Türkiye Secures $400m ADB Loan for Resilient Homes and Women-Inclusive SMEs

VakıfBank will lend $200 million of the proceeds to housing developers to support the construction of 4,500 homes across 11 provinces affected by the February 2023 earthquakes.

Thousands of new homes and expanded financing for small businesses are planned under a $400 million Asian Development Bank loan supporting Türkiye's recovery from the February 2023 earthquakes. The financing, approved for Türkiye Vakıflar Bankası T.A.O., known as VakıfBank, will support disaster-resilient housing, clean energy and businesses owned by or employing women in less developed provinces, connecting reconstruction with investment in livelihoods and preparedness for future shocks.

The loan is divided equally between housing and business financing, with $200 million going to developers for residential construction and $200 million supporting small and medium-sized enterprises. Long-term funding will help address two pressures on the country's recovery: the shortage of homes following the earthquakes and the difficulty many businesses face in securing money to invest, improve productivity and protect their operations against disasters.

Building 4,500 Homes Across Earthquake-Hit Provinces

VakıfBank will lend $200 million of the proceeds to housing developers to support the construction of 4,500 homes across 11 provinces affected by the February 2023 earthquakes. The houses will incorporate disaster-resilient and energy-efficient features, making stronger construction and more efficient energy use part of the rebuilding effort.

The earthquakes caused an estimated $103.6 billion in direct physical damage and destroyed about 680,000 houses, leaving Türkiye with an acute housing crisis. The planned homes will contribute to addressing that shortage, with the project linking the immediate need for accommodation to the longer-term importance of buildings that are better prepared for future hazards.

Giving Small Businesses Room to Invest and Recover

The remaining $200 million will be directed to SMEs in less developed provinces, particularly businesses owned by or employing women and enterprises investing in green technologies. Financing will support renewable energy adoption and solutions that help businesses adapt to extreme weather and natural hazards, giving firms access to funding for both cleaner operations and greater resilience.

SMEs account for 99.6% of Türkiye's businesses, but the sector faces a financing gap of $143.3 billion, equivalent to 17.5% of gross domestic product. Disaster impacts and restricted access to credit continue to limit business growth, with women entrepreneurs and business owners in less developed provinces facing major obstacles to improving productivity, expanding investment and strengthening disaster preparedness.

Making Recovery Finance More Inclusive

Capacity building and training will help VakıfBank integrate a framework that supports women's inclusion into its operations, strengthening how the bank delivers, monitors and reports its financing activities. This institutional support accompanies the lending package, helping the bank improve its approach to financing businesses owned by or employing women.

ADB Director General for Central and West Asia Leah Gutierrez said long-term financing through VakıfBank would help rebuild stronger businesses and communities, support private sector development and improve preparedness for future shocks. VakıfBank, Türkiye's second-largest bank by assets and one of its leading state-owned banks, will deliver the financing through an institution with an extensive nationwide network, international operations and a full range of banking services.