World Bank Expands Financial Support to Turkey Amid Economic Reforms

The World Bank is negotiating with Turkey to increase its financial assistance beyond the existing $35 billion commitment through 2028. This move follows a previous increase from $17 billion to $35 billion aimed at bolstering Turkey's macroeconomic stability. Turkey and the World Bank recently signed a $1.9 billion financing agreement.

The World Bank is in discussions with Turkey to enhance its financial aid package, which currently stands at $35 billion through 2028, according to an informed source. The confidential talks, first revealed to Reuters, suggest an imminent increase, though officials from the World Bank and Turkey's finance ministry have not commented.

Last year, the World Bank elevated its financial support to Turkey from $17 billion to $35 billion. This decision was motivated by Ankara's strong commitment to restoring macroeconomic stability, as stated by Humberto Lopez, the World Bank's Turkey director. The increased funding aligns with Turkey's steps toward economic reform.

This week, Turkey and the World Bank also finalized a $1.9 billion financing agreement covering four projects. These investments primarily target renewable energy, flood management, climate change, and export sector support. Turkish Finance Minister Mehmet Simsek participated in the G20 and World Bank meetings in Washington.

(With inputs from agencies.)