Work is ongoing to harmonize Turk Eximbank programs with WTO, OECD and EU guidelines, and these rules are taken into consideration in the programs implemented.
In the programs it implements, Turk Eximbank must comply with the norms of the World Trade Organization (WTO), the OECD and the EU, as well as with other international regulations in connection with Turkey’s obligations in relation to its membership of the WTO, the OECD ECG and OECD Participants Group, and in relation to the agreement of the Customs Union and the EU accession process. Accordingly, work is ongoing to harmonize Turk Eximbank programs with WTO, OECD and EU guidelines, and these rules are taken into consideration in the programs implemented.
In 2020, the Bank continued to attend the meetings of OECD Export Credits Group (ECG) which aims to evaluate policies, identify problems and provide solutions by multilateral discussions on export credits, and closely monitored the developments. In all of its practices, the Bank adheres to the three recommendations that emerged from the studies at these meetings, i.e. OECD Recommendation on Bribery and Officially Supported Export Credits, Recommendation on Environment and Social Due Diligence and Recommendation on Sustainable Lending Practices and Officially Supported Exports Credits.
Upon our country’s acquisition of Participant Status in the PG in 2018 where it was an “Invited Participant” (observer) since 2006, it has become part of the decision mechanism for revisions to the OECD Arrangement that sets the rules governing officially supported export credits with maturities over two years provided by the member countries, and all rules associated with export credits became binding upon Turk Eximbank as well. The updating of the Arrangement was addressed as a priority topic in the PG Meetings held in 2020, and the Bank actively participated in related negotiations.
Harmonization with the EU Acquis
The Bank’s activities are covered under the “Competition Policy” and “External Relations” chapters of the EU Acquis, with which harmonization is to be achieved.
Pursuant to an EU rule, which states that marketable risks associated with short-term export credit insurance must be incurred by entities that do not receive governmental assistance, all of the Bank’s short-term insurance activities will need to be organized under a separate entity within the frame of harmonization efforts with the EU Acquis. With respect to restructuring activities that will come up within the frame of the said EU Directive, it is anticipated that a joint project with all stakeholders will take place in accordance with the instructions of the Ministry of Treasury and Finance.With respect to the “External Relations” chapter, medium and long term financial supports to be provided by the Bank have been aligned to a large extent with the EU Acquis, which includes OECD Regulation on Officially Supported Export Credits, following the participant status acquired by Turkey in relation to the said Regulation in 2018.