Financing Access for Exporters Made Easier

Easier Access to Financing for Exporters The Turkish Exporters Council (TİM) continues its work to facilitate exporters' access to financing. Within this scope, TİM and Eximbank established the Export Development Joint Stock Company (İGE) on 1 October with a capital of TRY 10 million under the coordination of the Ministry of Trade. The company was established as a fund open to exporters, aimed at eliminating collateral issues faced by exporters in accessing financing through Eximbank. Legislative processes continue for 61 exporter associations to participate in the company with the required capital contributions. The company is expected to begin serving exporters as of 1 January 2022. Through the Export Development Joint Stock Company, exporters who have been unable to fully benefit from various credit and support opportunities due to insufficient collateral will gain access to credit through guarantee mechanisms. In this way, exporters will no longer need to mortgage their factories and land to banks in order to obtain credit. In line with export-oriented growth model objectives, a specialized "Export Credit Guarantee Fund" targeting firms engaged in export and foreign exchange-earning services will contribute significantly to sustainable growth in export volume by enabling broader-based export distribution. Exporters faced two fundamental challenges. First, creating credit, and second, establishing letters of credit. Thanks to İGE, exporters will be able to directly access credit through a system backed by TİM's guarantee without collateral and will be able to utilize much larger volumes.