History of Türk Eximbank

Türk Eximbank

Historical Overview

The establishment of Türk Eximbank was resulted from the export growth strategy adopted by Turkey in the early 1980s. The composition of Turkish exports shifted from predominantly agricultural goods to industrial goods.

This created increased financing needs for exporters, which in turn resulted in increased pressure oncommercial banks in Turkey. For these reasons,the decision was taken to establish an official export credit agency, in accordance with general practices in most of the developed world.

Türk Eximbank was chartered by the Cabinet on the 21st August 1987 by Decree no.87/11914, following the order of Law No. 3332 (March 1987) by maintaining the juridical and legal personality of State Investment Bank. In effect, according to the charter, Türk Eximbank took over the set up, legal entity, capital and assets of the State

Investment Bank, but at the same time was transformed into a joint stock company subject to the provisions of Private Law. The Articles of Association were proclaimed in Trade Register Newspaper on the 11th August 1987.

Türk Eximbank has played a crucial role in securing the stable export growth experienced in late 1980s following Turkey’s agreement to eliminate export subsidies in accordance with GATT/WTO provisions and the subsequent elimination of all direct incentives to exports.

Since its establishment, Türk Eximbank has continued to diversify and expand its activities so as to meet the requirements of Turkey’s economic policy in a better way.

The globalisation and internationalisation of markets are creating greater challenges for the Turkish firms, but are also offering new opportunities. With the conscious that opening to new markets is as important as keeping existing market shares, the instruments of trade and project finance need to be enlarged in order to meet the new challenges of an increasingly integrated world economy. To this end, the Bank has introduced a wide range of innovative measures and facilities to improve its services and has made diligent efforts to build up its financial strength and enhance its corporate capability. Efforts at Türk Eximbank have focused on achieving product and country diversification of Turkish exports, encouraging further changes in the composition of exports towards high technological products.

Türk Eximbank currently supports Turkish exporters, contractors and investors through various credit, guarantee and insurance programs. The Bank does not compete, but works closely with commercial banks encouraging them to increase their support for the export sector. As well as providing direct lending, the Bank also provides insurance and guarantees to Turkish commercial banks to encourage them to finance export transactions backed by sales made on deferred payment terms. In this way, Türk Eximbank channels some portion of commercial banks’ funds into export financing.

Türk Eximbank is committed to confirming to the internationally accepted rules and regulations such as theOECD Consensus. After the establishment of a Customs Union between Turkey and the EU in 1996, Turkey made arrangements to harmonize its legislation with that of the EU in related fields, including officially supported export credits. Among Türk Eximbank’s programs, buyers’ credit, guarantee and insurance programs are subject to this legislation.

Türk Eximbank is a full member of the Berne Union since April 1994 and the founder member of the Aman Union since 2009. The Bank also represents Turkey at the Group on Export Credits and Credit Guarantees and the Participants Group (in which Turkey has an observer status) of the OECD. Türk Eximbank makes efforts to improve its international relations with export credit agencies (ECAs) and always seeks all available alternative opportunities for co-operation to provide financing for projects undertaken in cooperation with Turkish and foreign partners in third countries.