Can Financing Supports Open the Way for Exports?
In the ongoing journey to strengthen Türkiye’s economy, export growth plays a pivotal role. Increasing exports requires easier access to financing, and several government institutions are actively working to provide Turkish exporters with significant financial advantages. The Ministry of Trade, Turkish Eximbank, the Central Bank of Türkiye, and Export Development Inc. (IGE) have joined forces to develop comprehensive financing solutions aimed at empowering exporters, enhancing production, and supporting green transformation in trade.
Export Pre-Financing Model
One of the primary financing supports introduced is the export pre-financing model. Developed in collaboration with Turkish Eximbank and IGE, this model offers exporters the chance to access low-cost financing opportunities. This model not only simplifies financing procedures but also prioritizes companies aiming to expand internationally. The model enables exporters to plan long-term financial strategies with access to daily financial resources and flexibility to cater to the diverse needs of companies.
Central Bank of Türkiye: Increasing Rediscount Credit Limits
The Central Bank of Türkiye (CBT) has significantly increased rediscount credit limits, an essential source of funding for exporters. Initially set at 300 million lira, the daily rediscount credit limit has been raised tenfold, reaching 3 billion lira in September 2023, and was further increased to 4 billion lira in October. This initiative provides companies with greater financial stability, especially those investing in high-value-added production and advanced technologies. The rediscount credits are now strategically utilized, and companies with a higher export score, which is determined by a data-based scoring model, are prioritized for these credits.
Financing Supports for Green Transformation
To meet global sustainability standards, the Ministry of Trade offers additional financing for exporters undertaking green transformation projects. These include initiatives focused on reducing carbon emissions and supporting eco-friendly production practices. Turkish Eximbank has obtained 3.7 billion dollars from international markets to provide financing for such projects, emphasizing Türkiye’s commitment to green production. This support encourages Turkish exporters to integrate sustainable practices, which are increasingly critical in today’s global trade.
Diverse Financial Support Channels
The Ministry of Trade’s wide array of financial support options includes funding for entering new markets, trademark registration abroad, market research, and participation in international fairs. These funds are made accessible to companies annually, helping them strengthen their global presence. The provided financing limits ensure that Turkish companies have the resources they need to compete in international markets, making it easier for them to focus on quality and innovation.
A Roadmap for 2030
Minister of Trade Ömer Bolat highlighted that the ultimate goal is to increase Türkiye’s daily export volume to 1.5 billion dollars by 2030. This vision aligns with the goal of a sustainable economic future, where Turkish products gain more visibility and competitiveness globally. By focusing on long-term strategies, such as the rediscount credit system and export scoring, Türkiye aims to facilitate steady growth in export figures and offer a supportive environment for all exporters, regardless of company size or sector.
In conclusion, the financial support models established by Türkiye’s economic institutions represent a comprehensive approach to fostering export growth. These financing initiatives not only help Turkish companies manage the high costs of international expansion but also enable them to adapt to global standards, such as green transformation. With a commitment to financial accessibility and strategic planning, Türkiye’s export landscape is positioned to expand, potentially unlocking new opportunities for various sectors, including textiles, technology, and manufacturing.
