EBRD lends US$ 108 million to Türkiye’s Yapi Kredi for earthquake relief

• Up to US$ 108 million in funding to Yapi Kredi under Disaster Response Framework
• Loan to expand financial opportunities in the disaster region
• Disaster Response Framework is part of €1.5 billion earthquake package

The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to US$ 108 million to Türkiye’s Yapi Kredi Bank as part of its Türkiye Disaster Response Framework (DRF), launched in the aftermath of the devastating earthquakes that hit the country in February this year.

The proceeds of the loan will be used for on-lending to businesses and individuals affected by the disasters, and will allow Yapi Kredi to provide funds for relief and reconstruction efforts.

A series of earthquakes hit the south-eastern region of the country early this year, killing more than 50,000 people and causing widespread damage. According to official estimates, the cost to the Turkish economy will be around US$ 100 billion dollars.

The region, which had already been facing major human capital challenges, suffered extensively under the disaster’s immediate impact and the economic shocks it triggered for the local population.

The loan follows a series of transactions under the DRF, an intermediated finance framework of up to €600 million for Turkish banks. The DRF is part of the Bank’s €1.5 billion overall earthquake response package.

With the loan to Yapi Kredi, combined value of EBRD’s DRF transactions is now close to US$ 445 million.

Francis Malige, Managing Director, Head of Financial Institutions for the EBRD, said: "Funding is key in the region’s reconstruction and recovery, and the positive response we have received from our financial partners have been overwhelming. This significant transaction is exemplary of that response. We are confident that in joining forces with Yapi Kredi, one of our key partners in the country, we will further fuel the region’s efforts to rebuild lives and livelihoods.”

Yapi Kredi is publicly traded on Borsa Istanbul. Koc Group, Yapi Kredi’s majority shareholder, is one of the largest groups in Türkiye and Europe.

To date, the EBRD has invested more than €18 billion in various sectors of the Turkish economy, largely in the private sector.