Export Credit

• Pre-shipment export credit: Short-term export credit facilities covering all sectors and providing financial support to exporters
• Foreign trade companies short-term credit program: Türk Eximbank extends credits in domestic or foreign currency directly to exporters for up to 100% of FOB export commitments, with a repayment period of up to 180 days
• Rediscount credit program: Additional limit to the post-shipment discount limit extended to Türk Eximbank by the Central Bank of Turkey
  - Up to USD 25 million of export receivables with a maturity of up to 360 days can be discounted—the first part (up to 240 days) by the Central Bank, and the residual part (extra 120 days) from Türk Eximbank's own sources
• Post-shipment rediscount credit program: Uses funds from the Central Bank of Turkey
  - Export receivables subject to bankers’ acceptances provided by commercial banks and/or letters of credit and/or export receivables insured by Türk Eximbank
  - Short-term export credit insurance policy is discounted by Türk Eximbank
  - Export receivables with maturity of up to 360 days are discounted on LIBOR/EURIBOR + 1.5 spread

Export Credit Insurance

• Credit terms: Short, medium and long-term
• Coverage is up to 90% of losses due to the political and/or commercial risks for the shipments to be paid on 360 days at maximum
• Fees: Premium rates range from 5% to 40%
• Insured exporters are obliged to declare their shipments effected in the previous month along with the overdue by the 10th day of each calendar month
• Export receivables of Turkish goods and services bearing a maturity over 1 year and under a single contract are covered under this program against political and commercial risks during the post-shipment stages
• 15% of the contract value is expected to be paid in advance and maximum liability will be up to 90% of the sum insured

Export Receivables Discounting Program

• Exporters assign the receivables arising from export transactions to Türk Eximbank, which in turn pays the receivable amount less the discount fee and the insurance premium to the exporter
• In export transactions with a credit period of 24 months or more, the buyer must make a minimum advance payment of 15% of the contract value no later than at the starting point of credit
• For capital goods, export receivables with a maturity of up to 120 months are discounted
• Repayment of an export transaction with a credit period of 24 months or more must be made in equal installments with a maximum of 6 monthly intervals

Credit Foreign Currency Earning Service

• International transportation marketing credit program: Short- and medium-term financing facility provided directly by Türk Eximbank
  - Repayment period: 18 months
  - Coverage: 100% of freight to be realized in the credit period, but cannot exceed USD 2 million, or a maximum of 20% of the freight revenue earned in the previous year

• Tourism marketing credit program: Provided to Turkish travel agencies and airline companies for their promotional and marketing activities or services abroad
  - Repayment period: 18 months
  - Coverage: For tour organizing travel agencies and airline companies selected by the Ministry of Tourism, maximum of 15% of the foreign currency earnings and no more than USD 4 million; for all others, maximum of 10% of the foreign currency attracted by firms and 80% of the total expenditure of the proposed project, and no more than USD 2 million
• Credit program for foreign currency earning services: Short- and medium-term financing for software design and development, project design, consultancy services, and project-based services

Credit Programs for Participation in Overseas Trade Fairs

• For companies authorized by the Under-Secretariat of the Prime Ministry for Foreign Trade to arrange fair organizations and companies attending these fairs to increase their market share
• Credit only extended in domestic currency
• Company limit for attending companies is TRY 100,000 and for organizing companies is maximum of TRY 1,000,000
• Coverage: Up to 80% of the total expenditures of the proposed project for attending firms and 30% for organizers
• Repayment period: 360 days

Buyer Credit Through Foreign Banks and Foreign States

• Amount financed:
  - For loans with a tenor of less than 24 months, might be up to 100% of the export contract value of Turkish goods
  - For loans with a tenor of 24 months or more, might be up to 85% of the export contract value of Turkish goods, and the remaining 15% of the export contract value must be financed by the foreign buyer or the foreign bank itself"
• For each trade finance transaction, an irrevocable and non-transferable L/C shall be issued by the foreign bank, with a Turkish commercial Bank, in favor of the Turkish exporter, where Türk Eximbank will be indicated as the reimbursing bank and authorized to reimburse up to 100% of the L/C amount (for loans with a tenor of less than 24 months) or up to 85% of the L/C amount (for loans with a tenor of 24 months or more) respectively
• Repayment period:
  - Up to 2 years for import of durable and non-durable consumer goods
  - Up to 10 years for import of capital goods"

Other Products

• Overseas chain stores investment credit: Supports direct sales of Turkish brand consumer goods in international markets; credit for up to 7 years and up to 85% coverage
• Specific export credit program: Used to evaluate credit demands that cannot be subject to the standard credit programs of Türk Eximbank; medium-term pre-shipment financing facility for projects that generate foreign currency

• Ship-building finance and guarantee program: Support Turkish dockyards to increase their share of international markets
  - Takes the form of direct loans and letters of guarantees
  - For the buyer’s bank (as a refund guarantee for advance payments), for the buyer (as a refund guarantee for the advance payments), to the supplier’s bank (for L/Cs), and to the supplier
  - Maturity: Determined by Türk Eximbank according to the project but observing the maximum 24-month period in case tax exemptions are granted
  - Coverage: Determined by Türk Eximbank by project, but typically less than 85% of the contract price
  - Interest rate: Determined by each project
  - Special provisions: Turkish content should be at least 25% of the contract price and the equity content of the firm should be 15% or more
  - Collateral: Letter of guarantee from commercial bank or treasury bills and government bonds"

• Letter of guarantee program for overseas contractors' services: Overseas contractors who participate in tenders abroad are provided letters of guarantee by Türk Eximbank under the counter-guarantee of Turkish commercial banks

• European Investment Bank-Funded Investment Loan: Medium- and long-term investment facility made available by the EIB aiming to increase new investments in Turkey
  - Undertaken by Turkish export-oriented or foreign currency earning private sector enterprises in manufacturing, logistics, and tourism industries"
• Insurance program for unfair calling of bonds:
  - This cover applies to bid bonds, advance payment, and performance bonds for Turkish contractors to eliminate the risk of unfair calling of bonds
  - Bonds are issued by a bank in favor of the public buyer based in the borrowing countries for projects undertaken by Turkish contractors or Turkish sub-contractors"

• International project loans:
  - Projects undertaken by Turkish contractors in foreign countries are financed by loans and guarantees
  - Coverage: Up to 85% of the goods and services exported from Turkey while exports from third countries cannot be financed; however, up to 100% of Turkish goods and services exports can be financed given that the amount does not exceed 85% of the sum of Turkish and third country exports; up to 30% of local costs can be considered
  - Repayment period: Typically, 10 years for infrastructure and superstructure projects, up to 12 years for energy plants (except nuclear), 14 years for railway projects, and 18 years for renewable energy, climate change mitigation, and water projects