ADB Targets Turkish Recovery with $400 Million VakıfBank Loan

A $400 million loan from the Asian Development Bank will fund the construction of 4,500 disaster-resilient homes and provide credit to small businesses in Türkiye. The initiative targets regions devastated by the February 2023 earthquakes, specifically prioritizing firms owned by women and enterprises adopting green, climate-ready technologies.

Editorial·September 29, 2026·reads: 600

The financing package is split evenly, with $200 million earmarked for developers to rebuild residential infrastructure across 11 earthquake-hit provinces. These new units aim to mitigate an acute housing crisis caused by the disaster, which destroyed approximately 680,000 homes and resulted in $103.6 billion in direct physical damage. By mandating energy-efficient and resilient construction, the project seeks to ensure that new housing can better withstand future seismic events.

Simultaneously, the remaining $200 million will address a significant financing gap for small and medium-sized enterprises (SMEs). Despite accounting for 99.6% of the country’s businesses, the SME sector faces a $143.3 billion funding shortfall. VakıfBank will facilitate this capital, focusing on businesses in underdeveloped provinces that often struggle to secure investment for productivity or disaster preparedness. As part of the agreement, the bank will implement new frameworks to improve how it supports women-led businesses, providing both capital and institutional training to ensure long-term inclusive growth. ADB Director General Leah Gutierrez noted that this long-term support is essential for strengthening the private sector and building community resilience against future shocks.