4 days ago
World Bank approves $650m loan to help Turkey manage disasters and revive economy
The World Bank has approved a $650 million disaster management loan for Turkey, a key step to help the country revive its economy.
The loan facility will support the Istanbul Resilience Project, a long-term programme introduced last year and intended to protect economic activity, livelihoods and residents in the country's largest city, the Washington-based lender said in a statement on Friday.
World Bank data shows that Istanbul, home to about 15 million people, contributes a third of Turkey's gross domestic product, and any vulnerability from natural disasters, including earthquakes and climate shocks, would impede its progress, it said.
'The project will help to ensure that key public services can function during and after disasters, protect communities, and preserve economic continuity in the event of a major emergency,' the World Bank said.
The project has four pillars: emergency preparedness and response, public building resilience, technical assistance and contingent emergency response.
The last one, in particular, is dedicated to the rapid reallocation of project funds in the event of an emergency to support urgent recovery and reconstruction needs, the World Bank said.
'This project is vital to safeguard Istanbul's people and economy,' said Humberto Lopez, the World Bank's country director for Turkey.
'By strengthening emergency preparedness, modernising public infrastructure and supporting community resilience, Turkey is building a safer future for one of its most strategic provinces,' he added.
Turkey has embarked on a major economic revival programme following years of flagging activity, including battling chronic inflation in 2024.
Ankara has made moves to implement an turnaround, including raising interest rates to tame inflation – which have since steadily gone down – creating a new economic team and appointing a new central bank chief.
Maintaining or building new infrastructure will be central to the economic plan: the World Bank said that with Istanbul's public building stock ageing and emergency response capacity under strain, 'this investment will help ensure faster and more effective disaster response while strengthening infrastructure against seismic and climate hazards'.
'Ultimately, the project aims to protect millions of people and ensure the continuity of vital services across Istanbul,' it said.
This week, Turkish and Syrian business leaders convened to strengthen economic ties, with the head of the newly re-established Syria-Turkey Business Council saying that any fears about co-operation should be set aside in order to reap mutual benefits.
In May, Turkey said it was seeking more UAE investment in artificial intelligence amid a strengthening of relations between the two countries.
Turkey has also received credit rating upgrades from major agencies – including Moody's first such move in a decade – as they acknowledged the impact of the government's rebalanced economic strategy, improved governance and the tight monetary stance that has helped stabilise the nation's economy.
