Turkey

The European Investment Bank has been at the forefront of investment in Turkey since the mid 1960s and remains committed to working with public and private sector promoters in the future. The EIB's mission is to support the country's economic development as Turkey moves towards integration into the EU.

Total lending in the country as of December 2006, stands at EUR 6.8 billion (of which EUR 4.9 billion since 2001). Beneficiaries of EIB funds include the public and private sectors: central and local government, local banks and industry, as well as foreign investors. Financing of SMEs and investment industry and infrastructure is facilitated through cooperation with local financial intermediaries. Activity in other sectors, such as investment in Human Capital and Research and Development, will widen the scope for cooperation during the accession period.

Outlook for Accession

EU Accession negotiations with Turkey began in October 2005. Against this background, the Bank will step-up its activity in terms of volume and, more importantly, in terms of sectors covered and instruments utilized. Reaffirming EIB support for the accession process, the Bank is currently preparing projects in Turkey in the following areas:

• Support to SMEs
• Energy
• Earthquake Risk Mitigation
• Transport
• Environment

The Bank's lending activities are governed by mandates from the EU accompanied by the EIB's Pre-Accession facility for Turkey and the Mediterranean Partnership Facility (FEMIP) and comprise a targeted lending volume of at least EUR 2 billion in the next 2 years helping Turkey to address the many economic challenges it faces in preparing for EU membership and contributing to high and stable growth.