On 5 November 2007, following a meeting with State Minister Simsek, responsible for the Economy, EIB Vice-President Matthias Kollatz-Ahnen and Treasury Undersecretary Mr Canakci signed a host country agreement on the establishment of two EIB representative offices to be opened in Ankara and Istanbul. The agreement, which will undergo ratification by the national Parliament, provides for the necessary legal requirements for the establishment and operation of the two local representations. The EIB local offices will facilitate the EIB’s responsiveness to the financing needs of public and private customers and strengthen cooperation with local institutions and partners. This agreement illustrates the important support from the Bank for Turkey’s pre-accession process. It is also remarkable that in Turkey the Bank will for the first time establish two representations in the same country, Mr Kollatz-Ahnen said in Ankara at the signing of the agreement. He added that Turkey has substantial long-term investment needs, which the EIB is ready to support. The EIB’s offices will become operational soon after ratification of the agreement.
The EIB in Turkey
2007 is proving to be another record year for EIB operations in Turkey, reaching new levels in terms of the Bank’s exposure to the Turkish market and confirming its commitment to Turkey. The EIB commenced operations in Turkey more than 40 years ago and has financed a substantial and highly diversified portfolio of both public and private sector projects across all key areas of the country’s economy. Total lending over the period 2000-2007 came to EUR 7bn, with EUR 3.5bn being channelled to the private sector alone. This makes Turkey by far the largest recipient country of EIB financing outside the EU. Turkey, with a population of over 70m and the prospect of European Union membership, is enjoying rapid economic growth. Against this positive background, the EIB’s investments in Turkey will reach a record figure of over EUR 2bn in 2007, confirming the growing share of support for private sector initiatives. The EIB has partnered with national and foreign industrial investors and is supporting, through cooperation with an extended network of local banks, a vibrant SME sector in Turkey. Strong trade links and efficient infrastructure, including transport corridors, are important for the country’s prosperity. Turkey’s efforts towards EU membership give rise to additional investment needs. This will be the case for instance in the environmental sector where enormous amounts of funds will be needed to achieve compliance with EU directives. The EIB re-confirms its strong commitment to supporting Turkey in this process. “Since 2000, EIB lending to the private sector has been steadily increased and will account for the lion’s share of activities in the years to come”, stated Mr Kollatz-Ahnen. EIB lending is diversified in terms of sector, geographical region and promoter, benefiting from Turkey’s robust economic development since the 2001 economic crisis.
About the EIB
The EIB is the European Union’s financing institution, set up in 1958 under the Treaty of Rome. Its mission is to contribute to the policy objectives of the European Union by providing long-term finance for investment projects. The Bank is owned by the Member States of the European Union. Outside the Union, the EIB operates in Croatia, Turkey, the Western Balkans, Mediterranean countries, Africa and the Caribbean. Investments in Turkey may be provided under the EU-guaranteed Pre-Accession Mandate (PAM) and Pre-Accession Facility (PAF), where the EIB operates at its own risk, offering Turkey effectively a level playing field with financing operations in member countries. The Bank has a triple-A credit rating and is the largest multilateral financial institution in the world.