Turkey's Equitable Growth and Employment Program Attracts World Bank Support

May 5, 2011

WASHINGTON, May 5, 2011 - The World Bank Board of Executive Directors today approved a Second Restoring Equitable Growth and Employment Programmatic Development Policy Loan (REGE-DPL2) for Turkey in the amount of EURO 506.1 million (US$ 700 million equivalent).

The program of the Turkish Government supported by the REGE DPL series includes critical legal, institutional, and structural reforms to advance Turkey’s business climate and broader competitiveness and growth agenda, while carrying forward the ongoing public sector reform agenda.  The second operation in the series, REGE DPL 2, supports specific policies implemented since 2010 in three broad areas:

  • Business climate reforms to improve competitiveness and employment, including in particular the enactment of the new Commercial Code, civil procedures law, and Code of Obligations;
  • The implementation of major programs for Turkey’s people to build their skills and human capital, including in particular the provision of Turkey’s universal health insurance in a fiscally sustainable manner and the expansion of pre-school education;
  • Reforms to strengthen further the efficient and transparent provision of high quality public services, including the new Turkish Court of Accounts (TCA) law and the new State Aid law.

“Overcoming the impact of the 2008-2009 global financial crisis faster than most countries, Turkey achieved remarkable economic growth and also brought down unemployment and inflation in 2010,” said Ulrich Zachau, Country Director of the World Bank for Turkey.“The Government used this opportunity to proceed with several fundamental economic reforms, most prominently the adoption of Turkey’s new Commercial Code and the continued implementation of the Health Transformation Program. We are very pleased to support these achievements. Turkey now has an excellent basis for advancing its economic agenda even further—including already planned reforms to continue strengthening job creation and flexibility, education, skills training, and health care, foster innovation, deepen local capital markets, and promote clean, efficient, and secure energy. This agenda, along with continued macroeconomic stability and a focus on gradually increasing domestic savings, I believe, will help Turkey realize its ambitious goals for robust long-term economic growth and for improving the lives of all Turkish people.”

The REGE-DPL 2 is a Flexible Loan at 6 month EURIBOR for euro plus variable spread, with a 26.5 year maturity and 9 years of grace period with level repayment of principal.

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