Türkiye signs $5.1B deals with four development banks at COP31

Agreements signed at COP31

Finance Minister Mehmet Simsek said Thursday that Türkiye had signed 10 agreements worth $5.1 billion with four multilateral development banks during the COP31 climate summit in Antalya. At the joint signing ceremony, he linked the financing to projects supporting employment, industrial modernization, and green and digital transitions.

The lenders are the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), World Bank and Islamic Development Bank. Simsek said the financing would help build a greener and more resilient economy.

External financing and economic reforms

Türkiye has secured about $50 billion in external financing from development partners since 2023, Simsek said. The funding has supported post-earthquake reconstruction, railways, decarbonization, renewable energy, resilient hospitals, exporters and small businesses.

Simsek emphasized that sound economic policies and structural reforms were essential for attracting long-term investment. He said national budgets alone could not cover the transition’s financing needs.

ADB and AIIB commitments

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 provided through VakifBank to expand long-term financing for small businesses.

The financing will focus particularly on less-developed and earthquake-affected provinces and on women entrepreneurs, while Simsek said the agreements would bring ADB financing support to $3.1 billion. AIIB President Zou Jiayi announced $1.9 billion in financing, including $1.6 billion for Türkiye’s climate action acceleration program and additional financing.

The remaining $300 million will be channeled through Turk Eximbank to support businesses’ green transition and resilience to economic shocks.

World Bank financing

World Bank Group President Ajay Banga said three agreements totaling $1.5 billion would support cities, agriculture and industry. The figure excludes additional private investment that the institution seeks to mobilize.

Banga said the group’s portfolio in Türkiye had reached $32 billion, making it one of its largest worldwide. He also highlighted the country’s economic transformation during a partnership spanning more than 75 years.