Buyer’s Credits Through Domestic Banks

In the course of our Domestic Banks Buyer’s Credits Program, we enable domestic banks to use buyer’s credits over foreign branches, subsidiary banks and correspondent banks.

Within the scope of our Buyer’s Credit through Domestic Banks Program, we extend buyer’s credit through foreign branches, subsidiaries and correspondent banks of domestic banks.

Scope

We are financing Turkish consumption and capital goods (to be) exported from Turkey (those that are indicated as Turkish origin in Free Zone Transaction Form or those “Origin Country Code” under the Customs Declaration Form of the Republic of Turkey is 052).

Term

Minimum credit term is 6 months. We provide financing with a maximum maturity of 2 years for consumption goods and a maximum maturity of 10 years for capital goods.

Guarantee

The borrowers of our Bank, within the scope of the Program, are domestic banks with a wide range of international branches, subsidiaries or correspondent banks. These banks might require guarantee (guarantees) from the foreign buyers of our exporters through their foreign subsidiaries, branches or correspondent banks.

Application

The application will be made by the foreign buyers directly to the foreign branches, subsidiary banks or correspondent banks of the domestic banks.

Ziraat Bank, Halk Bank, İş Bank and the Arap Türk Bank have already participated in the Program.

What are its advantages?

  • We are providing alternative finance resources to foreign buyer throughout the network of foreign branches, subsidiary banks and correspondent banks of domestic banks.
  • We enable our exporters to offer both products packages and financing packages to their foreign buyers.

What are the conditions?

  • First of all, the domestic banks that we allocated limit shall have a foreign branch, subsidiary bank or correspondent bank in the country where the import is (to be) performed and it shall be willingly to become indebted to our Bank on behalf of the foreign buyer.
  • It is expected that the products subject to the financing shall be exported from Turkey as Turkish origin (i.e. those that are indicated as Turkish origin in Free Zone Transaction Form or those “Origin Country Code” under the Customs Declaration Form of the Republic of Turkey is 052).

What are the costs?

The costs arising from the credits, allocated within the scope of the Program, shall be covered by the borrower itself.

Primary cost elements are as follows:

  • Interest (determined on transaction basis, taking into account the cost of funding of our Bank.)
  • Risk premium (calculated and collected in line with the OECD Arrangement on Officially Supported Export Credits.)
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Who is Eligible?

  • The foreign buyers, on behalf of which the foreign branches, subsidiary banks or correspondent banks of the domestic banks accept to become indebted, are the essential beneficiaries.
  • Our exporters benefit from the opportunity to offer “finance-package” to their foreign buyers in addition to their “product package”, which provides a competitive advantage to them.

Who can apply for it?

The credit application shall be made by the foreign buyer directly to the foreign branch, subsidiary bank or correspondent bank of the domestic bank; and these banks shall submit the application to our Bank.

Which Countries?

The overseas networks of all domestic banks, which have already participated in this Program, are given here.

Frequently Asked Questions

Who has to apply for the credit and how?

The foreign buyer, which will import goods from Turkey, shall apply directly to the foreign branches, subsidiary banks or correspondent banks of the domestic banks.

Which banks have involved in to the Program?

Ziraat Bank, Halk Bank, Is Bank and the Arap Türk Bank have already signed the Implementation Guidelines. Our negotiations with the relevant domestic banks with a wide overseas network continue.

Who is responsible for the repayment of the credit and the interest?

The Borrower Bank is responsible to make all the repayments arising from credit to our Bank. The foreign buyers, on the other hand, pay all relevant amounts arising from financing directly to the foreign branch, subsidiary bank or correspondent bank of the intermediary domestic banks.

Are any costs or commissions occurring through the given credits in course of this Program being charged to the exporter?

No. There are no costs or commissions under any title being charged to the Exporter by our bank.

How is the export amount ascertained?

In determination of the realized export amount, the value of goods exported from Turkey with one of the delivery terms of EXW, FCA, CPT, CIP, DAP, FAS, FOB, CFR or CIF are taken into account. The export shall be realized within the time limit of 180 days before or after the value date, on which our Bank remits the loan amount to the intermediary bank. The intermediary banks shall submit the documents (Custom Declaration Form of the Republic of Turkey or Free Trade Zone Transaction Form) to our Bank within 210 days following to the value date.

Is it possible to apply for the credit with the aim of refinancing?

Yes. The intermediary banks can apply to refinance export transactions, which have been already financed by its foreign branches, subsidiary banks or correspondent banks or the exporter itself. The export of a refinanced transaction shall be realized within 180 days before or after the value date of our financing.

Is it possible to provide financing for all of the international payment terms?

Yes, it is possible. Within the scope of this Program, the export transactions under all payment terms, cash against goods, letter of credit etc. can be financed.

Is it possible to provide financing for export transactions with all delivery terms?

No, this is not possible. While delivery terms EXW, FCA, CPT, CIP, DAP, FAS, FOB, CFR and CIF can be subject to the financing, the terms DAT and DDP cannot be financed.

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