The Turkish Parliament has passed a bill on ratifying the 'Establishment Agreement' established by the Turkish Investment Fund. This is expected to be an essential step in developing and integrating the Turkish economy. Under this law, the capital participation commitment to the Turkish Investment Fund and the payments to be made under this commitment cannot exceed USD 100 million. The President of the Republic will also be authorized to increase this amount by up to five times.
A brief overview of the general structure of the proposed law shows that the fund will have a total authorized capital of USD 500 million, of which USD 350 million will be paid-in capital and USD 150 million will be callable capital. Türkiye's commitment to the fund will be USD 100 million, of which USD 70 million will be paid-in capital and USD 30 million will be callable capital.
At the 8th Summit of Heads of State of the Organization of Turkish States (CIS) held in Ankara, it was decided that the member states would establish the Turkic Investment Fund under the principle of "equal capital contribution and equal voting rights." Within this framework, the "Agreement on the Establishment of the Turkish Investment Fund" was signed on March 16, 2023. This fund is expected to significantly increase the volume of export of the inner region while supporting economic activities that will seriously help the economic development of the CIS countries. It is planned to provide financing to SMEs, co-financing with national and international organizations, expand production capacity, strengthen digital infrastructure, and support development projects in various sectors.