Ankara: The European Bank for Reconstruction and Development (EBRD) invested a record £2.7 billion ($3.2 billion) last year in Trkiye, marking it as the bank’s largest country of operation by annual investment, according to the bank’s managing director for Trkiye and the Caucasus, Elisabetta Falcetti.
According to Anadolu Agency, Falcetti attributed the robust investment performance to several factors, including a growing appetite in the Turkish private sector to invest, increased competitiveness of domestic firms, and support for the green transition. The development of human capital also played a significant role in enhancing investment performance.
Falcetti highlighted the launch of the ‘Youth in Business’ program in Trkiye as a significant achievement. The program, a pound 250 million ($298.7 million) initiative, is designed to support the growth of SMEs owned or managed by young entrepreneurs, complementing the existing ‘Women in Business’ program, which celebrated its 10th anniversary last year.
Another crucial aspect of the EBRD’s operations is its continued support for reconstruction in earthquake-affected regions in Trkiye. Following the devastating earthquake in 2023, the EBRD announced a response package focusing on the reconstruction of municipal services and support for private sector clients operating in the affected areas. The bank has exceeded its initial £1.5 billion ($1.7 billion) earthquake response commitment.
Despite 2025 being a challenging year due to market volatility and external shocks, Falcetti noted that the Turkish private sector’s investment appetite remains strong, with 90% of the $3.2 billion investment directed towards private companies. This reflects the resilience and dynamism of Turkish businesses, including SMEs, which have learned to manage crises effectively.
Since commencing operations in Trkiye in 2009, the EBRD has cumulatively invested more than £23 billion ($27.4 billion). The current active portfolio stands at approximately £8 billion ($9.5 billion), with over 80% directed to the private sector, underscoring Trkiye’s importance to the EBRD.
The EBRD collaborates with partner financial institutions in Trkiye to facilitate on-lending for specific purposes, including the Green Economic Financing Facility (GEFF), the Women in Business, Youth in Business, the Digital Transformation Financing Facility (DTFF), and the sustainable Supply Chain Financing Facility.
Falcetti elaborated on the EBRD’s $1.7 billion earthquake response package, which covers various projects, including loans to municipalities like Hatay and Adiyaman for rebuilding water/wastewater networks and sewerage systems, and to Mersin municipality for strengthening wastewater systems. The bank also provided key loans to private sector entities like Enerjisa Energy for network reconstruction and renewable energy transition.
Falcetti emphasized the importance of achieving macroeconomic stability for attracting investors, noting the positive results of Trkiye’s economic team in focusing on disinflation. The EBRD’s new country strategy aligns with Trkiye’s government priorities, including supporting human capital development and regional integration.
Trkiye’s strategic geographical position as a bridge between Asia and Europe is a focal point for the EBRD’s projects in transport, energy, and digital integration. Falcetti expects Trkiye’s economy to grow by around 3.5% in 2026, with revised figures to be announced in February.
Looking forward, the EBRD plans to surpass last year’s record investment level in 2026. The bank’s Trkiye Industrial Decarbonization Investment Platform, launched with the Turkish Industry and Technology Ministry and the World Bank, aims to invest up to $5 billion by 2030 to decarbonize industries such as aluminum, cement, steel, and fertilizers. This initiative is part of a broader effort to assist heavy fossil fuel users in greening their activities and enhancing competitiveness in export markets with carbon pricing mechanisms.