Statement from Minister Şimşek regarding development banks: They are catalysts that trigger change

Minister of Treasury and Finance Mehmet Şimşek spoke at the opening of the panel titled "From Target to Implementation: Strategic Partnerships to Mobilize Climate Finance" organized by the International Development Finance Club (IDFC) and the Industrial Development Bank of Turkey (TSKB) within the scope of COP31 held in Antalya.

Stating that they built COP31 around the idea of ​​'implementation', Şimşek pointed out that developing countries need approximately 4 trillion dollars every year to finance their sustainable development goals, and 1.8 trillion dollars of this is for climate finance needs. Stating that the financing gap continues to grow despite the efforts of multilateral development banks in this field, Minister Şimşek noted that national development banks can play a greater role in closing this gap by mobilizing their own resources.

Şimşek stated that multilateral development banks provide long-term financing and global expertise, while national development banks provide local knowledge, and said, "When we join forces, we make projects financeable, we introduce better standards and more effective tools."

Underlining that national development banks adopt higher standards in project preparation when working with multilateral development banks, Minister Şimşek continued his words as follows:

"Governance, environmental and social safeguards and risk management are of critical importance. National development banks obtain these standards from multilateral banks and transfer them to their own customers. This is where the real value emerges. Most of the time, we focus only on numbers, whereas the contribution offered by this partnership is much greater. Over time, the quality of investments in the entire economy increases and our capital markets deepen. Therefore, I see our development banks not only as intermediaries, but as catalysts that trigger change towards better governance and higher standards."

Drawing attention to the uncertainty environment in the world, Şimşek said, "Predictability is key. Investors want to be able to see 10 years ahead. If the goals and rules are not clear and there is no convincing road map for transformation, no financing instrument can mobilize investment."

Emphasizing that they aim for strong, sustainable and inclusive growth, Minister Şimşek said, "We will achieve this goal by increasing efficiency, competitiveness and durability. In this process, the private sector and green and digital transformation will be at the center."