Export Credit Bank of Turkey (Türk Eximbank), which was established in 1987, is the official export credit agency in Turkey. The Bank is a fully state-owned bank acting as the Turkish government’s major export incentive vehicle in Turkey’s sustainable export strategy. As Turkey’s official export credit agency, Türk Eximbank has been mandated to support foreign trade and Turkish contractors/investors operating overseas. Türk Eximbank is making rapid progress towards fulfilling its
mission and taking its place amongst export credit agencies in the world.

The Bank currently supports Turkish exporters, contractors and investors through various credit, guarantee and insurance programs similar to export credit agencies of developed countries. It engages in direct lending activities as well as implementing insurance and guarantee
schemes within the same institution. Türk Eximbank has introduced export credit insurance to Turkish exporters in 1989. Currently, Türk Eximbank provides cover for Turkish exporters, against commercial and political risks by offering a variety of insurance programs for their exports to 238 countries.

Apart from its Head Office in İstanbul, Türk Eximbank has two branch offices, one of them is Ankara District Office, other one is İzmir Branch. Bank has also seven liaison offices in Denizli, Kayseri, Gaziantep, Bursa, Adana, Trabzon and Konya.

 

 

Corporate Strategy

As Turkey’s official export credit agency, Türk Eximbank has been mandated to support foreign trade and Turkish contractors/investors operating overseas through various credit, guarantee and insurance programs. Providing financial support for Turkish exporters under the same terms and conditions enjoyed by their competitors abroad has become vital not only for creating new markets for Turkish exporters but also for sustaining their shares in traditional markets. It is from this base that Türk Eximbank strategies have been formulated.

Türk Eximbank’s main objectives are to increase the competitiveness of Turkish exporters and contractors working abroad and to create opportunities for them in new markets, especially in the Central and Western Asian Republics, the Russian Federation, Eastern Europe and African countries, in addition to neighbouring countries.

Since 1980, an export-led growth strategy has been adopted by the State and successive governments have formulated their annual programs within the framework of this state policy. Türk Eximbank has a crucial and expanding role in the implementation of this strategy and its operations reflect Turkish government policies. The strategy of Türk Eximbank is set in its annual programs and is formulated in accordance with current Turkish economic policies.

 

Emphasis on Non-Cash programs and Longer Term Schemes

To date Türk Eximbank has inevitably concentrated on short-term trade financing. Working capital loans provided to small and medium scale exporters as well as to foreign trade companies have taken a significant share. However, in the long-run, Türk Eximbank intends to place more emphasis to guarantee and insurance programs and medium and long-term trade and project finance, while leaving short-term trade financing to Turkish commercial banking system. Türk Eximbank believes that in the long-run overseas construction and investment will play an important role in increasing the foreign exchange earnings of Turkey.

 

Channelling of Commercial Bank Resources

A proportion of Türk Eximbank’s funds arise from borrowings from commercial banks and Türk Eximbank is able to indirectly channel part of the Turkish commercial banks’ reserves to export financing. Discount programs is another tool used to achieve this aim. In addition, in offering guarantee schemes to commercial banks, Türk Eximbank is creating a risk free environment for the banking sector to encourage them to engage directly in export financing.

 

Increased Focus on Small and Medium Scale Enterprises

Türk Eximbank aims to increase the focus of its programs on helping small and medium scale enterprises (SMSEs). Such enterprises play an important role in the Government’s strategy, particularly since the establishment of the Customs Union with the EU. SMSEs usually experience difficulties in passing the rigid qualification tests for loans, even if they are fully capable of complying with the terms of their export contracts. Türk Eximbank, therefore, has placed special importance on SMSEs in its strategy.

 

Focus on International Co-operation

Türk Eximbank seeks to improve international relations with other export credit agencies and international financial institutions. Türk Eximbank also explores all opportunities to co-operate with foreign institutions on the financing of joint venture projects involving Turkish and foreign partners in third countries.

While forming strategies of the Bank and implementing them, Türk Eximbank is committed to conforming with the internationally accepted rules and regulations set by the WTO, the OECD Consensus, the EU and the Berne Union. Moreover, the main elements of the Bank’s medium and long-term strategy are formulated to comply with the eventual full incorporation of Turkey in the EU.

 

Sound Financial Structure

Profit is not the first aim of Türk Eximbank, but while expanding its business volume Türk Eximbank tries to sustain a sound financial structure. In this context, Türk Eximbank believes that it is very important to implement effective strategies and procedures to control credit risk, liquidity risk, and asset/liability risk.