EBRD Provides US$110 Million Loan to QNB Finansbank for Post-Earthquake Recovery in Turkey

EBRD Provides US$110 Million Loan to QNB Finansbank for Post-Earthquake Recovery in Turkey

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) is providing a loan of US$110 million to QNB Finansbank in Turkey. The loan is part of the EBRD’s Türkiye Disaster Response Framework, launched after the devastating earthquakes in February. The funds will be used to address the immediate funding needs of businesses and individuals affected by the earthquakes, helping them to restructure existing loans and obtain additional financing. The EBRD has also announced a €1.5 billion investment plan for the region over the next two years to mitigate the economic impact of the disaster. QNB Finansbank, a long-standing partner bank of the EBRD, will support the recovery efforts in the affected regions.

(PRESS RELEASE) LONDON, 12-Jul-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is providing a loan of US$ 110 million to Türkiye’s QNB Finansbank for on-lending to businesses and individuals affected by the 6 February earthquakes that devastated the country’s south-eastern region.

The loan is part of the Bank’s Türkiye Disaster Response Framework, launched in the aftermath of the earthquakes, which caused over 50,000 fatalities and more than US$ 100 billion in damages to the country’s economy.

The proceeds of the loan will be used to remedy some of the damage to the region’s economy and seek to preserve the livelihoods and human capital of the affected cities. Businesses are still struggling to return to normal, as the pre-existing inequality of opportunity in the region worsens under the strain.

By providing financial support to businesses and individuals, the loan aims to address the most immediate funding needs of the local population in the affected cities, enabling borrowers to restructure existing loans and obtain additional financing as needed.

The EBRD has previously announced a €1.5 billion investment plan for the region over the next two years, to lessen the economic impact of the disaster.

The €600 million Disaster Response Framework, the first such framework deployed in the economies where the EBRD operates, aims to provide support for companies and individuals affected by the disaster, as well as new lending for companies participating in recovery and reconstruction efforts in the area, strengthening the private sector’s role in disaster response.

Arthur Poghosyan, Deputy Head of Türkiye, Financial Institutions at the EBRD, said: “We say that we are in the business of changing lives, but this time around, I am proud to say that we are investing in rebuilding lives. The EBRD continues to stand with the private sector in Türkiye – not only in times of success, but also in times of crisis. Our hearts are with the people of the region, who suffered tremendous losses, and we are confident that with QNB Finansbank’s partnership, this funding will go towards reclaiming the economic well-being they all deserve.”

Yeliz Ataay Arıkök, Treasury Sales and International Banking Director at QNB Finansbank, said; “At QNB Finansbank, we have always stood by our customers financially and morally. This loan agreement we have signed with the EBRD is an indicator of this. It is very important for us to contribute to the recovery of lives damaged by the earthquake with financial support for individuals and businesses in our affected regions. With this financing, we want to help businesses and individuals in the region to heal their wounds faster, meet their urgent financing needs and become the leading bank in ensuring sustainable prosperity for the future. We are very happy to add a new element to our earthquake-focused collaboration, to be a pioneer in the regeneration of sustainable life in the region.”

QNB Finansbank is the sixth-largest private Turkish bank and a long-standing EBRD partner bank in the country.

To date, the EBRD has invested more than €18.1 billion in various sectors of the Turkish economy, largely in the private sector.

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SOURCE: EBRD