EIB to halt Turkey government-linked lending till year-end

The European Investment Bank (EIB) will not do any new lending in Turkey linked to the government until at least the end of the year while it carries out a strategy review, Report informs referring to Reuters.

The move is part of a European Union decision earlier this month to symbolically punish Turkey over what it calls “illegal” drilling for oil and gas off Cyprus in the eastern Mediterranean.

The freeze is not currently expected to affect private sector projects and the bank could still sign around 350 million euros worth of deals before the end of the year if it gets the green light from EU finance ministers on the EIB board.