Lightning announced! Foreign exchange is coming… 5-year cooperation came into force – Last Minute Economic News

Minister of Treasury and Finance Mehmet Şimşek made an evaluation about the cooperation studies carried out with the World Bank.

Reminding that 1.5 billion dollars of financing was recently obtained from the World Bank for 3 separate projects, Şimşek said that this resource will be used to ensure Turkey’s energy supply security and to support the green transformation process of businesses.

Şimşek pointed out that an important program has been signed with the World Bank, which forms the basis of financial and technical cooperation in the period covering the 2024-2028 fiscal years, and said, “Within the scope of our strong cooperation with the World Bank, a financial cooperation program for the next 5-year period has been created. The first three of the World Bank “Country Partnership Framework (CPF) Program, which will provide an additional 18 billion dollars of financing to our country within the year, was discussed at the Board of Executive Directors of the Bank and entered into force,” he said.

“Türkiye RANKS 3RD IN SUITABLE CONDITIONAL LOANS”

Şimşek reminded that the World Bank, after the announcement of the Medium Term Program, decided to increase the amount of resources it transferred to Turkey to 35 billion dollars by adding another 18 billion dollars to the ongoing 17 billion dollar program.

Stating that Turkey ranks 3rd in the world and first in its region among the countries that use loans with favorable conditions from the Bank, Şimşek also shared the details of the new program.

Minister Şimşek stated that the program, prepared in line with Turkey’s 12th Development Plan priorities, will focus on the areas of high and sustainable productivity increase, inclusive services and strengthening employment and resilience, and stated that these topics reveal areas of cooperation that can be developed with the World Bank.

“SUPPORT WILL BE PROVIDED TO MANY FIELDS”

In this context, Şimşek emphasized that it is planned to provide World Bank support in many areas such as disaster resilience, energy, green transformation, combating climate change, export support, real sector, infrastructure, logistics, industry, agriculture, education, health and inclusion, and made the following evaluation:

“The program will be implemented jointly by the World Bank institutions, the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). The impact of the bank’s activities in our country will be increased. In this process, focusing on the solution of country-specific challenges, “An approach that aims to increase private sector participation and achieve holistic results in operations will be followed.”

“IT WILL BE USED IN DEVELOPING THE PRIVATE SECTOR”

Referring to the additional 18 billion dollar financing package that the World Bank will offer to Turkey within 3 years within the scope of the Country Cooperation Framework Program, Şimşek said, “6 billion dollars of the said amount is expected to be provided from IBRD and 9 billion dollars from IFC. MIGA is expected to provide short-term financing.” “By mobilizing 3 billion dollars through guarantees, it is anticipated that approximately two-thirds of the financing to be provided within 3 years will be used to develop the private sector.” he said.

In addition, Şimşek stated that the technical and analytical studies on macro and sectoral basis carried out by the World Bank will continue in the new program period and said:

“In addition, ways will be sought to establish new partnerships with other development stakeholders in order to support our country’s development goals. The World Bank has been one of the most important stakeholders in achieving our country’s development goals for more than 70 years. The new Country Cooperation Framework further strengthens our partnership with the Bank. This cooperation will “It is also an indication of the World Bank’s confidence in our country’s next 5-year period and our economy and investment program. The flow of resources to our country will continue to increase in the new period.”