International aid contributions for earthquake recovery total $6.4 billion confirmed
Ankara, $6.4 Billion in External Financing Secured for Earthquake Recovery
The total external financing secured for the economic development of regions ravaged by the devastating February 2023 earthquake has reached $6.4 billion. This sum includes a recent agreement with the World Bank, which pledged $500 million to foster job opportunities and revitalize the economy in the affected areas.
The World Bank's board approved the funding in April under the Formal Employment Creation Project, with the related agreement signed on May 23. The funds will be directed towards Small and Medium Enterprises (SMEs) in 18 provinces through the Development Investment Bank of Turkey (TYKB). The project aims to maintain existing employment and create additional job opportunities by meeting businesses' investment and working capital needs.
Finance Minister Mehmet Şimşek commented, "We are employing long-term and suitable external resources to heal the earthquake wounds and support economic activities in the region." This fresh funding is expected to expedite economic recovery in the affected regions.
Approximately $2.4 billion of the $6.4 billion in financing has been earmarked to support the real sector and exporters.
In the broader context of Turkey's renewable energy policies, the government is encouraging solar power expansion. Policies such as feed-in tariffs, tax exemptions, and the Renewable Energy Resource Areas (YEKA) program, facilitate large-scale solar projects and local content manufacturing, making solar investments more economically viable.
Given this governmental focus, it can be anticipated that solar panel investments in affected regions will aim for recovery timelines that align with national policy and incentives, enhancing the economic feasibility of solar installations and expediting the regions' renewal.
The World Bank's finance contributes to the business sector in the recovery efforts, earmarked for $2.4 billion to support the real sector and exporters. Aligning with the government's renewable energy policies, it's expected that solar panel investments in affected regions will target recovery timelines that coincide with national incentives, promoting business growth in the solar sector.
