Türkiye Secures $560M in Financing for Disaster Reconstruction Fund

Türkiye's fund set up to support the reconstruction of areas affected by the early 2023 earthquakes has received its first tranche of financing, amounting to 485 million euros (nearly $560.1 million), according to a report on Tuesday.

The Disaster Reconstruction Fund, created last year to diversify foreign financing sources and channel resources efficiently into post-earthquake reconstruction, has completed its institutional setup and begun full operations, The Caspian Post reports citing Anadolu Agency.

The Feb. 6 tremors in 2023 killed more than 50,000 people, displaced more than 3.3 million and damaged or destroyed over 1.9 million rural and urban housing units.

The initial loan agreement for the Disaster Reconstruction Fund to provide favorable financing to be used for projects in the earthquake zone was signed under the coordination of Abu Dhabi Commercial Bank, with the support of Doğan Investment Bank, AA reported.

The funds will primarily support the construction of new housing and other infrastructure projects aimed at accelerating recovery efforts in the 11 affected provinces.

With the latest funding, Türkiye has secured a total of $7.3 billion in external financing for quake-related expenditures since 2023.

Treasury and Finance Minister Mehmet Şimşek said the fund was established to ensure that resources for the earthquake zone are efficiently managed and transferred to relevant public institutions.

"The fund will operate strongly in line with its mission. We stand by the earthquake-affected region at all times," Şimşek said. "Our efforts to provide favorable external financing to support its economic development and reconstruction will continue."