Türkiye’s central bank on Thursday announced it had reduced the interest cost of rediscount credits, as part of authorities' efforts to make financing more accessible for exporters.
"The new interest cost of rediscount credits will be applied as 29.93%," the Central Bank of the Republic of Türkiye (CBRT) said in a statement. That marks a reduction from 35%.
The central bank also said it had updated the rule that determines the discount rate for rediscount credits for export and foreign exchange earning services.
The new rule stipulates that the interest cost of rediscount credits will be a ratio of the policy rate, it noted.
The move came after the central bank lowered its key interest rate by 2.5 percentage points to 47.5% on Thursday, carrying out its first rate cut in nearly two years as it tries to control inflation.
It trimmed the one-week repo rate after an 18-month tightening effort that marked a shift to more conventional policymaking. The rate, last cut in early 2023, had been held at 50% since March.
Annual inflation dipped to 47% last month in what the central bank believes is a sustained fall toward a 5% target over a few more years. Inflation had touched 85% in 2022 and 75% earlier this year.
Treasury and Finance Minister Mehmet Şimşek on Friday said the government would continue supporting high-value-added production and exports to enhance Türkiye's competitiveness and efficiency.
In a post on social media platform X, Şimşek recalled earlier measures he says were taken as part of the government's medium-term economic program.
He said rediscount loan limits were increased from TL 300 million ($8.52 million) per day to TL 4 billion, while the additional export revenue sales condition for rediscount credits was reduced from 30% to 0%.
Authorities had also lowered the ratio of foreign exchange revenues that exporters are required to sell to the bank to 30% from 40%.
The capital of the Türk Eximbank has been increased to TL 55.3 billion, from TL 13.8 billion, said Şimşek.
He also said they had expanded the tax exemptions on service exports from 50% to 80%.
Separately, Trade Minister Ömer Bolat on Friday said authorities were relaunching foreign exchange rediscount loans.
Industry representatives had called for these loans to be reopened for use after nearly two years.
Bolat said monthly loan limits would be set at $150 million per month. A maximum loan of $1.5 million will be available per firm, issued through Türk Eximbank.
Exporters will have access to rediscount loans with a maturity of up to 360 days, including foreign currency options.
"We are doing this to enable more exports," said Bolat.
Rediscount loans are a type of financing offered under the partnership of the central bank and Türk Eximbank. They aim to provide exporters of goods and foreign-exchange-earning services with cost-effective credit options.
