For paving the way of Turkey to EU Membership, the European Investment Bank (EIB), the European Union's long-term lending institution, is making available additional funding for sound capital investments in the country:
- Up to EUR 450 million (1) under a Special Action Programme for the period 2001-2004. The funds are to support investments in infrastructure, especially with those improving the links with the EU, in industry with special focus on joint EU-Turkish ventures as well as Small- and Medium-sized Enterprises (SMEs), and where appropriate investments for technical installations facilitating the functioning of the EU-Turkey Customs Union.
- Since May 2001 Turkey is also included as a member country of EIB's Pre-Accession Lending Facility. This means that from now on with regard to EIB lending, Turkey has exactly the same status and possibilities as the other EU-Accession countries. EIB's Pre-Accession Lending Facility totalling EUR 8.5 billion during the period 2000-2003, is available to EU-Accession candidate countries in Central and Eastern Europe (CEEC) and the Mediterranean region, which have concluded Accession Partnership Agreements with the EU. Lending under this facility aims at projects integrating these countries with the EU and facilitating the adoption of the "acquis communautaire". A particular emphasis is given to environmental protection, as well as communications infrastructure (including Pan-European Networks), industrial competitiveness and regional development.
EIB financing to Turkey will continue to be provided also under the current Euro-Med Lending Mandate, of up to EUR 6 425 million during the period 2000-2006, aiming at promoting long-term growth and stability in the 12 non-EU Mediterranean countries which have signed cooperation and/or association agreements with the EU.
Priority rehabilitation and reconstruction works in the regions devastated by the earthquake of August 1999 and its aftershocks in Turkey, are financed under EIB's "Turkish Earthquake Rehabilitation and Reconstruction Assistance" (TERRA) facility, providing for a total of up to EUR 600 million in the form of loans to be engaged over the period 1999-2002.
EIB lending will continue to be carried out in close co-operation with the European Commission to maximise synergies between the MEDA grant aid programmes and EIB loans, as well as with other banking institutions.
The EIB is a lead player in implementing the European Union's priority objectives. In 2000, EIB financing for projects supporting European Union policy objectives totalled EUR 36 billion (up 13% on 1999). EUR 30.6 billion went to projects within the EU Member States and close to EUR 3 billion to those in the Accession Countries, while lending in other countries ran to over EUR 2.4 billion. To fund these activities, the EIB borrowed EUR 29 billion on the world's capital markets. Since 1995, the EIB has contributed more than EUR 700 million towards projects of key importance for the Turkish economy. The EIB has also promoted SMEs through global loans to local commercial banks.
(1) Conversion rates: EUR 1 = 0.638700 GBP, 0.924800 USD, 932.000 TRL.