Turk Eximbank, Asian bank ink $100M financing deal

Turkish export credit bank Turk Eximbank and the Asian Infrastructure Investment Bank (AIIB) have signed a $100 million financing agreement to support companies affected by the twin earthquakes that struck southern Türkiye on Feb. 6, Azernews reports, citing Anadolu Agency.

"Turk Eximbank has signed a facility agreement on 04.12.2023 with the Asian Infrastructure Investment Bank (AIIB) under the guarantee of the Turkish Treasury and Finance Ministry for an amount of $100 million with a maturity of 10 years," the bank said in a statement on Wednesday.

This loan is the first to be made under the terms of the $300 million support package, which includes a $100 million direct loan and a $200 million guarantee previously approved by AIIB.

The loan aims to finance Turkish export companies such as repair, maintenance, reconstruction, machinery replacement, and reinforcement resulting from the earthquakes.

Turk Eximbank General Manager Ali Guney said: "As the fruits of our banks work in 2023, we aim to bring long-term supranational funds worth more than $1.4 billion to our country in the first 6 months of the next year."

The transaction will enable Turk Eximbank to provide support to cover companies’ losses in the earthquake region while also accelerating the region’s economic recovery, Guney added.