World Bank and IFC Boost Support for Türkiye's Earthquake Recovery and Economic Stability

Jan 16, 2025 at 10:01 AM

The international financial community is stepping up its commitment to Türkiye's recovery efforts in the wake of recent natural disasters. The World Bank has pledged an additional $1 billion in financial assistance for 2025, bringing the total support to $4 billion aimed at rebuilding infrastructure and supporting development in the earthquake-affected regions of the country. This substantial investment will focus on critical areas such as healthcare, water distribution, and transportation systems, all of which are vital for long-term recovery.

In addition to the World Bank's contributions, the International Finance Corporation (IFC) is concentrating on fostering private sector growth in the impacted areas. The IFC's director for Türkiye and Central Asia, Wiebke Schloemer, emphasized the adaptability and resilience of local businesses, highlighting the country's strategic location and young workforce as key assets. The organization believes that these factors will drive economic recovery and attract foreign direct investment. Both institutions underscored the importance of stability and predictability in the Turkish economy, noting that ongoing structural reforms have begun to yield positive results, as evidenced by a decline in credit default swaps and improved investor confidence.

Türkiye's potential to serve as a crucial link between multiple nations through infrastructure projects like the Middle Corridor and the Yavuz Sultan Selim Bridge railway project underscores its strategic importance. The World Bank's financing for electrified railways not only aims to reduce carbon emissions but also to lower transportation costs between the East and West. As Türkiye continues to stabilize its economy and improve its business environment, it remains an attractive destination for investors seeking long-term opportunities in a rapidly developing market.