Asian Infrastructure Investment Bank to Provide $5 Billion in Financing to Turkey

February 17, 2025 BTT

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The Ministry of Treasury and Finance has signed a memorandum of understanding with the Asian Infrastructure Investment Bank (AIIB). Under this agreement, AIIB will provide approximately $5 billion in financing support for public projects over the next three years.

The written statement from the Ministry highlights that this agreement strengthens the cooperation with AIIB, stating: “The approximately $5 billion in financing AIIB plans to provide for public projects in our country over the next three years (2025-2027) has been formalized today with the signing of the Memorandum of Understanding during the meeting between our Minister of Treasury and Finance, Mr. Mehmet Şimşek, and AIIB President Mr. Jin Liqun in AlUla. With this memorandum, a multi-year framework with AIIB has been established for the first time, further strengthening our collaboration.”

Development-Focused Projects in Various Sectors

The signed memorandum will reinforce the strong partnership between Turkey and AIIB, contributing significantly to projects focused on sustainable and green development. Projects in energy, transportation, the real sector, export financing, healthcare, and water management, among other areas, will be supported. In addition to the financing provided for the public sector, it is also expected that $5 billion in additional financing will be provided for private sector projects in the future.

This will increase the diversification of resources for Turkey’s real sector and exporters, offering concessional financing for infrastructure and superstructure projects in various sectors and regions. Thanks to the strong collaboration and efficient project financing management of the Ministry of Treasury and Finance with Multilateral Development Banks, Turkey has become a preferred development partner. By the end of 2024, the active portfolio of these institutions is expected to reach $35 billion, a significant indicator of trust in our economic program.

AIIB Has Provided $5.5 Billion in Financing So Far

AIIB, an international financial institution headquartered in Beijing with 110 members, has provided a total of $5.5 billion in financing to Turkey since 2018. This makes Turkey the second-largest recipient of AIIB financing, after India.

Turkey holds a $2.6 billion stake in AIIB, giving it a 2.5% voting share, making it the bank’s 10th largest shareholder and the 7th largest among regional countries.