Turkey to create development fund for exporters
Turkey is working on establishing a development fund that will have a structure similar to the country’s credit guarantee fund, the head of the country’s exporters’ assembly said on Monday.
The Export Development Fund (IGF) will only be export oriented and act as a guarantor of loans to exporters, Ismail GÃ¼lle, chairman of the Turkish Exporters Assembly (TIM), said of the fund that President Recep Tayyip ErdoÄan recently announced. .
The current Treasury-backed Credit Guarantee Fund (KGF) is designed to stimulate the economy by guaranteeing loans to small and medium-sized businesses.
GÃ¼lle said the IGF would solve the problem of loan guarantees and therefore ensure easy access to loans for exporters.
With the collateral pool that will be formed, he said, exporters will have the option to use the resources of the Central Bank of the Republic of Turkey (CBRT) through Eximbank under the Treasury guarantee.
“The resource here will be fully supported by the reserve funds and the resources of our exporters associations, the IGF will be established from a pool that will be formed with the participation of all, and the fund will be a guarantor. for the exporter, âGÃ¼lle said.
âThis model will eliminate the problem of a letter of guarantee. Currently, it is not possible to use Eximbank’s resources without a letter of guarantee, âhe noted. âIt tied the hands of the exporters.
With the system, the head of TIM said they are looking to create resources of 300 billion TL ($ 33.89 million) to 400 billion TL in parallel with the export funds and loans that the companies would receive via the IGF without guarantee.
Turkish exporters managed to exceed the $ 20 billion (TL 177 billion) threshold for the first time on a monthly basis in September, official data showed on Friday.
Exports jumped 30% to $ 20.8 billion last month. Imports rose 12% to $ 23.4 billion.
The country also met its 12-month rolling exports target for this year in the first nine months of the year, reaching $ 212.2 billion.
âBecause our monthly exports now stand at $ 20 billion, additional financing is needed. Due to the pandemic, the costs of raw materials, logistics and energy around the world have increased dramatically. We have a fund that will solve all of these burdens, âsaid GÃ¼lle.
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