TSKB and ITFC Sign a USD 50 Million Financing Agreement to Support Companies Affected by Earthquake

Following the February 6, 2023 earthquakes, the Industrial Development Bank of Türkiye (TSKB) continued its efforts to aid the economic and social recovery of affected areas and has recently signed a new financing agreement with International Islamic Trade Finance Corporation (ITFC) to support private sector businesses in these regions. The agreement amounting US$50 million marks the first collaboration between the two institutions.

TSKB has signed a US$50 million financing agreement with the International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, in coordination with the Ministry of Treasury and Finance of the Republic of Türkiye.

The financing will primarily address the working capital needs of private sector companies in the provinces affected by the earthquakes in Eastern and Southeastern Türkiye in February 2023. By supporting Turkish businesses' pre-import and pre-export requirements, especially those impacted by the tragedy, the financing, which is intended to lessen the financial difficulties and effects of the earthquakes, hopes to improve the area economy's vitality. 

Commenting on the financing agreement, TSKB CEO Murat Bilgiç stated, “Since the first day of the earthquake, TSKB has been fully committed to supporting recovery efforts with all its strength. This financing agreement represents a significant step towards contributing to Türkiye’s post-earthquake economic recovery and supporting the rebuilding of businesses in the affected regions. We are pleased to collaborate with ITFC to deliver the crucial financial support needed by businesses for the economic recovery of the region. This agreement is also the first collaboration between ITFC and our Bank, and it demonstrates our 74-year commitment to creating lasting value and providing financing for our country’s inclusive and multifaceted development. I hope this agreement proves beneficial for our earthquake-affected provinces and our country. I also extend my gratitude to our esteemed partner, ITFC, for their trust in our Bank.”

Sharing his views on the agreement, ITFC CEO Eng. Hani Salem Sonbol noted, "This partnership is not only a testament to our commitment to supporting trade and economic development but also reflects our dedication to addressing the critical and emerging needs of those affected by the earthquake. It underscores ITFC's partnership with a development finance institution, TSKB, to foster economic resilience and recovery of companies effected by the earthquake. This agreement also marks a significant milestone where we are extending financing to the priority areas of Turkiye in coordination and cooperation with the Ministry of Treasury and Finance. This strategic shift signifies a new era in ITFC's interventions in Türkiye, expanding our role from a focus on pure private sector financing to actively contributing to the rebuilding of the economy, after a natural disaster.”