In 2020, the World Bank delivered record levels of support for Turkey with financing extended to nine critical development projects that totaled US$ 2.5 Billion. This financial support, coupled with a series of Knowledge Products, contribute to the implementation of Turkey’s 11th National Development Plan, as laid out in the World Bank Group’s Country Partnership Framework (FY17-23).With the new lending approvals in 2020, the active lending portfolio in Turkey reached US$ 6.7 billion in support of 21 projects.
Supporting Turkey’s Response to the COVID-19 crisis
Due to the unexpected COVID-19 pandemic in 2020 and the urgency of addressing the huge impacts of this crisis, the World Bank Group responded at a global level by putting together one of the largest sources of funding and knowledge to support developing countries to take broad and fast action in their pandemic response. It has made available $160 billion to help countries strengthen public health interventions, protect the poor and vulnerable, support businesses, and bolster economic recovery.
In Turkey, the Bank applied a rapid, flexible and strategic approach to support Turkey's emergency response. Five development projects were prepared rapidly during 2020 to help address different aspects of the crisis:
On April 24th, 2020, the Bank approved a $100 million project for an Emergency COVID-19 Health Operation, to be implemented by the Ministry of Health in support of Turkey’s actions to respond to the health impacts of COVID-19. The project was part of the World Bank’s $14 billion global Fast Track Facility geared specifically towards health sector support announced on April 2nd. The funding will strengthen Turkey’s capacity to avert the potentially high health and human cost of the COVID-19 pandemic by reinforcing mitigation and disease management. With the actions supported by this project the Bank hopes to contribute to saving lives.
On June 12th, 2020, the Bank approved a $273 million Long-Term Export Finance Guarantee Project to be implemented by Eximbank of Turkey which aims to improve access to longer-term finance for Export Oriented Small and Medium Enterprises and Export Oriented Mid-Cap Enterprises with the objective to preserve the export capacity of Turkey`s firms that have severely been affected by the crisis. The Project’s innovative design is consistent with IBRD’s strategy to crowd in the private sector financing with the help of the IBRD guarantee, the first-ever in Turkey, and to transition from traditional credit lines to more market-based, leveraged instruments to support financial intermediation.
On June 25th, 2020, the Bank approved a $160 million Safe Schooling And Distance Education Project to be implemented by the Ministry of Education to enhance the capacity of the education system to provide e-learning equitably to school-age children during and following the COVID-19 pandemic and future shocks.
On Auguste 28th, 2020, the Bank approved a $500 million Turkey Emergency Firm Support Project aimed at ensuring access to finance for private Small and Medium Enterprises (SMEs) affected by - or adapting to - the economic impacts of COVID-19. The project will be implemented through financial support provided to VakifBank and TKYB.
On December 18th, 2020, the Bank approved a $300 million Rapid Support for Micro and Small Enterprises during the COVID-19 crisis Project, to be implemented by KOSGEB, aimed at averting the closure of viable micro and small enterprises (MSEs) affected by the crisis and maintain their employment levels. The project supports Turkish people and firms by providing reimbursable support financing for manufacturing firms and other innovative young firms focusing on manufacturing, scientific research and development, and computer programming.