Türkiye Secures $5 Billion AIIB Financing for Public Projects

Türkiye’s Treasury and Finance Ministry announced on Monday that it has signed a Memorandum of Understanding (MoU) with the Asian Infrastructure Investment Bank (AIIB) to secure $5 billion in financing for public sector projects between 2025 and 2027.

Strengthening Türkiye-AIIB Cooperation

The agreement, formalized in Al-Ula between Turkish Finance Minister Mehmet Şimşek and AIIB President Jin Liqun, marks the first multi-year cooperation framework between Türkiye and the Beijing-based multilateral bank.

“With this Memorandum of Understanding, our cooperation with the AIIB has been further strengthened,” the ministry stated, emphasizing that the funding will support projects in sustainability, green development, energy, transportation, export financing, health, and water management.

Private Sector Investment and Economic Confidence

In addition to the $5 billion for public projects, the ministry revealed that the AIIB is expected to allocate an additional $5 billion for private sector investments in the future. This financing will contribute to infrastructure and superstructure projects across various sectors and regions, enhancing Türkiye’s economic resilience and export financing capacity.

The statement also underscored Türkiye’s strong collaboration with multilateral development banks, noting that the country’s active project portfolio has reached $35 billion by the end of 2024. This reflects growing confidence in Türkiye’s economic program and project finance management.

Türkiye’s Role in AIIB and Regional Financing

Türkiye holds a $2.6 billion capital stake in the AIIB, granting it 2.5% voting power as the bank’s 10th largest shareholder. Among regional members, Türkiye ranks seventh in influence.

Since 2018, the AIIB has provided $5.5 billion in financing to Türkiye, making it the second-largest recipient of AIIB funding after India.