Türkiye obtained billions of dollars in external resources, provided to various sectors in the country from international organizations, government institutions, export credit agencies and commercial creditors last year, a top economy official said Thursday, highlighting that these suggest a sign of confidence in the new economic program.
The amount of these resources reached $8.8 billion (nearly TL 264 billion), Treasury and Finance Minister Mehmet Şimşek was cited as saying.
“These resources are a sign of confidence in Türkiye and in our program based on transparency, consistency, accountability and predictability,” he told Anadolu Agency (AA).
Türkiye has embraced more conventional policymaking following elections in May last year, which saw the appointment of a new economic team by President Recep Tayyip Erdoğan. Şimşek took the post of finance minister while former U.S.-based bank executive Hafize Gaye Erkan took the reins of the Central Bank of the Republic of Türkiye (CBRT).
Erkan has spearheaded interest rate hikes totaling 3,400 basis points through December to tame inflation, which stood at 64.77% last month, according to the official data.
The governor was expected to deliver presentations on monetary policy, inflation and Turkish assets to investors in New York on Thursday during the inaugural “Investor Day” hosted by the bank.
Due to prior commitments in Ankara, Şimşek was expected to virtually participate in the meetings, set to be attended by over 200 high-level executives from the world’s largest investment funds and financial institutions.
The minister said some of the provided external resources will be instrumental in the reconstruction of 11 Turkish provinces damaged by powerful earthquakes last February and that $640 million was provided last Dec. 19-22 to support businesses in the affected region.
In this context, he mentioned that the $100 million in financing provided by the Islamic Development Bank (IsDB) Group to the Industrial Development Bank of Türkiye (TSKB) would be used to finance investments focused on revitalizing and strengthening economic activities in the affected provinces.
He also stated that the 20 billion Japanese yen ($137.5 million) in financing provided by the Japan International Cooperation Agency (JICA) would be used by the lender Small and Medium Enterprises Development Organization of Türkiye (KOSGEB) to support the capital of micro, small and medium-sized businesses in the provinces affected by the earthquake.
Şimşek also said the credit agency Japan Bank for International Cooperation provided $400 million in financing in the form of $200 million each to the Development and Investment Bank of Türkiye (TKYB) and the TSKB.
“These resources will be used to finance renewable energy efforts, energy efficiency and investments for water and waste management with advanced technology support, as we focus on revitalizing and strengthening the economic activity in the earthquake-stricken provinces,” he said.
Two powerful earthquakes struck 11 provinces in southeastern Türkiye causing extensive damage and killing and injuring tens of thousands of people. The government has said rebuilding could cost more than $100 billion.
Turkish press sources
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