World Bank Approves 342.8 Mln Euro Loan For Turkey

ANKARA - The World Bank approved on Tuesday a 342.8 million Euro loan for Turkey.
The World Bank Board of Executive Directors approved a second Competitiveness and Employment Sector Development Policy Loan (CEDPL 2) for Turkey in the amount of Euro 342.8 million (approximately US$500 million), a bank statement said.
The CEDPL series of loans supports the Turkish Government's program of legal, institutional, and structural reforms aimed at promoting growth and job creation.
The second operation in the series, CEDPL 2 supports policies implemented since mid-2007 in three broad areas including the investment climate, the financial sector, and employment and skills.
The investment climate includes the new research and development law, the reform of customs administration, the amendment of the Land Registry Law, and the further advancement of privatization.
The financial sector includes the new Insurance Law as well as new regulations to improve corporate governance in the capital markets, which will help to mobilize domestic and foreign savings.
The employment and skills includes the first phase of the labor market reform as part of a broader strategy to expand job opportunities in Turkey.
The CEDPL 2 is a fixed-spread Euro-denominated loan, with a final maturity of 23.5 years, including a grace period of 12 years.
"Turkey's program aims to improve international competitiveness and the conditions for private investment and the creation of jobs, particularly in the formal sector," Ulrich Zachau, the country director for Turkey, said.
Zachau said that this program gained special importance during the current period of global economic crisis and financial turmoil.
"The World Bank greatly welcomes this program. We are pleased to support it with the second Competitiveness and Employment Development Policy Loan," Zachau said.
Zachau also said that the bank looked forward to continuing its strong partnership during this period when the people and businesses in Turkey, as elsewhere in the world, faced special challenges.
(BRC-CE)
(ECO)