ANKARA- Turkey will become a funder of the European Bank for Reconstruction and Development (EBRD) under an agreement planned to be sealed on Friday, Turkish economy officials said.

The initial 25 million euros ($30 million) of funding will be used for social projects, they said, adding that the amount of funding to the bank will gradually increase.

The EBRD said the projects would help boost economic growth. A major investor in Turkey, the bank says its has invested 10 billion euros to date, almost all of that in the private sector.

EBRD President Suma Chakrabarti is visiting Turkey on Thursday and Friday to meet with government officials and company representatives.

Ankara and officials from the EBRD last year denied speculation that European institutions, including the EBRD, would stop funds to Turkey after relations with Germany soured.

EBRD's first investment in Turkey since then came earlier this month when Turkish firm YDA issued a 400 million lira ($105 million) bond, for which the bank provided 90 million lira in funding.

($1 = 0.8187 euros) ($1 = 3.7990 liras)

(Writing by Ali Kucukgocmen; Editing by David Dolan) ((ali.kucukgocmen@thomsonreuters.com; Reuters Messaging: Reuters Messaging: ali.kucukgocmen.thomsonreuters.com@reuters.net))