Historical Background
Exports gained great importance in Turkey after the introduction of outward-oriented policies in the 1980s. In the process, the mission of supporting exports was undertaken by Turk Eximbank that was established in 1987.
Turk Eximbank was chartered by the Board of Ministers through Decision No. 87/11914, following the order of Law No. 3332 dated 31 March 1987 by maintaining the juridical and legal personality of the State Investment Bank. In effect, according to the charter, Turk Eximbank took over the State Investment Bank’s credit, funding, support, insurance, guarantees of goods and services, exports and imports, overseas contracting services, manufacturing and sales of domestic investment goods, and foreign investments, but at the same time it was transformed into a joint stock company subject to the provisions of the Private Law of the State Investment Bank. Turk Eximbank was established in 1987 as the official export credit agency according to international classifications, and started to implement its programs at the beginning of 1988.
The objectives of the Bank, which is the official export credit agency in Turkey, are spelled out as follows:
- Increasing the volume of exports;
- Diversification of export goods and services;
- Developing new export markets;
- Increasing the exporters’ share of international trade and providing necessary support for their initiatives;
- Gaining competitiveness and bringing assurance to exporters, overseas contractors and investors on the international markets; and
- Promoting and supporting the production and sale of investment goods for export through overseas investments.
As a means of aiding export development, Turk Eximbank offers specialized financial services to exporters, export-oriented manufacturers, companies engaged in FC-earning services and overseas investors and contractors through short, medium- and long-term cash credit, insurance and guarantee programs.
Turk Eximbank’s role in funding exports has steadily increased over the years. According to the country’s liabilities against international institutions regulating the world trade, Turkey had to terminate the direct export incentives, and because of the commitment to comply with the commercial and competition policies of EU and the Customs Union. As a result of these developments, the funding of exports through credit, guarantee and insurance programs has become the most significant stimulant element in terms of increasing the competitiveness of Turkish exports on international markets.
The “Articles of Association and Duties of the Export Credit Bank of Turkey”, which has since been repealed, was prepared to reflect the changes in legislation required regarding the activities of the Bank in line with the Principles Appendix to Decision No. 87/11914 regulating the establishment of the Bank, Turkish Commercial Code No. 6102, the changes in the banking legislation, and global financial and economic developments that have occurred since the Bank’s establishment, and was published in the Official Gazette dated 23 February 2013 as an attachment to Decision 2013/4286 of the Board of Ministers. Operating principles of the Bank are currently being determined in accordance with the principles set forth in the appendix of Board of Ministers decision numbered 2013/4286.
In accordance with Article 4/C of the Chartering Law, which was amended by Act No. 3659 and Article 10 of the Law No. 4749, the Ministry of Treasury and Finance covers any losses incurred by Turk Eximbank in its credit, insurance and guarantee transactions arising from political risks.
In accordance with the second paragraph of Article 2 of the Law numbered 3332, the Ministry which the Bank is related to is determined by the decision of the Presidency. In this context, Turk Eximbank has been linked with the Ministry of Commerce based on the Presidency’s Memorandum numbered 2018/1 which was in effect by its issuance at the Official Gazette numbered 30479 dated 15 July 2018.
