Bank to invest 1 billion euros in Turkey in 2013

  Date posted: 12th of September 2012

The European Bank for Reconstruction and Development is to invest at least 1 billion euros in Turkey next year.

EBRD President Suma Chakrabarti said the bank sees growing demand for financing in Turkey, especially from renewable energy and agribusiness sectors. He added that Turkey, which has seen increased foreign investment in recent years, is set to overtake Ukraine and become the bank's second biggest investment destination after Russia.

"We're pretty confident we'll spend at least another billion (euros) here next year ... I'll be surprised and upset if we didn't manage that," the president journalists late on Tuesday.

"There's demand beyond a billion a year, the pipeline is strong and growing, but we are only a few years into our relations," he said, noting it would be partly up to the bank's shareholders whether to expand the programme further.

The EBRD was set up in 1991 to invest in the ex-Communist states of eastern Europe where it has played an influential role in transforming sectors ranging from banking to telecoms.

Since 2009 it has invested around 2 billion euros in Turkey, much of it in small and medium-sized companies in remote regions.