New support packages will be implemented to improve access to financing under favorable conditions for exporters and companies with sensitivity to participation (Islamic finance) principles in Türkiye, through the support of the Treasury and Finance Ministry, according to a report on Sunday.
Efforts within the scope of the Treasury-backed guarantee system have been intensified as part of the economic program, Anadolu Agency (AA) reported on Sunday, citing information obtained from the ministry.
Accordingly, with the backing of the ministry, two new support packages will be implemented to enhance financing opportunities for exporters and companies that prefer participatory finance principles.
Accordingly, to support exporters, the existing support package – offering a TL 10 billion (around $240,000) guarantee limit for loans provided through Türkiye's official export credit agency (Türk Eximbank) via Ihracatı Geliştirme AŞ (IGE) will have its limit increased to TL 20 billion.
Additionally, a new support package with a TL 500 million guarantee limit, for loans provided by Türk Eximbank, will be introduced specifically for companies engaged in e-exports.
This package will have a 100% guarantee rate, with a maximum guarantee limit of TL 500,000 per beneficiary.
The second package will be carried out through Katılım Finans Kefalet AŞ (KFK) for companies that wish to use guarantees based on participation finance principles.
Therefore, a new support package with a guarantee limit of TL 4 billion will be launched to provide financing for the operational expenses of small and medium-sized enterprises (SMEs) and non-SMEs, backed by Treasury guarantees.
This package will have a guaranteed rate of 80%, with a maximum guarantee limit of TL 20 million for SMEs and TL 40 million for non-SMEs.
Significant support packages have been prepared for exporters under the Treasury-backed Guarantee System. Between 2020 and 2025, a total of TL 118.8 billion in credit has been provided to exporters, according to the AA report.
With four new support packages implemented in the first half of this year, an additional TL 42 billion in credit opportunities have been created for exporters. Moreover, as of September, TL 24.9 billion in credit had been provided to exporters under the system, representing 59% of total credit disbursements through the system during that period.
In addition, during this economic program period, Türk Eximbank's capital was increased from TL 13.8 billion to TL 55.3 billion.
With a further capital increase of TL 33.1 billion currently underway (following the obtained approvals), the bank’s total paid-in capital is expected to reach TL 88.4 billion by 2025.
Türk Eximbank’s cash and non-cash export supports reached $39.7 billion in the first nine months of the year, an increase of 15% in dollar terms compared to the same period last year. This support figure is expected to reach $52 billion by the end of the year.
Earlier, the daily rediscount credit limit was raised from TL 300 million to TL 4 billion, and foreign currency rediscount loans were reopened for use. The interest rate on rediscount loans was reduced and the requirement to sell an additional 30% of export revenues in rediscount credit usage was removed.
A new model was developed to enable companies engaged in high-tech and high-value-added production to benefit more from rediscount credits. The tax exemption for service exports was also increased by 30 percentage points, reaching 80%.
Treasury and Finance Minister Mehmet Şimşek, whose statement was included in the report, emphasized that numerous financial packages and practices have been introduced for exporters to date.
"We are strongly supporting our exporters through Türk Eximbank and other policies," he stated.
"We are always behind our exporters and the real sector, and we continue to support them."
"With these new support packages, we aim to ease financing access for companies that face collateral constraints. In the future, for lasting welfare growth, we will continue to prioritize investment, employment, production, and especially exports," he said.
