Turk Eximbank General Manager Adnan Yıldırım stated that Turk Eximbank with a significant role for finance of export is with the Turkish companies that wish to work worldwide with credit and insurance support.
Turk Eximbank established in 1987 is prominent compared to the similar firms in the world, as an important export financial provider, constantly funds Turkish Exporters with Credit Insurance Fund. Turk Eximbank General Manager Adnan Yıldırım, made a statement for News from Turkey newspaper; as of end of 2016 7695 companies that are 55% SME were supported.
Turkish exporters supply 6 continents of the world. Can you explain about Turk Eximbank operations and practices?
Eximbank was established in 1987 as a result of; growth based on export strategy in our country. Although it was established almost 50 years after similar firms like Coface, Euler-Hermes, Atradius established in developed countries; with its performance Eximbank ranks at the front.
Overseas transactions are more risky when compared to the domestic transactions. Turk Eximbank mainly aims to decrease the risk and give financial support with affordable cost. Turk Eximbank supports the exporters in the most needed times with affordable costs which leads to reliability and sustainable increase of export.
Our bank serves with credit, guaranty and insurance to exporters, contractors and investors abroad, firms that gain foreign currency, international transporters and tourism professionals. Turk Eximbank serving with these 3 operations together is differentiated from similar firms; forms a complete structure for the exporters.
We, as Turk Eximbank, see export as a process and support with different products at each level. We serve 28 different financial products to our goods and service exporters.
Considering credits, we provide financial support to companies during production process, before and after transportation period. With Dept Insurance we support exporters to enter new markets and improve their competitiveness with no doubt for commercial and political risks. Plus we support by future export dept allowance, to promote future sale activities and increase export and entrance to new markets. On the other hand when the buyer has difficulties to pay not the exporter to sell, we support by credits to the buyer to allow demand for the products. In the scope of International Credits Program, we provide credits to buyers from Turkish companies for overseas projects and export.
What are your operations for exporters and SMEs that want to export?
As is known, precautions are considered recently for SMEs to reach financial support. Most important of all, by Secretarial of Treasury, Credit Guaranty Fund treasury supported security system is formed. CGF will give 250 billion TL treasury support and all exporters including SMEs will be supported by 100%.
CGF and our bank signed a new protocol and CGF Limit will be 3 million and treasury limit will be 7,5 million for the SMEs. Exporter firms other than SME will be supported by 20 million treasury supported security system.
SME share increases every day in our bank. 63% of the firms that use credit are SME and 49% of the firms that use insurance carry the properties as SME. We as Eximbank provide some convenience; For example;
SME Preparation for Export Credit prepared only for SMEs with a 0,50% less interest rate.
Intermediary banks have to give 30% of Export Credit before transportation to SMEs and the interest rate is 0,50% less.
SME precision at our bank together with CGF based assurance system, it is very convenient for the SMEs to reach the low cost credits. I would like to mention that as a result of our close relations with exporters, when in need for SME the necessary step will be taken. New assurance system with CGF leads us to reach much more exporters not only SMEs.
Our support level has increased recently. Our main resource is to increase exporter portfolio. As end of 2016 we reached 7695 companies with new firms and SMEs. 55% of the firms using the support are SMEs.
However we do not see this sufficient and try to reach upper levels. Considering 65.000 exporters plus companies that work on foreign currency we have almost 100.000 potential customers as our target.
To reach our target, we visited and carried meetings at more than 20 cities starting from new years. During the activities by; Turkey Exporters Association, Exporters Union, and Organized Industrial Zone, we got together with exporters, industries and SMEs to explain them our solutions and to listen to their problems. We will continue our close relations with the exporters.
We have head office in İstanbul, region headquarters in Ankara and İzmir, branches in Gaziantep and Denizli. We had a branch in İzmir, but as a result of increase of demand by Agean Region exporters we transformed our branch to a regional headquarter in 2015. We are expanding our service given by regional headquarters. Starting from January, as an addition to our credit programs rediscount credit after transportation has been in use by our regional headquarter. All the Agean companies that have been using this credit from Ankara now are using it in İzmir where they are. Starting from May we will start serving dept insurance from İzmir. So, Agean companies will conveniently reach credit and dept insurance programs.
In addition, we are transforming our liaison offices in 9 cities to branches for direct response. In 2016 Gaziantep, in 2017 Denizli offices became branches. In the near future Bursa and Adana will be included in the branches followed by Kayseri, Konya, Antalya.
In the next period, we are planning to start new liaison offices in large organized industrial zones and new areas where we are not present and there is potential for export.
Our first introduction is with Agean Region Chamber of Industry. EBSO by employment of people who have knowledge for Eximbank operations enables easy access to the operations and aims to show the advantages of export. As a result companies in EBSO will be able to use our credits and dept insurance which will bring convenient, secure and stable conditions for business. It will be very easy to get in touch with our bank.
On the other hand we are trying to expand our branch and liaisons overseas. In trade centers in TIM, Turk Eximbank representatives will work to be in closer contact with the exporters. In the near future we will send our representative to Tehran to the new trade center.
As I mentioned above we want to reach our 100.000 customer potential so we have an important way to go.
Being one of the experienced people in economy bureaucracy in Turkey what are the significant factors for Turkish export products that take them a step forward compared to their competitors worldwide?
Turkey being an important transit point between east and west carries significant traits based on its geographical position. Export products carry these traits. Turkish export products are upgrade compared to Far East products and is competitive for western products based on quality. Turkish export products are close to Far East products best on price so a buyer that prefers Turkish products buys quality for a better price.
On the other hand being close to Middle East and Europe is very advantageous for Turkish exporters. Balkans and Middle East with similar cultures end up in increase of demand for Turkish products.
What is your message for ‘ Trust Turkey and Turkish Products’; a call to the world from Turkey that we also share in our newspaper?
Where we stay in world economy, profit is the main issue. The solution is either to produce with lower cost or increase quality. It is possible to buy or produce the same product with a more competitive price or the same price with a better quality. From this point of view anyone who invests or buys from Turkey will gain. Turkey with young population is a dynamic domestic market and is very convenient as the location.
In our country experienced economy bureaucracy and dynamic private sector is an important accumulation. Bureaucracy and private sector working together for long years is a very strong side for Turkey. I am aware that institutional culture forms a strong image for our export products abroad. We see and hear in our overseas trips that buyers tell the quality of our products before we do. When fair and reliable business comes together with good quality product; long term strong relations are established.
When our exporters enter a market it is easy for them to keep their market share because of the reasons I have mentioned. Establishment of the first relation is the important part. After the entrance the buyers understand the importance and advantages of doing business with Turkey and the relations continue.
Turk Eximbank has a critical role in first interactions. By the dept insurance we decrease commercial and political risks during this period. Beyond this our buyers credit for contractors abroad helps for the first transactions. We are all aware of this support given to contractors abroad in 1990s and the strong relations that still continue with Turkic Republics. In the near future we will give priority to support contractors for projects in Africa and lead exporters to head for these areas.