European Investment Bank Suspends Lending to Turkey

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EIB, the largest foreign creditor of Turkey, has announced that it suspended lendings until the end of the year due to a strategy review regarding its investments to Turkey.

The European Union (EU) imposed sanctions on Turkey earlier in the month overt its hydrocarbon activities which it called "illegal."

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The EIB has spent between 400 million euros and 2.2 billion euros a year in Turkey in the past three years, while is has not made an investment this year so far.

The EIB will follow a "restrictive approach" in terms of new lending operations, Reuters said, quoting a spokesperson of the bank. It said the decision is not expected to affect private sector projects.

The EU decided on July 15 to reduce the pre-accession financial assistance to Turkey for 2020 and ask the European Investment Bank to review its lending to the country. It also decided to suspend negotiations on the Comprehensive Air Transport Agreement and will not hold the Association Council and further meetings of the EU-Turkey high-level dialogues. (EMK/VK)