The Treasury and Finance Ministry will launch a new support package, focusing on exporters, with a guarantee limit of TL 41 billion (nearly $1.13 billion), Anadolu Agency (AA) reported on Saturday.
This initiative is expected to generate approximately TL 50 billion in loan volume for exporters and companies with foreign exchange sensitivity.
The Treasury-backed guarantee system designed to increase exporting companies' access to financing under favorable conditions is being used effectively, said Treasury and Finance Minister Mehmet Şimşek, suggesting steps were undertaken to support exports and exporters.
"We stand by our businesses which produce, export and create employment. We are launching the new package within 15 days. In line with the demands from the sector, we will continue to support our businesses and facilitate their operations," he said.
Şimşek also stated that they are working on legislative changes to cover the costs incurred by companies stemming from foreign exchange transactions, ease the functioning of commercial life, and reduce inflationary effects in the economy and that they are in the final stage of these efforts.
The first package prepared within this scope provides a guaranteed limit of TL 30 billion to companies through Export Development Inc. (IGE). According to the AA report, the guaranteed upper limit per beneficiary will be TL 45 million for small and medium-sized enterprises (SMEs) and TL 90 million for non-SME companies.
Again, through the IGE, financial support will be provided for investments made by exporting SMEs for digital transformation. For this purpose, a new support package with a guaranteed limit of TL 1 billion was created. The upper guarantee limit of the package per beneficiary is planned to be TL 16 million.
Additionally, another leg of the support work will consist of the package prepared for companies requesting to use guarantees in accordance with the principles of participation finance through Katılım Finans Kefalet AŞ (KFK).
The Turkish government has been supporting the country’s exporters by increasing daily rediscount credit limits and through the state-owned export credit agency, Türk Eximbank.
As part of the efforts to support exporters, authorities have also eased exporters’ foreign exchange obligations as the mandatory conversion rate for foreign currency earnings repatriated to Türkiye has been lowered to 25% from 30%. Previously, exporters were required to sell a portion of their foreign income to the central bank.
Following the introduction of the economic program, which mainly targets lowering stubborn inflation while aiming for sustainable growth, the daily rediscount credit limit was increased from TL 300 million to TL 4 billion to support exporters.
Meanwhile, the capital of Türk Eximbank increased from TL 13.8 billion to TL 55.3 billion.
At the same time, programs such as the updated Investment Commitment Advance Loan (YTAK) and HIT-30 were put into effect to support value-added production.
Türkiye's exports have witnessed an upward momentum in recent years, reaching a record-breaking $262 billion last year.
