Luxembourg, 06/11/2007 (Agence Europe) - Following a meeting on 5 November with Mehmet Simsek, Turkish Economy Minister, EIB Vice-President Matthias Kollatz-Ahnen and Turkish Treasury Under-Secretary Ibrahim H. Canakci signed a 'host country agreement' on the establishment of two EIB representative offices to be opened in Ankara and Istanbul. The agreement, which is to be ratified by the Turkish parliament, covers the 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. The agreement illustrates the important support from the EIB for Turkey's pre-accession process. It is also remarkable that in Turkey the EIB will for the first time establish two representation offices in the same country, explained Kollatz-Ahnen, adding that Turkey had substantial long-term investment needs, which the EIB was prepared to support.
2007 is proving to be another record year for EIB operations in Turkey, reaching new levels in terms of the EIB'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 €7bn, with €3.5bn being channelled to the private sector, making Turkey by far the largest recipient country of EIB financing outside the EU. Turkey, with a population of over 70 million and the prospect of EU membership, is enjoying rapid economic growth. Against this positive background, the EIB's investments in Turkey will reach a record figure of over €2bn in 2007, confirming the growing share of support for private sector initiatives.
The EIB has established partnerships with national and foreign industrial investors and is supporting, through cooperation with an extended network of local banks, the SME sector in Turkey. 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-confirmed its strong commitment to supporting Turkey in this process. (O.L.)