Taking the decision to raise the registered capital to 10 billion liras, Türk Eximbank will announce its leadership by passing over South Korea by 28 percent in terms of the share of financing of the country exports next year.
Türk Eximbank will increase its registered capital to 10 billion liras. Türk Eximbank, which enlarges its targets in order to provide more services to Turkey’s exports, also changes to ‘pradigma’. The bank, which had previously provided a letter of guarantee from banks and supported the exporters, will find and support exporters who produce high value added products in the new period. It will give priority to firms that are oriented towards advanced technology production and export. We will make credit transportation easier.
Türk Eximbank has increased its support for Turkish construction companies engaged in international contracting activities within the scope of foreign currency generating activities as well as aiming to support companies and institutions that buy Turkish goods more broadly. This year, Türk Eximbank, which will finance 26 percent of Turkey’s exports, aims to become the leader in the world by passing through South Korea with 28 percent in 2018.
Increases his capital by 10 billion
Türk Eximbank General Manager Adnan Yıldırım shared the following information with a group of economic journalists after signing a $ 640 million syndication loan with 23 banks and financial institutions led by Japanese Mizuho Bank in London:
We have decided to increase our registered capital to 10 billion liras. We currently have $ 5.4 billion in registered capital. As a result of the conditions, we do not expect to reach one billion euros in capital. But gradually we reach in a few years. With this move we will be able to support exporters more.
Turk Eximbank borrows from the world comfortably …
Ertan Tanrıyakul, Assistant General Managers, informed Societe Generale of a $ 200 million loan from Societe Generale with a 3-year maturity, while stressing that the $ 640 million syndicate they signed is high. According to the syndication they provided in March, the $ 640 million syndicate underlined the lower cost. He also reminded that they will sign a $ 200 million loan agreement with China Development Bank this week.
General Manager Adnan Yıldırım continued as follows:
We converted the 640 million dollar syndication with 110 percent. If the debts of our debts are usually one year, we can give the exporter more long-term credits to the foreign exchange earning activities as we turn Syndications. We meet short term requests from our own sources. We use the resources provided by borrowing for long-term demands.
Bearing in mind that Türk Eximbank could keep foreign exchange rate interest rates below averages of the sector, Yıldırım gave the following information:
The rate applied to the dollar in the banking sector is around LIBOR plus 5-5.5. We have LIBOR plus 2-2.5. The last $ 640 million of our syndication has been realized at EURIBOR plus 90 basis points for the euro zone and LIBOR for the dollar zone now over the 100 basis point interest rates. We had a lower cost compared to the previous ones.
Having said that the low interest rates on loans in line with the cost-effective resources have caused an extraordinary increase to Türk Eximbank, General Manager Adnan Yıldırım stated the following:
For low-interest loans, those who want to ‘source’ somewhere in between. Although we do not have the right to use credit, we see those who try to infiltrate. We are removing them as much as possible. In fact, we should not have such requests. Or 50 thousand dollars worth of exports, and 5 million dollars are demanding credit. This is not true either. There are those who demand TL loans continuously. Of course, while the TL loan rates in the banking sector are 20-21%, the interest rates at 6-7% level in Türk Eximbank are very attractive. Those who know it continuously demand a TL loan. This is not true either. We can use TL loans based on our own capital of 5.4 billion liras. Our main goal is to provide loans to support exports.
There are 65 thousand exporter companies in Turkey. If we are going to use TL loans for all of them, we can not afford to pay for it. We also waste resources. Those who try to put the guy together for the TL loan do not do it. If the company is indeed an exporter or if it has foreign exchange revenue generating activity, it should also learn to borrow in foreign currency. We need to use our own resources and therefore Turkish lira loans in the right place and form. It has nothing to do with the profit of Türk Eximbank. We are not the institution that targets high profitability. But we also have to be able to dissolve our own capital. It is also necessary to provide source of exporter …
This year will give you 25 billion $ …
The General Manager Yıldırım stated that 41.6% of the export credits and 42% of the round accounts were covered by Türk Eximbank, and announced the loans they would use in 2017:
In the first half of the year, we used 15 percent more loans compared to the same period of the previous year. We used $ 18.7 billion in loans in the first six months. As a matter of fact, our goal was even higher. Nevertheless, at the end of the year we will be providing an important source of exporters. Depending on the sources, we will use an export credit of $ 25.4 billion this year. We are also Turkey’s largest receivable insurance company. In this direction, we continue our activities without slowing down. The amount of insurance shipped was 7 billion dollars. It increased by 33 percent compared to the same period last year.
Among all the Eximbankes in the world, Türk Eximbank ranks first among the supporters of exporters. This year we will finance 26 percent of Turkey’s exports. South Korea is shown as an example of supporting the exporter with the finger. So … South Korea supports 27 percent of its exports now. Our target as Türk Eximbank is to pass Korea by 28% in 2018.
Source : F5 Haber