Forward

In order to benefit from the Forward Transaction;

It is required that the Exporter’s firm information is held within the bank, a “General Loan Contract” is signed between the Exporter and the Bank and that the necessary collateral have been established within the Bank,

A “Derivative Products Framework Contract” and the “General Risk Notification Form” and the “Over-the-Counter Derivative Transactions Risk Notification Form”, which are annexes to this contract must be signed between the Exporter and the Bank and the Compliance Test must be filled.

The Exporters which currently have their firm information within our Bank;

Must sign the “General Loan Contract”, and following the derivative transaction limit allocation; along with the “Derivative Products Framework Contract” and the “General Risk Notification Form” and the “Over-the-Counter Derivative Transactions Risk Notification Form”, which are annexes to this contract, signed in 2 copies, authorized signatory lists with notary certification belonging to the individuals who are authorized to represent and bind the company and that have their signatures on the contract must be delivered to the Treasury Operation Directorate by hand and/or via mail-courier.

Since the risk of not fulfilling the exporter’s obligation in Forward Transactions is not guaranteed, there is loan risk for the forward contracts. The Bank requests initial collateral from the Exporter for this risk.

In determining the TL equivalent of the collateral amounts that will be established, Türk Eximbank’s currency buying rates will be used. For the related transactions, within the derivative transaction limit, separate collateral will be established for each transaction. Each transaction’s maturity is limited to 10 days prior to the maturity of the collateral provided. The initial and maintenance collateral level is determined by the Head Office on transaction basis.

The amount that must be provided by the Exporter as collateral for the Bank to make a forward transaction is the initial collateral. Maintanence collateral is the lowest level at which the initial margin can be decreased as a result of the exchange rate fluctuations in the market during the period of the exchange rate forward process.

• Bank Definite Guarantee Letters,
• Cash Pledge
• Securities issued by countries rated as Country Risk Rating Aa1 and higher by Moody's,
• T.R. Securities issued by the Ministry of Treasury and Finance in the country and abroad,
• Securities issued by Türkiye Export Credit Bank A.Ş.
• Securities issued by T.R. Ziraat Bankası A.Ş, Akbank T.A.Ş, T. Garanti Bankası A.Ş, T. İş Bankası A.Ş, T. Sınai Kalkınma Bankası A.Ş. and Yapı ve Kredi Bankası A.Ş.,
• or other collateral types that the Bank deems appropriate are acceptable.

In case the total collateral held in the account of the exporter falls below the maintenance collateral, the exporter is required by the Bank to complete the amount of the collateral at the initial collateral level. This request is named as “Margin Call”.

• The Exporter whom a derivative limit is allocated and collateral is established sends the “Transaction Form” that includes the related conditions and signed by the individual(s) authorized to represent the firm.
• Upon execution of the transaction, the necessary initial collateral amount is blocked and reduced from the collateral amount provided by the Exporter.
• Following the blockage of the collateral amounts, the Exporter does not have the right to renege on the transaction or the right to change the transaction. The Bank reserves the right to reduce the transaction amount.
• The bank confirms the transaction result with the forward transaction receipt which will be sent to the Exporter on transaction day.
• The exporter sends the Forward Transaction Receipt to the Bank by writing “Notified and Accepted” to the Forward Transaction Receipt signed by the individual(s) authorized to represent the firm.
• After the bank has sent the original forward transaction receipt to the address of the Exporter within 5 (five) business days at the latest from the transaction date, The Exporter delivers the wet-signed original of the forward transaction receipt by mail or courier within 5 (five) business days to the bank.

• In case the exporter reneges on the forward transaction before the transaction date for any reason, the transaction is unilaterally assessed by the Bank according to the current market conditions, and the amount of penalty determined by the Bank on the basis of market conditions is collected from the relevant collateral of the Exporter.
• As a result of daily valuation, if there is profit in terms of the exporter, there is no change in the collateral amount.
• As a result of daily valuation, if there is loss in terms of the exporter, and the amount of the loss incurred does not fall below the level of maintenance collateral determined by the Head Office, a margin call will not be made.
• As a result of daily valuation, if there is loss in terms of the exporter, and the amount of the loss incurred falls below the level of maintenance collateral determined by the Head Office, the collateral level will be increased to the initial collateral amount.
• If the exporter does not comply with the margin call within 2 (two) business days, the default principles will go into effect and the exporters’ collateral will be compensated.

• Foreign exchange rates to be used in cash settlement are determined by the Bank at 12:00 London time on the maturity of the transaction and the Bank’s determined rates are announced on the internet site or directly to the customer.
• If the settlement method is set as cash settlement the amount that will be paid by the Exporter or the Bank shall be Cash Settlement amount and it is calculated by multiplying the difference between the usage price specified in the forward transaction receipt and the rate announced by the bank on the maturity date with the forward amount indicated in the forward transaction receipt. However, if available, net payment is made by making a tax cut from the Cash Settlement amount.
• Calculated Cash Settlement amount is paid to an account specified by the Exporter or the Bank until the EFT system is closed at the maturity date in TL and the forward transaction ends.
• If the settlement type is chosen as physical settlement, the amount which will be paid to the Exporter is the amount written on the forward transaction receipt. The Exporter pays the amount until the stated time and following that the Bank pays the amount to the Exporters account.
• If the obligation is not fulfilled, the collateral is not released. If the Exporter does not fulfil the obligation untill the stated time, the default principles will go into effect and the exporter’s collateral will be compensated.