Istanbul, Türkiye, 5 December 2023 – In a major development for Türkiye's post-earthquake recovery efforts, the Islamic Development Bank (IsDB) Group and the Development and Investment Bank of Türkiye (TKYB) have formalized a US$200 million financing facility/arrangement to support businesses in the provinces affected by the disaster. This significant move, part of the IsDB Group’s Food Security Response Program (FSRP), aims to support the Post-Earthquake Recovery and Agri-food Support (PERAS) project in Türkiye. In addition to the IsDB Group financing from IsDB and the International Islamic Trade Finance Corporation (ITFC), funds from the OPEC Fund have also been mobilized for this project, through the Arab Coordination Group’s Food Security Action commitment.
The signing ceremony, held at TKYB headquarters in Istanbul, was witnessed by IsDB President and Group Chairman, H.E. Dr. Muhammad Al Jasser, and Türkiye’s Deputy Minister of Treasury and Finance H.E. Osman Çelik. The official IsDB financing agreements were signed by Dr. Walid Abdelwahab, Director of IsDB Group Regional Hub Türkiye, and TKYB CEO, Mr. İbrahim Öztop and Executive Vice President, Özlem Cinemre, followed by the signing with ITFC represented by Eng. Hani Salem Sonbol, CEO ITFC In parallel, the Director of IsDB Group Regional Hub Türkiye also signed the guarantee agreement with Mr. Kerem Dönmez, Director General of Foreign Economic Relations of the Ministry of Treasury and Finance.
The PERAS project is designed to revitalize Türkiye’s agriculture and agri-food sectors in the 17 provinces most affected by the February 2023 earthquakes. This includes the enhancement of food security, support for resilient agricultural value chains, and promotion of sustainable farming and food production systems.
“Today marks a significant milestone in our enduring partnership with Türkiye. With this US$200 million agreement, we are not just funding a project; we are investing in the resilient spirit of the Turkish people. This initiative is crucial in rebuilding and revitalizing the earthquake-affected areas, especially in the agriculture and agri-food sectors. Our solidarity with Türkiye in these challenging times is unwavering, as we collectively turn these challenges into opportunities for sustainable development and resilience. I am also happy that the IsDB has brought in our Strategic Partner-the OPEC Fund to join the IsDB Group in supporting this key project’’ Dr. Al Jasser said.
H.E. Osman Çelik Türkiye’s Deputy Minister of Treasury and Finance expressed that “IsDB has been an important partner within the framework of our development agenda. We are very glad for our fruitful collaboration. Post Earthquake Recovery and Agrifood Support Project will serve the earthquake-affected region by supporting the economic recovery of agriculture and agrifood sectors.”
On his part ITFC CEO Eng. Hani Salem Sonbol remarked, ‘’We are deeply committed to supporting Türkiye's recovery efforts from the devastating earthquakes. Our contribution of US$100 million aims to finance the import and pre-export needs of Turkish companies in critical sectors, including food security, agriculture, and earthquake-affected enterprises, reflects ITFC's ongoing dedication to fostering sustainable economic growth and food security. This joint financing resembles the resilient spirit of the Turkish people and a testament to the strength of international collaboration in times of need."
Mr. İbrahim Öztop, CEO of TKYB, also commented on the significance of this collaboration stating "This comprehensive financing package provided in collaboration with IsDB, ITFC, and OPEC Fund is a milestone in our efforts to address the challenges posed by earthquakes and the ongoing need for food security. We are extremely grateful for this collaboration that will contribute to the recovery and growth of our country.
The funds will be strategically utilized to support a range of initiatives within the PERAS project. These initiatives include rebuilding critical agricultural infrastructure, enhancing agri-food processing and distribution capabilities, and implementing innovative agricultural technologies to improve productivity and sustainability.
The investment is also aimed at developing robust market linkages to ensure the long-term viability and growth of Türkiye's agricultural sector, thereby contributing to the overall economic recovery of the earthquake-affected regions.
Note to Editors:
About Islamic Development Bank Group (IsDB) and Türkiye Relations:
To date, the Islamic development Bank Group has provided nearly US$ 12.6 billion to Türkiye through more than 554 socio-economic development projects to date. These projects encompass a wide range of sectors, with key footprints in transport, health, education, clean and renewable energy, energy security, food security, infrastructure, international trade, private sector development, SMEs, Islamic finance, and insurance. Notable achievements include Professor Dr. Tascioglu City Hospital in Istanbul, the most recent high-speed train sets operating between Istanbul, Ankara, and Konya, and diverse renewable energy plants across Türkiye in locations like Bingöl, Manisa, and Catalca. These examples highlight the half-century-long successful development cooperation between the Government of Türkiye and IsDB.
About Development and Investment Bank of Türkiye (TKYB):
Supporting development initiatives in every area needed by Türkiye since 1975, the Development and Investment Bank of Türkiye (TKYB) contributes to competitive and efficient production for a stable and robust economy with its international reputation and funds it raises. Focused on financing sustainable development in line with the 11th Development Plan and the United Nations Sustainable Development Goals, the Bank provides financing to businesses in various sectors, including industry, tourism, energy, education, and health.
About the International Islamic Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided over US$70 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.