ANKARA, March 23, 2010—The World Bank Board of Executive Directors today approved a Restoring Equitable Growth and Employment Programmatic Development Policy Loan (REGE-DPL) for Turkey in the amount of EURO 931 million (equivalent US$ 1.3 billion). With the REGE DPL, the World Bank supports Turkey’s program of financial crisis response and continuing reforms for shared medium-term growth.
“We are pleased to support the Government’s policies and program to promote equitable growth and employment, as Turkey emerges from the impact of the global financial crisis and returns to renewed growth this year,” said Ulrich Zachau, Country Director of the World Bank for Turkey. “We especially welcome the Government’s sound Medium-Term Program and Fiscal Plan, the continued implementation of Turkey’s path-breaking health and social security reform, and the strengthening of programs to improve access to education and training and job services. We look forward to continuing our partnership with Turkey to improve the lives of the Turkish people.”
Programs and actions taken by the Turkish Government in 2009 and 2010 have helped reduce the impact of the global financial turmoil and economic downturn in Turkey and facilitated the transition to renewed medium-term economic growth with shared benefits for the Turkish people. Such programs and actions range from sound fiscal-macroeconomic policies to measures that support small and medium-sized firms, help maintain and expand credit, and address unemployment. They also include continuing critical reforms essential for Turkey’s long-term economic competitiveness and growth, such as the ongoing implementation of health, social security, and public financial management reforms, and improvements in the investment climate. Today, economic growth is resuming in Turkey and unemployment has begun declining, although it will remain a key challenge over the medium term.
The REGE-DPL is a variable-spread Euro-denominated loan, with a final maturity of 19.5 years, including a grace period of 16 years.