The Central Bank of the Republic of Turkiye reduced the financing cost of rediscount loans that encourage exports and increased company limits.
While exporters’ and SMEs’ access to financing will increase, financing costs will decrease by approximately 15 points.
According to the implementation instructions sent to the banks, as a result of the update made by the CBRT in the interest calculation method of export and foreign exchange earning services rediscount loans, the total interest cost of rediscount loans will not exceed the Central Bank policy interest level.
CBRT decided to set company rediscount limits at 50% of the financial criterion included in the SME definition. Accordingly, the rediscount limit for micro enterprises will be updated to ₺5 million, for small enterprises to ₺50 million, and for medium-sized enterprises to ₺250 million.
In addition, it will be decided that “companies’ investment goods imports will not be included in the calculation of the net exporting criterion”, thus preventing investment-based import expenditures from limiting net exports. Thus, investment-based import expenditures will not limit net exports and the number of exporting companies that can benefit from rediscount credits will increase.
With its previous decisions, the CBRT gradually increased the rediscount loan disbursement limits from ₺300 million to ₺3 billion, and in July, it eased the conditions for accessing the loan by removing conditions such as the 30% additional foreign exchange sales requirement and the advance foreign exchange sales requirement.
While the CBRT supports the monetary tightening process with selective credit and quantitative tightening decisions, it continues its support by considering exporters’ access to finance.
Source: Trthaber / Prepared by Irem Yildiz