Türkiye signs development financing agreements worth $5.1B at COP31

Detailed summary

Ten agreements with four multilateral banks will support climate action, disaster-resilient infrastructure, industrial modernisation as well as green and digital transitions.

Türkiye has signed 10 agreements worth $5.1 billion with four multilateral development banks at the COP31 climate summit in Antalya, Finance Minister Mehmet Simsek said on Thursday.

The agreements involve the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), World Bank and Islamic Development Bank.

Speaking at a joint signing ceremony, Simsek said the financing would help build a greener and more resilient economy through projects supporting employment, industrial modernisation and green and digital transitions.

Türkiye has secured around $50 billion in external financing from development partners since 2023, he said.

The funding has supported post-earthquake reconstruction, railways, decarbonisation, renewable energy, resilient hospitals, exporters and small businesses.

Simsek said sound economic policies and structural reforms were essential to attracting long-term investment, adding that national budgets alone could not meet the financing needs of the transition.

ADB President Masato Kanda outlined a €620 million ($687 million) agreement to build disaster-resilient hospitals, strengthen health services and train doctors.

Another $500 million will be channelled through VakifBank to expand long-term financing for small businesses, particularly in less-developed and earthquake-affected provinces, as well as for women entrepreneurs.

Simsek said the agreements would bring ADB's financing support to Türkiye to $3.1 billion.

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