5-Year cooperation between the World Bank and Turkey enters into force

Minister Şimşek stated that within the framework of strong cooperation with the World Bank, a financial cooperation program for the next 5 years had been established, emphasizing that the “Country Partnership Framework (CPF) Program”, which the World Bank would provide an additional $18 billion in financing to our country within the first 3 years, had been put into effect after being discussed at the Bank’s Executive Directors Board.

Minister of Treasury and Finance Mehmet Şimşek evaluated the cooperation efforts with the World Bank to AA news agency. Şimşek recalled that a short while ago, financing of $1.5 billion was secured for 3 separate projects from the World Bank, stating that this funding would be used to ensure Turkey’s energy supply security and support businesses’ green transformation process.

Şimşek pointed out that an important program had been signed with the World Bank for the period covering the fiscal years 2024-2028, which formed the basis of financial and technical cooperation for the next 5 years under the strong cooperation with the World Bank. He said, “Under the strong cooperation with the World Bank, a financial cooperation program has been established for the next 5-year period. The Country Partnership Framework (CPF) Program, which the World Bank will provide an additional $18 billion in financing to our country within the first three years, has been put into effect after being discussed at the Bank’s Executive Directors Board.”

“Turkey ranks third in concessional loans”

Şimşek reminded that after the announcement of the Medium-Term Program, the World Bank decided to increase the amount of funds transferred to Turkey from $17 billion in the ongoing program to $35 billion by adding an additional $18 billion. Stating that Turkey ranked third in the world among countries using concessional loans from the Bank, and first in its region, Şimşek also shared the details of the new program.

Minister Şimşek stated that the program, prepared in accordance with the priorities of Turkey’s 12th Development Plan, would focus on increasing high and sustainable productivity, strengthening inclusive services, employment, and resilience, indicating that these headings revealed areas of cooperation that could be developed with the World Bank.

“Support will be provided in many areas”

Şimşek emphasized that within this scope, support from the World Bank was planned to be provided in many areas such as resilience to disasters, energy, green transformation, combating climate change, supporting exports, real sector, infrastructure, logistics, industry, agriculture, education, health, and inclusiveness. He made the following evaluation:

“The program will be jointly implemented by the World Bank Group 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. During this process, an approach focusing on solving country-specific challenges, increasing private sector participation, and achieving comprehensive results in operations will be pursued.”

“Will be used in developing the private sector”

Şimşek, referring to the additional $18 billion financing package that the World Bank would provide to Turkey within 3 years under the Country Partnership Framework Program, stated, “It is expected that $6 billion of this amount will be provided by IBRD, $9 billion by IFC. It is envisaged that approximately two-thirds of the financing to be provided within 3 years will be used in developing the private sector through the activation of $3 billion by MIGA through short-term guarantees.”

Furthermore, Şimşek stated that macro and sectoral technical and analytical studies carried out by the World Bank would continue in the new program period, stating:

“In addition, ways to establish new partnerships with other development stakeholders will be sought 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 over 70 years. The new Country Partnership Framework further strengthens our partnership with the Bank. This cooperation is also an indicator of the confidence of the World Bank in our country’s economy and investment program for the next 5 years. Resource flow to our country will continue to increase in the new period.”