Arvid Tuerkner, the Director for Turkey at the European Bank for Reconstruction and Development (EBRD), announced that the bank’s total investments in Turkey have exceeded 20 billion euros. Tuerkner will leave Turkey, where he has been for the past seven years, and will take on the role of EBRD Director for Ukraine as of August 1.

Tuerkner shared his experiences from his seven years in Turkey and discussed the bank’s investments. He noted that EBRD’s total investments in Turkey surpassing 20 billion euros reflects “the strength of our partnership with local partners and our long-term commitment and belief in the potential of the Turkish economy, even in challenging times.”

“THE PRIVATE SECTOR IN TURKEY IS VIBRANT AND DYNAMIC”

Tuerkner remarked that the private sector in Turkey is quite lively, exhibiting a strong appetite for growth, innovation, and development.

He stated that this dynamism is evident in the entrepreneurial spirit and the relentless drive for progress across various sectors, while also acknowledging that the economic environment presents significant challenges.

Highlighting the critical importance of predictability in the investment climate and regulations, Tuerkner continued:

“One of the most important lessons I’ve learned from my experiences in Turkey is the extraordinary capacity of the Turkish private sector to adapt to these challenges. The agility and resilience shown by local businesses is commendable. However, in the face of continuous and severe economic fluctuations, these qualities alone may not suffice. In this regard, the role of international investors like us becomes of great importance. Our presence and financial support are crucial for promoting stability and progress in the Turkish economy. By providing much-needed capital and expertise, we help close gaps and create a more conducive environment for sustainable growth. Therefore, it is imperative to consistently support the autonomy of local institutions, the effectiveness of regulatory frameworks, and the implementation of structural reforms that improve the investment climate.”

Tuerkner shared that during his seven years in Turkey, he had the privilege of witnessing the private sector’s response to various crises, ranging from economic hardships to natural disasters.

He pointed out that during this period, global and local challenges have increased economic vulnerabilities and the need for structural reforms has become more critical. He said, “However, over the past year, we have witnessed many positive steps towards a return to orthodox policy in the economy and strong signs of improvement in investor confidence in Turkey’s potential. This situation has also been recognized by rating agencies. It is important that the return to orthodox policies, which are essential for economic stability, continues. As of now, we do not see any signs of a change in this direction.”

“THE PATH OF DE-INFLATION IS ENCOURAGING”

Tuerkner expressed that despite rate hikes, inflationary pressures continue in the country, expressing the following:

“However, we welcome signs that a path of de-inflation has begun. High inflation complicates pricing strategies even for the most agile private sector firms and fuels uncertainty and caution. When faced with uncertainty, resilience becomes even more critical for economies. We are working with our partners and clients in Turkey to invest in projects that can enhance the resilience of the Turkish economy. A strong way to achieve this is by building an inclusive and green economy that can absorb both global and local shocks.”

Tuerkner noted that during his tenure, he observed a significant change in the private sector’s growing appetite for green investments and their willingness to accelerate transformations.

He recalled that during this period, they provided financing for projects across all sectors, from energy to infrastructure to agriculture, to contribute to the private sector’s goals, achieving high success rates. “None of this would have been possible without the strong interest from companies,” he stated.

SOLIDARITY DURING THE EARTHQUAKE

Tuerkner pointed out that 2023 has stood out in Turkey, saying, “The response of private sector companies to the indescribable earthquake disaster was unprecedented. The support provided to those affected by the earthquake and the cities in the region was one of the strongest shows of solidarity I have ever witnessed. I am proud that the EBRD also played its part.”

Regarding how his experiences in Turkey will translate to Ukraine, Tuerkner noted that the war in Ukraine presents unique challenges for the country’s economic stability.

Tuerkner emphasized that throughout Turkey’s difficult times, the most evident situation he observed regarding economic stability was the role and impact of the private sector, stating:

“For a competitive, resilient, and inclusive economy, the private sector must be supported in enhancing its capabilities, particularly in areas such as digital developments, environmental measures, and corporate efficiency. However, these capacities must be backed by a favorable regulatory environment, which makes policy dialogues extremely important. When these efforts come together, it reaffirms the potential of institutions like the EBRD to fulfill their missions. I am confident that just as my team in Turkey achieves these important strategic goals, our colleagues in Ukraine will as well.”


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