Turk Eximbank contributes to the development of exports with credit and insurance mechanisms that facilitate exporters' access to finance, as well as buyer loans to increase the competitiveness of Turkish goods and services in international markets.
Among the 3-year targets of the economy determined by the Medium Term Program are increasing the effectiveness of the Bank's export financing tools and prioritizing activities for new markets.
In addition, it is envisaged that the Bank's business model and corporate infrastructure will be developed during this period, taking into account international best practices. It is aimed to increase the effectiveness of supports for the financing of high-tech and value-added exports by prioritizing green and digital transformation.
Financing opportunities are diversified
In his evaluation to the AA correspondent, Minister Bolat said that the Bank carries out studies in various areas, from integrating its existing products and services to support the needs of exporters, developing buyer loans and project financing opportunities, from strengthening supply chain financing to increasing SMEs' access to finance.
Stating that they aim to further strengthen the country's effectiveness in global trade and export capacity in line with the "Turkey Century" vision put forward by President Recep Tayyip Erdoğan, Bolat stated that ensuring exporters to open up to new markets safely is among Türk Eximbank's priorities.
Bolat stated that the Bank issued 56 letters of intent for 18 countries last year within the scope of the projects that Turkish companies will undertake abroad, and also allocated a buyer credit limit of $969 million to 36 banks in 34 countries in line with the "Target Countries in Export" strategy.
Stating that they aim to develop buyer loans and project finance practices in a way that will increase support for the projects undertaken by Turkish companies in third countries and diversify financing opportunities, Bolat said:
"In this context, it is planned to expand financing opportunities for private sector buyers, disseminate structures based on reinsurance and risk sharing, and implement the project finance model in a wider geography. We aim to support our exporters more effectively, especially in markets with development potential such as Africa, Central Asia, the Middle East, Far East and Latin America."
Minister Bolat said that they aim to offer exporters more flexible and structured solutions in line with the developments in international markets.
Stating that the bank plans to develop financing and insurance tools, taking into account the collection risks faced by exporters in new markets and the advantages of foreign competitors in their own countries, Bolat stated that they are also working to expand the use of export receivable insurance as a strategic tool that supports Turkish companies in making forward sales.
The share of loans received by companies exporting high technology is increasing
Bolat stated that they aim to expand the scope of the Reference Commercial Interest Rates Support provided by the Ministry so that more companies can benefit from this opportunity in the export of investment goods and projects.
Stating that efforts are continuing to develop new collaborations with export credit agencies, international financial institutions and development banks of other countries, Bolat stated that in the future, they aim to increase the share of investment loans in the total portfolio and to support exporters' green transformation and capacity increase investments on a stronger financial basis.
Minister Bolat stated that, in this context, they directed the long-term resources obtained from international development and financial institutions to the fields of high technology, resource efficiency, renewable energy, low-carbon production, digitalization, and to support women entrepreneurs and SMEs.
Stating that high and medium-high technology exporting companies continue to increase their share of loans with the Exporter Performance Potential Evaluation Model, Bolat said, "With the Bank's activities, it continues to be one of the driving forces of the qualitative transformation of our exports by providing support to 58 percent of our country's medium-high technology exports and 59 percent of high technology exports." he said.
Financing of green transformation is diversified
Bolat stated that they started to offer these products in line with the changing financing needs of exporters and the increasing demand for participation finance products.
Stating that they have separated participation finance activities from other banking activities in all business processes with the Window System Model, which is also an example in other countries, Bolat said that exporters' need for financing for green transformation investments has increased with the introduction of regulations such as the Border Carbon Regulation Mechanism.
Minister Bolat pointed out that they have diversified the resources for financing renewable energy, water efficiency and green transformation investments and said:
"Last year, approximately 2 billion dollars of sustainability-themed funds were provided by Turk Eximbank, in cooperation with multinational organizations such as the World Bank and Asian Infrastructure Investment Bank. With these resources, it is aimed to support the transformation investments of our exporters with long-term and cost-effective financing. In line with the strategic transformation of the bank, we are working towards the creation of an Eximbank model, where different financing tools can be used more effectively under a single export strategy, supported by digitalization and data-based processes."
