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Turkey reportedly set to receive €3.1bn in international loans to help meet clean energy goals

Turkey is reportedly set to receive loans worth €3.1bn to help it meet clean energy goals set out in the Paris climate accord, under a planned deal funded by the World Bank, France and Germany.

Reuters on October 14 cited sources familiar with the plan as revealing the loans.

Turkey last week became the last country in the G20 group of major economies to ratify the Paris accord. For years, Ankara insisted that prior to ratification, Turkey must first be re-classified as a developing country, which would give it access to funds and technological help. The ratification came after a summer of wildfire and flooding disasters that many observers largely blamed on climate change. Turkey’s government was widely seen as ill-prepared for the disasters.

Under a memorandum of understanding lined up for signing this month before the United Nations climate summit in Scotland, Ankara is to receive the loans even without the requested change of status to developing country being met, the sources were reported as saying.

Most of the money would come from the World Bank, which would provide €2bn in finance, compared to €1bn from France and slightly over €200mn from Germany, three sources were quoted as saying.

"Agreement on the amount and modalities has already been concluded and it's because of this that Turkey ratified the Paris accord," said one source spoken to, though four sources were reported as stating the full memorandum was yet to be agreed and cautioning that nothing was certain until all parties had signed off.