TİM and İş Bankası Partner to Provide Exporters with $500 Million Support

Turkey's Exporters Assembly TİM continues its work within an action plan launched to support Turkey's fight against Covid-19. In this process, TİM signed a protocol with Türkiye İş Bankası to enable exporters to access financing that includes numerous benefits, including favorable interest rates. With the protocol that will open doors for exporters, the driving force of Turkey's economy, a total cash credit package of USD 500 million in Turkish Lira and foreign currency is being offered.

Under the protocol, TİM members can use credit on advantageous terms for trade fair participation, while the Maximiles TİM Exporter Card enables earning miles on commercial expenses as well as exports, along with various accommodation, reservation and overseas departure expense benefits. Special interest rate credits will be offered to women entrepreneurs, and all credit-using exporters will receive discounts on services such as insurance and training.

  With 61 exporter associations and 27 sectors representing 95,000 exporters, Turkey's Exporters Assembly (TİM), the single umbrella organization for exports in Turkey, signed a cooperation protocol with Türkiye İş Bankası to provide exporters—one of the country's most important economic drivers—with a highly advantageous support package. The signing ceremony took place at TİM headquarters under social distancing rules, with the participation of TİM Chairman İsmail Gülle and Türkiye İş Bankası General Manager Adnan Bali. Under the protocol, exporting companies are being offered a total cash credit package of USD 500 million in Turkish Lira and Foreign Currency, featuring favorable credit terms and products. Under the package, to reach a larger number of exporters, each company is provided credit up to a maximum of USD 150,000-Euro or TRY 1,000,000. All TİM member exporters are offered "Export Foreign Exchange Credit" with an annual interest rate of 2.40% on 1-year maturity dollar credits and 1.15% annually on Euro credits. The export financing support package includes Fair Participation Credit, Maximiles TİM Exporter Card, special interest rate credits for women entrepreneurs, as well as discounts on services tailored to exporters' needs such as insurance and training.

İsmail Gülle: "Strong and timely financing is of great importance for sustainable exports"

TİM Chairman İsmail Gülle, noting that increasing the credit volume for exporters and facilitating exporters' access to financing will help companies weather the pandemic period with minimal damage, said: "The purpose of all our work is to advance our exports, because we know that 'Turkey will rise with exports.'" Elaborating on the details of the cooperation, Gülle continued: "Within the framework of cooperation, three points are particularly important. Low credit interest rates are an important factor in export financing. The fact that the package scope is USD 500 million is also a very important step for us. Furthermore, within the package scope, more advantageous conditions have been created for women entrepreneur exporters in credits they will use, in order to ensure positive discrimination. Women entrepreneur exporters will be subject to more favorable interest rates on credits they use with the same maximum limits (up to TRY 1 million or USD 150,000-Euro): 2.25% for dollar-denominated credits and 1% for Euro-denominated credits. Additionally, for our women and young entrepreneurs, export credits sourced from Eximbank will be provided up to TRY 100,000 and USD 500,000-Euro, and a 25 basis point discount will be applied on foreign currency denominated credits. Another advantage that exporters will benefit from will be in fair participation credits. Under the package, in virtual and physical fairs, spot foreign exchange credits with 1-year maturity and export commitment up to USD 100,000-Euro will carry interest rates of 2.25% for dollar-denominated credits and 1% for Euro-denominated credits. On e-guarantee letters, a very low commission of 0.9% will be charged for the first year.

Under the protocol scope, companies using credit benefit from many other advantages including 10% discount on commodity transport insurance, favorable interest rates on correspondent-guaranteed export factoring, and 50% discount on WORLDEF prime membership.

  Book donations to the library in our foreign trade complex also represent an important gesture by Türkiye İş Bankası, included in the package scope. Strong and timely financing is of great importance for sustainable exports. Due to the pandemic we experienced in recent months, the Economic Stability Shield Package announced by our President and the Financing Package announced by our Treasury and Finance Minister have addressed the needs of exporters. On behalf of the export family, I thank our President and our Treasury and Finance Minister for their continuous support."  

Adnan Bali: "We have joined forces with TİM with the goal of creating a strong Turkey in international markets"

Türkiye İş Bankası General Manager Adnan Bali said: "With the responsibility that comes from being Turkey's Bank, we continue to resolutely place all our resources at the service of our country and nation with a good-faith and sincere approach, as an institution that always displays its national stance unequivocally. Exports, which play a critical role in the growth of the country's economy, are of particular importance in emerging from the difficult period being experienced, especially during the pandemic process. As a bank, we are focusing on this area with special concentration. To mitigate the pandemic's effects on employment, production, trade, and payment systems and to ensure continuity of economic activity, we are implementing numerous actions. We have ongoing economic support packages. With the protocol we signed with TİM today, we are offering terms and payment options suitable for every need in export financing. Within the scope of the protocol, we have kept our interest rates at the lowest possible level to support our exporters. We believe that the low interest rates we apply to export foreign exchange credits are critical not only for our exporters but for all sectors of the economy. Uncertainties regarding the course of the pandemic may continue to present a fragile outlook for external demand for some time. However, we anticipate that with the second half of the year, our export performance will strengthen in line with conditions," he said.