A major supporter of exporters’ access to financing, Türk Eximbank targets to contribute more efficiently to Türkiye’s export-oriented growth strategy with the new services launched and with its revamped visage within the scope of its Strategic Transformation Program.
STRATEGIC TRANSFORMATION PROGRAM
TÜRK EXIMBANK TARGETS TO CONTRIBUTE MORE EFFICIENTLY TO TÜRKIYE’S EXPORT-ORIENTED GROWTH STRATEGY WITH THE NEW SERVICES LAUNCHED AND WITH ITS REVAMPED VISAGE WITHIN THE SCOPE OF ITS STRATEGIC TRANSFORMATION PROGRAM.
Strongly Carrying on in 2023 with the “Strategic Transformation” Program
Türk Eximbank launched the “Türk Eximbank Strategic Transformation Program” with the aim of more effectively supporting our country’s export strategies and flourishing the foreign trade ecosystem in line with the worldwide best practices in collaboration with its stakeholders. Under this program, Türk Eximbank is transforming into a structure that proactively supports the exporters that generate high added-value for the national economy and that pursue operations in line with our country’s export strategies. It also identifies the needs and obstacles of exporters and companies with export potential, expands its product and service array targeted at their needs, and improves exporters’ experience of making use of Türk Eximbank support schemes.
The Bank’s Strategic Priorities have been defined as SME Priority, Value-Added Export Priority, Collateral Diversity, Sectoral Focus, Focused Country Strategy, Digitalization, Broad Product and Service Array, Diversification of Funding Sources, Field of Activity and Structuring, Competence Transformation, Institutional Relations and Communications.
Also in 2023, our Bank will charge ahead with the realization of the projects covered in its Strategic Transformation Program.
Along this line, Insurance Development Program, IT Transformation Project, Sales Service and Operation Model Project, and Data and Reporting Project were prioritized in the coming year’s plan. In addition, the projects initiated in 2022 will be carried on.
Ranked at the Top of our Bank’s Strategic Priorities: Prioritizing SMEs…
As it did in 2022, the Bank will continue in 2023 to take steps to increase new SME customer acquisition and disbursement frequency, and will introduce new implementations to this end.
Accordingly, to bring our Bank’s support programs to a higher number of exporter SMEs, significant customer acquisition is targeted to be achieved by offering İGE guarantee option to customers in the Exporter SME Customer List, which will be obtained under our CBRT Cooperation Protocol.
In addition, rules will be defined which will allow offering term options that will increase new customer acquisition, mainly SMEs, as well as disbursement frequency in loans intermediated by banks, factoring companies and leasing companies, and actualizations will be monitored closely so as to revise the rules as necessary.
Supporting Highly Competitive Sectors Harboring Production and Employment Potential
In view of the changes in global supply chains and trends such as digital and green transformation, it is targeted to increase the share held in global trade by supporting high value-added and medium/high-technology sectors that possess international competitive strength and harbor production/employment potential and to ensure permanent and sustainable improvement in the current accounts balance.
Extending Support to the “Levelling Up Exports to Distant Countries Strategy “
Support will be extended to the Ministry of Trade’s target which is defined as increasing the range of goods and services export, and flourishing trade with high export-potential countries that are geographically distant.
Diversification of the Types of Collaterals
Collateralization, which is one of the major hurdles in exporters’ access to financing, is a topic on Türk Eximbank’s agenda. In 2021, awareness was increased regarding collaterals acceptable to Türk Eximbank besides letters of bank guarantee, and exporters were able benefit from the Bank’s credit programs against different collateral instruments of a financial nature. In addition to that, credit disbursements against İhracatı Geliştirme A.Ş. (İGE) guarantee commenced from March 2022. Our Bank will keep developing alternative collaterals in 2023 to facilitate exporters’ access to credit.
Continued Diversification and Broadening of Derivatives to Protect our Exporters against Currency, Interest Rate and Commodities/Precious Metals Risks
In order to let our exporters manage their currency, interest rate and commodity/precious metal price risks, derivatives such as forwards, options and swaps will continue to be offered at the most favorable terms, and publicity activities will be carried on to broaden the usage of these products; the same will also be diversified in line with exporters’ demands and needs.
Maintaining Solid Capitalization
On 29 December 2021, the Board of Directors approved increasing Türk Eximbank’s capital of TL 10 billion 800 million, which is fully paid-in, by TL 3 billion to TL 13 billion 800 million, which incremental amount will be paid by the Republic of Türkiye Ministry of Treasury and Finance, and the capital increase process has been finalized by having the capital increase registered before İstanbul Trade Registry Office on 3 February 2022.
New Program Developments
Besides increasing supports in 2022, the Bank introduced Swap-Based Rediscount Credit Program for financing the working capital needs of manufacturers and manufacturer/exporter firms producing goods for export and firms undertaking FC-earning services and activities and “Manufacturing Credit for Exporters” was introduced for obtaining specific funds at favorable terms from overseas financial institutions and export credit agencies for financing exporters’ raw material, intermediate goods and investment goods procurement.
In 2023, the Bank targets to:
- Work towards establishing Investment Incentive Credit program to finance machinery/equipment etc. domestic investments exporters will take on under Investment Incentive Certificate, which will be funded from CBRT or other sources.
Introduction of New Digital Solutions for our Exporters
E-transformation projects will be carried on for digitalization of our Bank’s work processes, and operational efficiency will be increased through integrations with external institutions, while diversification of products and funds will be ensured.
