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$350M in receivables from Turkish exporters from Russia become dubious

by Daily Sabah

ISTANBUL Jan 21, 2016 - 12:00 am GMT+3
by Daily Sabah Jan 21, 2016 12:00 am
After the sanctions applied to Turkey's fresh fruits and vegetables by Russia, the textile sector might also need the government's help. A total of 178 firms that each export more than $10 million to Russia - $350 million in total - might not be able to receive these funds, according to Istanbul Textile and Raw Materials Exporters Union Chairman İsmail Gülle. Moreover, Gülle asked for the maturities of loans granted to be extended. He further requested that these loans become interest-free. There are around 60,000 employees working for these 178 firms, and most of the companies do not believe they will be able to receive these funds.

Speaking to Dünya newspaper, Gülle said from Nov. 21, 2015 - the day the crisis emerged over Turkey's downing of a Russian military aircraft - to Dec. 31, the exports with Russia decreased 80 percent to $10 million. Furthermore, textile exports to Russia were $475 million in 2015, a drop of 40 percent on an annual basis, yet the second-biggest market for Turkey continues to be Russia. Gülle stressed that they have listed the firms that account for more than half of the export turnover. He added that their report was submitted to the related ministries. "These firms are facing serious difficulties. The goods ordered cannot be delivered. They cannot receive what they earned. Like in the fresh vegetable and fruit sector, these firms need to be protected in terms of loans provided to them by extending the terms of loans and not requiring interest payments," Gülle said.
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