Turkey creates joint defense, security and resilience bank with several countries

Turkey, Canada, Albania, Belgium, Greece, Latvia, Luxembourg, Romania and Ukraine signed a joint declaration of intent to establish the Defense, Security and Resilience Bank (Defense, Security and Resilience Bank, DSRB).

It is expected that the new international financial institution could begin operations as early as 2027, and its headquarters will be located in Canada.

The creation of the bank was announced during the NATO leaders' summit held in Ankara. According to a statement from the office of the Prime Minister of Canada, the leaders of nine states confirmed their intention to create a financial organization that will provide long-term and affordable financing for projects in the field of defense, security and resilience.

As explained by the Ministry of Finance of Canada, the DSRB is designed to eliminate the financing deficit in defense supply chains, providing support to both the governments of participating countries and small and medium-sized enterprises operating in the defense industry.

It is assumed that, thanks to its high credit rating, the bank will be able to attract capital on favorable terms, reducing the cost of borrowing for participating countries and contributing to the development of their defense industries.

Canada had previously stated its readiness to host the headquarters of the new bank. According to Associated Press, the main task of the DSRB is to help NATO countries and partner states fulfill their obligations to increase defense spending through cheaper financing and the pooling of participants' credit capabilities.

In addition, the bank plans to provide guarantees that will facilitate defense companies' access to commercial bank loans, which should stimulate the implementation of new projects and the strengthening of the allies' defense potential.

Source: Sözçü