Short-Term Export Credits

Pre-Shipment Export Credits

Pre-Shipment Turkish Lira Export Credits (PSEC-TL)

The Pre-Shipment Turkish Lira Export Credit (PSEC-TL) program allocates credits to Sectoral Foreign Trade Companies, manufacturers, exporters and manufacturer-exporters of all sectors from the early stages of production. PSEC in Turkish Liras are generally extended for a maximum of 360 days and cover up to 100% of the exporter's FOB export commitments. Türk Eximbank determines interest rates on the basis of money market rates, loan repayment periods and cost of funding.

Credits under the Small- and Medium-Scale Enterprises (SMEs) Export Credit facility, a sub-program of the PSEC-TL program, are extended only to small- and medium-sized manufacturers and manufacturer-exporters of up to 200 employees whose fixed assets capital are less than USD 2 million. 30% of the credit limit allocated to each commercial bank is reserved for on-lending to SMEs.

Another PSEC-TL sub-program is the Priority Development Areas Export Credit Program, which offers more favourable lending terms to companies located in the 51 provinces considered as Turkey's priority development areas, mainly the eastern and south-eastern provinces. The program aims to support exporters in these regions and ultimately eliminate the social and economic gaps that exist between these regions and Turkey's more developed regions. Intermediary banks are required to extend at least 5% and at most 25% of their credit limit to companies in these regions. The maximum repayment period is 360 days.

Last saved: July 05, 2005
 
Ç