- EBRD loan to İşbank for earthquake response
- US$ 109 million loan to target those affected in south-eastern region
- Loan is part of the EBRD’s Türkiye Disaster Response Framework
The European Bank for Reconstruction and Development (EBRD) is providing a loan of US$ 109 million to Turkiye İş Bankası (İşbank), the largest private bank in Türkiye, 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 damage 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.
By providing financial support to businesses and individuals, the loan aims to address the most immediate funding needs of the local population in those cities, bringing financial relief to the region’s private sector.
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: “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 €600 million Türkiye Disaster Response Framework, the first such framework 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, including the loan to İşbank, close to US$ 350 million has been allocated to the EBRD’s 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 invested more than €18 billion in various sectors of the Turkish economy, largely in the private sector.