According to the statement published in Turkey’s Official Gazette, two new support programs have been launched to make it easier for Turkish exporters to access financing and to strengthen their competitiveness in global markets.
Scope and purpose of the programs
According to the statement from the Ministry of Trade:
- Buyer’s credits provided by Turk Eximbank will now be supported not only for medium- and long-term loans but also for short-term letter of credit transactions.
- Financial cost support will be provided for investment goods exported within the scope of overseas contracting projects.
- In cases of non-repayment of buyer’s credits, 25 percent of the risk assumed by the bank will be covered, up to an annual limit of TRY 1 billion.
- The scope of support has been expanded for export consortia established by at least three companies. Activities such as unit rental, setup/architectural expenses, and storage services will be eligible for support. In addition, each target market will be supported for up to five years.
Expected impacts
According to local media reports, the new financing supports aim to facilitate exporters’ entry into new markets at affordable costs, reduce barriers to financing, and enhance trade confidence in high-risk markets.
Industry representatives stated that these measures will help combine Turkey’s production capacity with its financing strength, paving the way for new advances in exports.
