Objectives and activities of the Bank

Vision

The Bank's objective is to develop exports, to diversify exported goods and services, to introduce new markets for exported goods, to increase the share of exporters in international trade, to provide the necessary support in their initiatives, to provide exporters and contractors and investors operating abroad with competitiveness and assurance in international markets, to support and encourage investments to be made abroad and the production and sale of investment goods for export purposes.

Mission

In order to fulfill its objectives, the Bank may carry out the following activities:

1. Provide short, medium, and long-term financing, through buyer and/or seller credits, for goods and service exports as well as for foreign exchange–earning activities at both pre-shipment and post-shipment stages,
2. Provide guarantees for credits that exporters obtain from domestic and foreign banks and financial institutions for the purpose of export financing,
3. Extend credits, participate in financing, and provide insurance and guarantees for the development of overseas contracting services and foreign investments,
4. Encourage the sale of goods and services by providing export credit insurance to cover exporters against commercial and political risks that may cause losses, and by offering exporters related guarantees,
5. Extend export-oriented credits and provide guarantees to domestic and foreign banks and financial institutions,
6. Provide credit insurance to cover the sales, either within the country of production or from that country to other countries outside Türkiye, of goods that are produced by companies abroad in which exporters directly or indirectly hold at least fifty percent of the capital; or manufactured by foreign companies under contract for sale under the brand names of such exporters or of companies in which they directly or indirectly hold at least fifty percent of the capital (including brand names belonging to companies within the same corporate group),
7. Provide credit insurance to cover the sales, either within the country of production or from that country to other countries outside Türkiye, of goods produced by companies abroad in which exporters directly or indirectly hold at least fifty percent of the capital,
8. Utilize reinsurance facilities and provide reinsurance coverage,
9. Extend credits for financial leasing transactions abroad and to provide guarantees in relation thereto,
10. Extend credits for the domestic manufacture and sale of investment goods intended for export or other foreign exchange–earning activities,
11. ıObtain loans and funding from domestic and foreign financial institutions as well as from money and capital markets,
12. Operate within the framework prescribed for development and investment banks under the Banking Law, and perform the duties assigned under the relevant legislation,
13. Act as an insurance agency,
14. Request any documents and information related to the activities of natural and legal persons, institutions, and organizations to which it extends credit, participates in financing, provides guarantees, or insures, whether they are public or private entities; and monitor and control the practices of its clients with whom it has credit, guarantee, or insurance relationships,
15. Lease, purchase, sell, and otherwise dispose of immovable properties for its own needs; acquire real estate for the collection of receivables; and obtain all types of collateral, including mortgages on immovable property, against the credits extended and guarantees provided,
16. Maintain foreign exchange positions, hold foreign currency funds, and engage in all types of foreign exchange, capital market instruments, and derivative financial transactions,
17. Obtain rediscount credits from the Central Bank of the Republic of Türkiye and issue securities denominated in TRY and/or foreign currency,
18. Establish or participate in domestic and foreign subsidiaries engaged in activities aligned with the Bank’s objectives; purchase, sell, and intermediate the sale of securities,
19. Conduct or commission research, development, and technical training activities, and provide technical assistance to fulfill its duties,
20. Extend credits for export-oriented purchases of brands, patents, knowledge/technology transfers, and technical cooperation,
21. Carry out other activities and transactions that contribute to the fulfillment of its objectives.

TURK EXIMBANK IN BRIEF

In the early 1980s, traditional import substitution policies began being replaced by foreign oriented policies and thereafter exportation gained a high degree of importance to the Turkish economy. The task of supporting exports within this reorganization process was undertaken by Turk Eximbank, established in 1987. Turk Eximbank was established in 1987 as Türkiye’s official export credit agency and began to implement its programs at the beginning of 1988.

Turk Eximbank meets the financial needs of export sectors in line with the developments taking place in the global and Turkish economies. When doing so, the Bank serves extensive lineup of customers ranging from domestic manufacturers to international contractors and carriers, and from those involved in the tourism industry to those providing FC earning services such as software and project development and consultancy.

Turk Eximbank conducts “International Credit and Guarantee” programs aimed at developing economic and political relations between Türkiye and other countries and “Credit Insurance” programs that cover export sector’s exposure against political and commercial risks, as well as “Export Credit” programs, which provide the export sector with low cost financing.

Since its establishment, Turk Eximbank has been constantly introducing new credit programs that address the demands and needs of exporters while making changes in existing programs in order to provide customers with the financing that they need.

MAIN OBJECTIVES OF TURK EXIMBANK

As the sole official export credit agency in Türkiye, Turk Eximbank plays an especially important role through its policies in support of exports. The Bank’s main objectives are:

• Increasing the volume of exports;
• Diversification of export goods and services;
• Developing new export markets;
• Increasing the exporters’ share of international trade and providing necessary support for their initiatives;
• Gaining competitiveness and bringing assurance to exporters, overseas contractors and investors on the international markets; and
• Promoting and supporting the production and sale of investment goods for export through overseas investments.

As a means of aiding export development, Turk Eximbank offers specialized financial services to exporters, export‑oriented manufacturers, and overseas investors and contractors through a variety of short, medium‑ and long‑term cash and non‑cash credit, insurance and guarantee programs.

FULLY-INTEGRATED SERVICE

Today, Turk Eximbank serves exporters with exactly the same systems deployed by those in the most advanced countries. The Bank supplies an extensive lineup of financing products to international contractors, investors, shippers, tourism operators, and other cross border businesses. Furthermore, unlike the export credit agencies of many other countries, Turk Eximbank’s ability to combine credit, guarantee, and insurance products under the same roof allows it to provide its customers with fully integrated service.

SUPPORTING SUSTAINABLE GROWTH

Ever since its inception, Turk Eximbank has been steadily increasing volume and different kinds of credit resources that it supplies to exporters, especially SMEs, in line with their needs and demands while also improving the terms, conditions, and limits of its lendings. Turk Eximbank strives to increase the share of high added value goods in Türkiye’s overall export mix. Besides offering export credits, the Bank also seeks to expand its geographical footprint by taking part in international projects and trade finance and to encourage Turkish exporters to venture into new markets by eliminating their country risks through credit insurance.

PRIORITY TO SMEs

In all of the lending programs, give priority to firms based in the so-called priority development areas and to SMEs.

CAPITAL STRUCTURE

The Bank has adopted the Registered Capital System in accordance with the Turkish Commercial Code No. 6102.

The registered capital ceiling of the Bank is TRY 120,000,000,000.00 (one hundred twenty billion Turkish Liras), divided into 120,000,000,000 (one hundred twenty billion) registered shares, each with a nominal value of TRY 1.

The issued capital of the Bank is TRY 99,870,000,000.00 (ninety-nine billion eight hundred seventy million Turkish Liras), divided into 99,870,000,000.00 (ninety-nine billion eight hundred seventy million) registered shares, each with a nominal value of TRY 1.

The previous capital amounting to TRY 88,370,000,000.00 (eighty-eight billion three hundred seventy million Turkish Liras) has been fully paid-in. The increased amount of TRY 11,500,000,000.00 (eleven billion ve hundred million Turkish Liras) has been paid-in cash by the Treasury.

The entire capital of the Bank is owned by the Treasury.

TURK EXIMBANK’S ROLE IN FUNDING EXPORT ACTIVITIES

Turk Eximbank’s role in funding export activities has steadily increased over the years. The two most important reasons for this are, first, to eliminate the direct export incentives implemented in previous years in accordance with Türkiye’s liabilities against international institutions regulating the world trade, and second, due to the commitment of Türkiye about compliance with the commercial and competition policies of the EU as well as of the Customs Union established in 1996. As a result of these developments, the funding of exports through credit, guarantee and insurance programs has become the most significant stimulant in the market in terms of increasing the competitiveness of Turkish exports on international markets. The export credit insurance system that gained currency in Türkiye at the end of the 1950s was re introduced by Turk Eximbank in 1989. The system was initially designed to provide cover against commercial and political risks only for short term export claims, but its scope was later expanded to cover medium and long term goods and services claims. The operational framework of Turk Eximbank according to its “Establishment Principles and Charter” is shaped by its annual programs. These programs, which the Executive Board must follow, enter into force by decision of the Supreme Advisory and Credit Guidance Committee.

The Supreme Advisory and Credit Guidance Committee is chaired by the afiliated Minister and comprises:

• The Deputy Minister of Treasury and Finance,
• The Deputy Minister of Commerce,
• The Deputy Minister of Industry and Technology,
• The Chairman of the Central Bank of the Republic of Türkiye,
• The Deputy Chairman of Strategy and Budget,
• The Chairman and Vice-Chairman of the Board of Directors and the General Manager of the Bank are natural members of the Board.

Within the framework of the objectives of the annual programs, whether generally or related to country or sector specific groups, Turk Eximbank’s Board of Directors and its General Directorate are authorized to carry out assignments within the limits of a range of credit transaction, guarantee and insurance programs.

Historical Overview

The establishment of Türk Eximbank was resulted from the export growth strategy adopted by Turkey in the early 1980s. The composition of Turkish exports shifted from predominantly agricultural goods to industrial goods. This created increased financing needs for exporters, which in turn resulted in increased pressure on commercial banks in Turkey. For these reasons, the decision was taken to establish an official export credit agency, in accordance with general practices in most of the developed world.

Türk Eximbank was chartered by the Cabinet on the 21st August 1987 by Decree no.87/11914, following the order of Law No. 3332 (March 1987) by maintaining the juridical and legal personality of State Investment Bank. In effect, according to the charter, Türk Eximbank took over the set up, legal entity, capital and assets of the State Investment Bank, but at the same time was transformed into a joint stock company subject to the provisions of Private Law. The Articles of Association were proclaimed in Trade Register Newspaper on the 11th August 1987.

The Principles Regarding Establishment and Duties of the Export Credit Bank of Turkey”, which has since been repealed, was prepared to reflect the changes in legislation required regarding the activites of the Bank in line with the Principles Appendix to Decision No. 87/11914 regulating the establishment of the Bank, Turkish Commercial Code No. 6102, banking legislation, and global financial and economic developments that have occurred since the Bank’s establishment, and was published in the Offical Gazette dated 23 February 2013 as an attachment to Decision 2013/4286 of the Board of Ministers.

Türk Eximbank has played a crucial role in securing the stable export growth experienced in late 1980s following Turkey’s agreement to eliminate export subsidies in accordance with GATT/WTO provisions and the subsequent elimination of all direct incentives to exports. Since its establishment, Türk Eximbank has continued to diversify and expand its activities so as to meet the requirements of Turkey’s economic policy in a better way. The globalisation and internationalisation of markets are creating greater challenges for the Turkish firms, but are also offering new opportunities. With the conscious that opening to new markets is as important as keeping existing market shares, the instruments of trade and project finance need to be enlarged in order to meet the new challenges of an increasingly integrated world economy. To this end, the Bank has introduced a wide range of innovative measures and facilities to improve its services and has made diligent efforts to build up its financial strength and enhance its corporate capability. Efforts at Türk Eximbank have focused on achieving product and country diversification of Turkish exports, encouraging further changes in the composition of exports towards high technological products.

Türk Eximbank currently supports Turkish exporters, contractors and investors through various credit, guarantee and insurance programs. The Bank does not compete, but works closely with commercial banks encouraging them to increase their support for the export sector. As well as providing direct lending, the Bank also provides insurance and guarantees to Turkish commercial banks to encourage them to finance export transactions backed by sales made on deferred payment terms. In this way, Türk Eximbank channels some portion of commercial banks’ funds into export financing.

Türk Eximbank is committed to confirming to the internationally accepted rules and regulations such as the OECD Consensus. After the establishment of a Customs Union between Turkey and the EU in 1996, Turkey made arrangements to harmonize its legislation with that of the EU in related fields, including officially supported export credits. Among Türk Eximbank’s programs, buyers’ credit, guarantee and insurance programs are subject to this legislation.

Türk Eximbank is a full member of the Berne Union since April 1994 and the founder member of the Aman Union since 2009. The Bank also represents Turkey at the Group on Export Credits and Credit Guarantees and the Participants Group (in which Turkey has an observer status) of the OECD. Türk Eximbank makes efforts to improve its international relations with export credit agencies (ECAs) and always seeks all available alternative opportunities for co-operation to provide financing for projects undertaken in cooperation with Turkish and foreign partners in third countries.

BOARD OF DIRECTORS

• Organizasyon Şeması

Company Details

Head Office Address

Inkılap District, Dr. Adnan Büyükdeniz Str. No:19 34768 Ümraniye / ISTANBUL

Telephone: +90 216 666 55 00