Other BriefingsTurkey’s Pre-financing Project for Exporters
Good news for Turkish based manufacturing exporters
By Selim Ural, Kulat Law Firm, Istanbul
The Turkish Minister of Trade Mehmet Mus, has stated that the Ministry has developed a model for pre-financing and collateral with the participation of Türk Eximbank and Export Development Inc. (İGE AŞ) under the coordination of the Ministry of Trade in order to eliminate the financial burden of exporters. In addition, he said “In the model we have designed, we provide pre-financing opportunities for our project, program and status-based supports we provide to our exporters of goods and services.”
This is positive news for foreign investors in Turkiye with an export component to their production. With this new model, companies no longer need to spend capital by carrying out their activities in order to benefit from export supports, and they do not have to waste time by applying to the inspecting institution with the necessary documents. In order to eliminate this burden and increase the credit capability for exporters, a model for pre-financing and collateral was developed with the participation of Türk Eximbank and İGE AŞ under the coordination of the Ministry of Trade, based on the Decree on Export Supports.
In the model designed, especially the support (Market Entry Project Preparation Support, Global Supply Chain Competency Project Support, Design and Product Development Support, Brand and TURQUALITY Support Programs) for companies that have been granted export and e-export consortium status, pre-financing was introduced for the project, program and status-based supports given to exporters of goods and services. Exporters whose support application is approved by the Ministry will apply for a loan to Turk Eximbank and will be prioritized in the evaluation process.
Mus pointed out that this makes it easier for all exporters, especially SMEs, who have credibility but have collateral problems, to access financing of İGE AS. According to Mus, HDI has provided guarantees for over 6 billion liras to 2,148 companies to date, giving exporters a breath of fresh air in terms of financing. Türk Eximbank also provided a total of USD46.1 billion in support to exporters in 2021 alone, including USD22.5 billion in loans and USD23.6 billion in insurance. For assistance, please contact us via turkey@dezshira.com
Related Reading
- Turkiye’s Exports Have Reached the Highest Export Levels in the Country’s History
- Establishing A Foreign-Invested Manufacturing Production Line In Turkey
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