Agencies
Investments made by the European Bank for Reconstruction and Development (EBRD) surged by 26% in 2024 to a record 16.6 billion euros ($17.1 billion), it said on Thursday, with Turkey remaining a top destination of the investments.
The rise in investments came thanks to more projects in Ukraine and green financing, the lender said, also suggesting the bank has surpassed pre-pandemic investment by 60%.
Over three-quarters of the 584 projects financed last year were directed to the private sector, the EBRD said. Meanwhile, total mobilization – the overall amount of investment unlocked from sources other than the bank – amounted to 26.7 billion euros.
“The level of support to Ukraine has increased,” said EBRD President Odile Renaud-Basso.
“Another component is green investment ... we’ve been doing a lot of work with a number of countries on strategies to develop renewables, to attract investors in the renewable sector, for example, in countries like Uzbekistan or Egypt.” Turkey remained the biggest investment destination last year, Renaud-Basso said, followed by Ukraine, Egypt, Poland and Uzbekistan.
She said recent Russian attacks on Ukraine’s energy infrastructure – a key focus for the lender – had made the situation on the ground “very tense.” “It’s very painful and it has taken a huge toll on the economy,” Renaud-Basso said, adding that the EBRD had seen huge demand for a program put in place late last year that helps companies boost their power generation capacity.
Asked about the Turkish central bank delivering a 250 basis point rate cut in December after inflation fell more than expected to 44.38%, Renaud-Basso said policymakers’ work was not yet done.
“You need to keep the course and not stop in the middle; there is still a long way to go,” she said.
The Central Bank of the Republic of Turkey (CBRT) slashed its key policy rate at the end of last month, marking the first sign of easing after a tightening drive that commenced in the summer of 2023 to rein in elevated prices.
The EBRD president also visited the country in November for official talks while she also participated in the ceremony for the launch of Turkey’s new decarbonization investment platform, of which the bank is the main backer.
At the same time, the EBRD has also recently announced a new five-year Turkey strategy focusing on areas such as intensifying green transition, boosting the development of human capital, increasing the country’s global competitiveness and strengthening its infrastructure and regional integration.
Total investments by the bank in the country reached some $22 billion so far.
