AIIB Backs Türkiye's Earthquake Recovery With Green Finance Support

(MENAFN- Trend News Agency) BAKU, Azerbaijan, December 25. The Asian Infrastructure Investment Bank (AIIB) will provide $300 million in sovereign-backed financing to Türkiye's VakıfBank to support post-earthquake reconstruction and expand climate-aligned lending to small and medium-sized enterprises (SMEs), Trend reports citing the bank.

The facility targets two of Türkiye's key priorities following the devastating earthquakes of 2023: rebuilding resilient infrastructure and accelerating the country's long-term climate transition.

A significant portion of the funding will be used for the reconstruction of affordable housing and essential social infrastructure, including schools and healthcare facilities, in earthquake-affected regions. The aim is to restore safe living conditions and critical public services for communities hardest hit by the disaster.

The remaining funds will be directed toward climate-focused financing for SMEs, supporting investments in renewable energy, energy efficiency, clean technologies and climate-resilient business practices.

AIIB said the program would leverage VakıfBank's nationwide network and experience in development-oriented lending to generate broad social and economic benefits, ranging from safer housing and restored public services to stronger and more resilient businesses.

The project aligns with AIIB's priorities on green infrastructure and private capital mobilization, and supports Türkiye's commitments under the Paris Agreement as well as several UN Sustainable Development Goals, including sustainable cities, climate action and decent work and economic growth.

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