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Wednesday, February 21, 2024

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IsDB’s trade finance arm support Turkiye’s earthquake recovery program and SME sector  

Turkiye’s agri-food and SME sectors have received a boost of support from the IsDB and the International Islamic Trade Finance Corporation (ITFC) in the form of funding worth a total of US$240 million. 

The IsDB and the ITFC signed an agreement with the Development and Investment Bank of Turkiye formalizing a US$200 million financing facility supporting the Post-Earthquake Recovery and Agri-food Support (PERAS) project in Turkiye. Funds from the OPEC Fund have also been mobilized for this project, in addition to the IsDB and ITFC’s contributions, through the Arab Coordination Group’s Food Security Action Commitment.  

The PERAS project aims to revitalize Turkiye’s agriculture and agri-food sectors in the 17 provinces of the country most affected by the earthquakes that occurred in February 2023.  

The funds from the agreement will go to initiatives including the rebuilding of agricultural infrastructure, agri-food processing, distribution and agricultural technologies. The investment is also aimed at developing robust market linkages to ensure the long-term viability and growth of Turkiye’s agricultural sector, a statement read.  

“Our contribution of US$100 million aims to finance the import and pre-export needs of Turkish companies in critical sectors, including food security, agriculture, and earthquake-affected enterprises,” said Hani Salem Sonbol, the CEO of ITFC.  

Meanwhile, the ITFC also signed two separate financing agreements worth a total of US$40 million with Turkish participation banks Vakif Katilim Bank and Ziraat Katilim Bank.  

The allocated US$20 million for each bank will go to supporting the private sector and SME clients of Vakif Katilim and Ziraat Katilim, to help them meet their trade financing needs.  

The two banks join Turk Eximbank, which received a syndicated Murabahah facility worth US$277 million in September this year, as a partner bank of the ITFC in Turkiye to boost the Turkish private sector’s access to Islamic trade financing. 

The IsDB has, to date, extended nearly US$12.6 billion to Turkiye to support over 554 socio-economic development projects.  

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