The World Bank has approved 485 million US dollars of financing to help Turkish manufacturers invest in greener and more digital production, Treasury and Finance Minister Mehmet Şimşek announced on social media on Wednesday. Anadolu Agency (AA) and CNBC-e carried the announcement.
Who gets the money
The loan is for the Twin Transition in Industry Project, which the World Bank’s Board of Executive Directors has approved. Two state-owned lenders will pass it on to companies: Türk Eximbank, the country’s export credit bank, and VakıfBank will each receive 242.5 million dollars.
The money will finance investments under the Ministry of Industry and Technology’s Green Transformation and Digital Transformation programmes. The borrowers will be manufacturers that hold government investment incentive certificates. These include small and medium-sized enterprises (SMEs) as well as medium and large companies. The stated goals are to support sustainable production and the use of advanced technology and to make Turkish manufacturers more competitive in global supply chains.
Neither report gave the interest rate, the maturity or repayment terms. Şimşek described the financing only as long-term and on favourable terms.
Part of 10 billion dollars raised this year
Şimşek said the long-term, favourable-terms external financing secured this year now totals 10 billion dollars. He said the project fits the government’s economic programme and Medium-Term Programme. He also linked it to the priorities of COP31, the UN climate conference Türkiye will host in November. In his post he said the funds would help turn commitments into concrete action, and that cooperation with the World Bank would continue.
For businesses
The loans will go only to manufacturers with investment incentive certificates, and Türk Eximbank and VakıfBank will handle them. Companies interested in the scheme should check with these banks and the Ministry of Industry and Technology about eligibility. For the wider economic picture, see our report on Türkiye’s September trade figures.
Sources
- Dünya Bankasından 485 milyon dolar kaynak! Bakan Şimşek’ten yeşil ve dijital dönüşüm açıklaması (AA via Bigpara)
- Şimşek duyurdu: Dünya Bankası’ndan Türkiye’ye 485 milyon dolarlık finansman (CNBC-e)
Photo: Shiny Things / CC BY 2.0, via Wikimedia Commons
