BAKU, Azerbaijan, December 25. The Asian
Infrastructure Investment Bank (AIIB) will provide $300 million in
sovereign-backed financing to Türkiye’s VakıfBank to support
post-earthquake reconstruction and expand climate-aligned lending
to small and medium-sized enterprises (SMEs), Trend reports citing
the bank.
The facility targets two of Türkiye’s key priorities following
the devastating earthquakes of 2023: rebuilding resilient
infrastructure and accelerating the country’s long-term climate
transition.
A significant portion of the funding will be used for the
reconstruction of affordable housing and essential social
infrastructure, including schools and healthcare facilities, in
earthquake-affected regions. The aim is to restore safe living
conditions and critical public services for communities hardest hit
by the disaster.
The remaining funds will be directed toward climate-focused
financing for SMEs, supporting investments in renewable energy,
energy efficiency, clean technologies and climate-resilient
business practices.
AIIB said the program would leverage VakıfBank’s nationwide
network and experience in development-oriented lending to generate
broad social and economic benefits, ranging from safer housing and
restored public services to stronger and more resilient
businesses.
The project aligns with AIIB’s priorities on green
infrastructure and private capital mobilization, and supports
Türkiye’s commitments under the Paris Agreement as well as several
UN Sustainable Development Goals, including sustainable cities,
climate action and decent work and economic growth.
