The World Bank has approved a Sustaining Shared Growth Development Policy Loan (SSG-DPL) loan in the amount of Euro 367.40 million for Turkey to support reforms in the areas of enhancing competitiveness and improving transparency, sustaining job creation and boosting female employment, increasing financial inclusion and creating a regulatory framework to attract long-term, quality investment in the country’s infrastructure.
The policies, strategies, and reform actions supported under the SSG-DPL program target the following outcomes:
Pillar A: a reduction in informal employment, increases in the number of firms undergoing independent audits, new patent applications, corporate bond issuances, and an increase in the number of tax payers filing income tax;
Pillar B: increases in the female labor force participation rate, public and private credit bureau coverage, depositors in commercial banks, and in the leasing penetration rate, and the introduction of auto-enrollment into private pensions;
Pillar C: increased private sector investment in new electricity generation capacity, a decrease in the share in gas imports of the Petroleum Pipeline Corporation (BOTAS), the functioning of the Energy Markets Operation Corporation (EPIAS) as an independent company with equity participation by Borsa Istanbul and electricity and gas market participants, and the licensing of at least one private sector freight operator to operate on Turkish State Railways (TCDD) infrastructure.
The SSG-DPL is an IBRD Flexible Loan with an interest rate equal to 6 months EURIBOR term plus a variable spread, with a final maturity of 15.5 years, including an 8.5 year grace period.