- EBRD loan to DenizBank offers financing to businesses and individuals affected by the earthquake
- Loan is part of the EBRD’s Türkiye Disaster Response Framework
- The region is still struggling to recover from the disaster
The European Bank for Reconstruction and Development (EBRD) is providing a loan of US$ 109 million to DenizBank in Türkiye, to expand financial opportunities for businesses and individuals affected by the earthquakes that devastated the country’s south-eastern region.
The loan is part of the Bank’s Türkiye Disaster Response Framework, which was launched in the aftermath of the earthquakes that caused more than 50,000 fatalities and more than US$ 100 billion in damage to the Turkish economy.
The affected region is still struggling to resume economic activities as businesses continue to face challenges with supply, demand and human capital.
The loan will help to ensure financial access for the region’s businesses facing these challenges while recovery and reconstruction efforts are under way.
The EBRD previously announced a €1.5 billion, two-year investment plan for the region, to lessen the economic impact of the disaster.
Arthur Poghosyan, EBRD Deputy Head of Türkiye, Financial Institutions, said: “We have always stood by our financial partners in Türkiye to help them deliver finance to sub-borrower segments and regions in need of financial support. We are confident that, as our longstanding partner, DenizBank will distribute these funds efficiently, and will be instrumental in allowing the region to recover and its people to rebuild their lives.”
Hakan Ateş, DenizBank CEO, said: “Since the earthquakes happened, we have devoted all our efforts to healing the wounds of people in the regions affected, with our uninterrupted banking services, financing resources and humanitarian aid. We are pleased to collaborate with the EBRD in our efforts to rebuild the areas affected by the earthquakes and stand by our people who need financial support.”
The €600 million Türkiye Disaster Response Framework, the first framework of its kind deployed in the EBRD regions, 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.
To date, the EBRD has invested more than €18 billion in various sectors of the Turkish economy, largely in the private sector.