Buyer's Credits Through Foreign Banks

Throughout credit lines granted to the reputable foreign banks after a thorough analysis, we are financing foreign buyers willing to import goods and/or services from Türkiye.

Application and evaluation procedure

We expect the foreign buyer to apply directly to the limit allocated foreign bank which would convey the selected loan applications to our Bank.

All applications received by us are evaluated within the current limit of foreign banks, in line with the OECD Arrangement on Officially Supported Export Credits and our Bank’s appraisal criteria.

Scope

We are financing Turkish goods and/or services exported from Türkiye (those “Origin Country Code” under the Customs Declaration Form of the Republic of Türkiye is 052).

For loans whose maturity shorter than 24 months, Turk Eximbank’s financing could be up to 100% of the export contract value of goods exported from Türkiye. Yet, in accordance with the OECD Arrangement on Officially Supported Export Credits, for loans whose maturity equal to or more than 24 months, Turk Eximbank’s financing could be up to 85% of the export contract value of goods exported from Türkiye. The remaining 15% of export contract value, in this case, shall be covered by the borrower bank or foreign buyer itself.

What are the benefits?

• We are providing alternative financial resources to foreign buyers throughout the reputable foreign banks.
• We enable our exporters to offer both products packages and financing packages to their foreign buyers.

What are the conditions?

• First of all, there shall be a reputable bank in the buyer’s country, to which a credit limit has already been allocated by us or who is willing to participate in the Program. And this bank should be also willing to borrow on behalf of foreign buyer.
• Goods subject to the financing shall be exported from Türkiye (certified with an “Origin Country Code” of 052 under the Customs Declaration Form of the Republic of Türkiye).
• We are updating the credit limits of the participated foreign banks by taking into account the changes in their balance sheets as well as every current data affecting the economic and political conditions of their country. In this regard, unutilized credit limit of the borrower bank shall be sufficient and up to date as of the date of application.

What are the costs?

In general, the costs arising from credits allocated throughout the Program, in the form of buyer’s credits, are covered by the borrower Bank. Main cost elements:

• Interest (determined on transaction basis, by taking into account the cost of funding of our Bank.)
• Risk Premium (flat, collected in line with the OECD Arrangement on Officially Supported Export Credits.)
• Commission (Management Fee, Commitment Fee).