The European Investment Bank (EIB) has granted a $432m (€293m) loan to Turkey to finance a key rail project.

The $3.8bn (€2.6bn) project involves the construction of a high-speed railway between Ankara and Istanbul and is aimed at cutting travel times and improving the economy.

The railway is also a continuation of the Pan-European Corridor IV, linking with the Marmaray Bosphorus Tunnel Project to allow high-speed trains to run across the two continents.

The loan agreement has been signed with Türkiye Cumhuriyeti Devlet Demiryollari (TCDD) and brings the EIB’s total investment in the project to $1.25bn (€850m).