals affected by the disaster. Additionally, the framework offers new financing opportunities for enterprises engaged in recovery and reconstruction efforts, strengthening the private sector’s pivotal role in disaster response. To date, including the loan to İşbank, the EBRD has allocated close to US$ 350 million to its partner banks under this framework.

İşbank Deputy Chief Executive Gamze Yalçın said: “At İşbank, we are glad to further strengthen our long-lasting cooperation with the EBRD through this loan agreement, which carries great importance in terms of supporting the affected region. The EBRD’s invaluable support for theTurkish economy and the affected region under the DRF is highly appreciated. İşbank Group, with its own inclusive TRY 10 billion disaster package, will also continue to support the region with this new facility.”

To date, the EBRD has made significant investments totaling over €18 billion in various sectors of the Turkish economy, with a primary focus on supporting the private sector.

Media contact:

Tel: +44 207 338 7805
Email: press@ebrd.com

SOURCE: EBRD