According to the statement of Export Import Bank (Eximbank), the bank latened the insurance terms without any subsidy costs, decreased the underwriting break penalties, enlarged the underwriting dates and delayed the credit periods during the pandemic; the bank still continues to support exporters in the normalization period.
In spite of the negative effects of the pandemic, the material support of Eximbank between January and August 15 is valued at 27.5 billion dollars and increased by 5 percent compared to last year. Loan usage is increased by 12 percent and valued at 18.7 billion dollars. The bank also extended the credit terms of 5 thousand 57 firms which is valued over 4 billion dollars.
Eximbank increased importers from Turkey by 5 percent in spite of negative trade cycle and pandemic; over 180 countries included Turkey in insurance coverage in case of default risk, the bank insured over 9 billion dollars of export shipment.
Eximbank keeps supporting the Turkish exporters with it’s terms ranging from 120 days to 10 years, competitive interest rates and over 30 programmes.
Exporters prefer medium and long term loans
According to the statement, exporters have accessed appropriate conditions in long term loans thanks to Eximbank encouragements. Medium and long term loan shares increased by 327 percent compared to last year and their share in total credits reached 30 percent; hence, the bank relieved the exporters during the pandemic period by enlarging the credits to long terms. In this sense, exporters are offered with non-refundable working capital facility with 5 years of extreme limit, non-refundable investment credits with 2 years of extreme limit and terms reaching to 10 years. On the other hand, Central Bank (TCMB) continues it’s extension within their own sanction.
New monetary resources from international capital markets and multinational institutions are reached
Eximbank decreased the cost while reaching new monetary sources from international capital markets and multinational institutions. Roll-over rates were determined as 126 and 134 percent while cost basis points of euro and dollar were decreased by 40 and 25 points in the two syndications held in May.
Banks consortium provided €380 million with 10 years of term with the assurance of World Bank at the end of June. This monetary resource within World Bank’s partial credit guarantee structure is the first in Turkey.
Eximbank has been doing agreements with world’s leading export credit agencies in order to increase and diversify the non-cash supports for Turkish exporters; the latest of these agreements is with EFK Danmarks Exportkredits agency. Bank’s negotiations with export credit agencies from Australia, Hungary and Holland still continue.
UK Export Finance (UKEF) is the England’s export credit agency; the first operation within the agreement between Turkish Eximbank and UK Export Finance (UKEF) is realized in July. According to that agreement, Eximbank made 79.2 million dollars of reassurance support for the power plant project in Iraq.
source: AA / translated by Bazaar Team