Long-term finance institutions of G20 meet in the D20 conference in Istanbul hosted by TSKB

26 May 2015
- 3 min Read

The high level representatives of development finance institutions, long-term investors and major multilateral financial institutions gathered in Istanbul on May 26th, 2015 on the occasion of the third D20 conference. This conference held in Istanbul was preceded by the conferences in Moscow in 2013 and Rome in 2014. During the conference, the main theme of which was “Infrastructure as a Long Term Tool for Sustainable and Comprehensive Growth”, models targeting the long-term non-bank financing of infrastructure projects were elaborated. Additionally, social infrastructure investments targeted at social welfare, health and productivity were discussed in detail.

As an output of the conference, a statement was issued by D20 members to be presented to the leaders in preparation of the G20 summit.

Mr. Özcan Türkakın, CEO of TSKB, in his opening remarks of the D20 conference stated: “Under the Turkish presidency this year’s G20 meetings aim to generate solutions for a spectrum of issues. These include strong, sustainable and well balanced growth, infrastructure investments, financial regulations and international financial architecture. Turkish Presidency’s priorities have been announced as; implementation, investments and inclusiveness. Strong emphasis is given to the principle of inclusiveness or comprehensiveness, for the significant impact SMEs have on employment generation, entrepreneurship and innovation. At this conference we had the opportunity to approach the focal points of this year’s G20 with a view of long-term investors.”

Türkakın also commented on the effects of social infrastructure projects on macroeconomic growth and said “We all acknowledge the positive impact of infrastructure investments on economic growth. On the other hand, we have a lot of ground to cover in developing models of PPP to incentives and related regulations. I take pride in being amongst the signatories of the statement of the conference that encompasses high level of commitment and social responsibility by all participating parties of D20.”

Professor Franco Bassanini, Chairman of Cassa Depositi e Prestiti and President of the Long-Term Investors Club, which met the day before in the steering committee format, under his presidency, stated “Regulators should help the banking sector improve infrastructure financing by removing regulatory disincentives to long-term investments, especially in the construction phase and prudential regulations for long term institutional investors (pension funds, insurance companies, etc.). The cost of valuing projects for investors can be mitigated in various ways, through constructing less risky and more standardized financial instruments. Investors looking for assets to match their risk appetite and future liability need reliable cash flows for long-term projects.

The industry needs to develop local and regional capital markets and giving a boost to capital market financial instruments (such as Project Bonds and ABS on project financing loans). This requires a new complementary relationship between banks, capital markets and institutional investors. The Juncker plan for greater investment in Europe promoted by the European Commission and the European Investment Bank has an important role to play here.”

List of participating institutions to the 3rd D20 Conference in Istanbul, May 26th 2015

• Bank of Investment and Foreign Trade (BICE), Argentina

• Banco Nacional de Desenvolvimento Econômico e Social (BNDES), Brazil

• China Development Bank (CDB), China

• European Investment Bank (EIB), European Union

• Caisse des Dépôts et Consignations (CDC), France

• Kreditanstalt für Wiederaufbau (KfW), Germany

• Indonesia Eximbank, Indonesia

• Cassa Depositi e Prestiti (CDP), Italy

• Development Bank of Japan (DBJ), Japan

• Japan Bank for International Cooperation (JBIC), Japan

• Korea Development Bank (KDB), Korea

• State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” (VEB), Russia

• Development Bank of Southern Africa (DBSA), South Africa

• ICO Instituto de Credito Oficial (ICO), Spain

• Türkiye Sınai Kalkınma Bankası (TSKB) - Industrial Development Bank of Turkey, Turkey - organizer