Overview of Türk Eximbank’s Activities in 2021

Being the sole official export credit agency in Türkiye, Türk Eximbank helps Turkish companies engaged in goods and services exports, overseas contracting, and investment goods manufacturing and sales increase their share in international trade by extending them credit and credit insurance support.

Being a specialized bank in export financing, Türk Eximbank has embraced it as a primary goal to achieve its predefined targets associated with export finance rather than maximizing profit. However, care is taken to pursue policies that will safeguard a healthy financial structure in keeping with the responsibility of being a bank.

In 2021, Türk Eximbank carried on with the “Türk Eximbank Strategic Transformation Program” initiated in 2020 with the aim of more effectively supporting our country’s export strategies and flourish the foreign trade ecosystem in line with the worldwide best practices in collaboration with its stakeholders. Under this program, Türk Eximbank is transforming into a structure that proactively supports the exporters that generate high added-value for the national economy and pursue operations in line with our country’s export strategies. It also identifies the needs and obstacles of exporters and companies with export potential, expands its product and service array targeted at their needs, and improves exporters’ experience of making use of Türk Eximbank support schemes. The Bank’s Strategic Priorities within the scope of the Strategic Transformation Program have been defined as follows: SME Priority, Export Performance-Based Support System, Collateral Diversity, Sectoral Focus, Focused Country Strategy, Digitalization, Broad Product and Service Array, Diversification of Funding Sources, Field of Activity and Structuring, Competence Transformation, Institutional Relations and Communications.

strategic transformation program In 2021, Türk Eximbank carried on with the “Türk Eximbank Strategic Transformation Program” initiated in 2020 with the aim of more effectively supporting our country’s export strategies and flourish the foreign trade ecosystem in line with the worldwide best practices.

In 2021, under the Strategic Priorities and Transformation Program:

“Restructuring Bill”, which will allow the Bank to carry through its strategic transformation program faster and more effectively, entered into force on 6 November 2021.
A new era started in exports with the incorporation of İhracatı Geliştirme A.Ş. (İGE), co-owned by the Turkish Exporters Assembly (TİM) and Türk Eximbank and coordinated by the Ministry of Trade with the aim of facilitating our exporters’ access to finance and helping them resolve their credit guarantee problems.
Türk Eximbank launched its new website and mobile branch in order to achieve a structure capable of branch-independent service rendering to exporters while at the same time simplifying and adding speed to its processes.

Domestic Loans

Türk Eximbank supports exporters, export-oriented manufacturers, companies exporting FC-earning services, and international contractors/investors with short- and medium-long-term cash credit programs. The financing support that companies will need during the production process is extended both for pre-shipment and post-shipment periods through cash loans.

In 2021, short term loans extended by Türk Eximbank including maturity extensions totaled USD 17.9 billion, and medium-long term domestic loans totaled USD 4.6 billion.

**USD 22.5 billion in total** In 2021, short term loans extended by Türk Eximbank including maturity extensions totaled USD 17.9 billion, and medium-long term domestic loans totaled USD 4.6 billion.

During 2021, 14,092 firms, which together accounted for a significant share of Türkiye’s total exports, benefited from Türk Eximbank’s loan programs.

Priority was given to SMEs in lending, and TL credits were predominantly used for SME financing.

As a result of additional funds provided to the SMEs, prioritization of their credit requests, and term extension support offered, TL 14.2 billion in local currency and USD 2 billion in foreign currency were allocated in the form of credit support, and total SME credits amounted to USD 3.6 billion. Accordingly, 16% of the Bank’s credit support were allocated to SMEs

In the distribution of loans by country groups, EU countries led with 50% share. Logistics and transportation sector took the lead with 15.8% share in the sectoral distribution of loans.

Recent Adjustments and Changes in Domestic Credit Programs

Medium- and long-term maturity options were introduced for FC Pre-Shipment Export Credits, maximum maturity was increased to 5 years, and the application limit that was set as USD 1 million per transaction was lifted.
Maximum maturity in TL Pre-Shipment Export Credits was increased to 540 days, and the application limit per transaction was raised from TL 1 million to TL 5 million.
Participation Finance Working Capital Loan Program was introduced for financing working capital needs of borrowing companies within the frame of interest-free banking principles. Under the program, goods and services exporters are disbursed working capital loans with the murabaha method, i.e., the cost-plus method which is one of the interest-free funding methods.
In Pre-Shipment Export Credits disbursed via Participation Banks, the maximum terms were set as 540 days for TL loans and 5 years for FC loans.
The number of transaction items that can be financed under the Trademark Credit Program was increased.
Under the Credit Program for Leasing Companies;

The Program limit was increased from USD 2.5 million to USD 5 million,
Arrangements were made to enable intermediation of loans by participation banks,
Short-term options were introduced in addition to medium long-term options,
Also, TL borrowing was introduced as an option in addition to FC credits.

Agreement was reached with the Asian Infrastructure Investment Bank (AIIB) regarding credit implementation principles for the USD 250 million-fund secured under the guarantee of the Ministry of Treasury and Finance, and the facility has been on-lent in its entirety to our exporters for financing working capital need.
Total cash limit allocated to our Bank by the CBRT within the scope of the Rediscount Credit Program was increased from USD 17 billion to USD 20 billion. Furthermore, TL borrowing was introduced as an option in addition to FC credits.
Export products, which are processed with products imported within the frame of Inward Processing Regime but which cannot acquire Türkiye origin due to the problems in proof of origin, can now be financed under any credit program of our Bank and be used for credit closure commitments.
With a digital-focused approach, our exporters were given the chance to easily perform numerous transactions via the internet branch accessible at https://esube.eximbank.gov.tr and Türk Eximbank mobile branch.
Development was made to receive credit demands and application documents through the Türk Eximbank Internet Branch and Mobile Application.
Web Application screens were launched, which will allow receipt of the application and analysis documents for companies that will make their first-ever credit application to our Bank, thus facilitating firms’ access to our Bank’s services.
The “Borrowing Fund” product has been introduced, whereby accounts are opened for exporters before Eximbank, which they use for their cash flows including the amounts associated with their exports, and perform money transfers.
Apart from the Advanced, Productive, Indigenous Industry (in Turkish: İVME) Financing Package made available to exporters of high technology products, TL loans extended from the Bank’s resources were allocated exclusively to firms that qualify as SMEs, and to Agricultural Sales Cooperatives and Associations. Hence, our approach that accords privilege to our exporter SME firms in terms of accessing our Bank’s funds continued in line with our strategic priorities.
Under the Overseas Letter of Guarantee Program, competitive prices were obtained in the pricing of letters of guarantee to be issued by non-resident banks with the counter-guarantee of Türk Eximbank particularly as a result of the efforts spent for the shipbuilding industry. As a step that will increase additional undertakings of exporter firms engaged in the shipbuilding industry, the exportation of a fishing vessel to Norway and an all-electric towboat to Canada by two exporters operating in the shipbuilding industry was supported with the letters of guarantee issued by our Bank.
Under the amendment made to the Law numbered 3332, Türk Eximbank was exempted from certain financial obligations that led to contraction of the funds allocated for supporting exports, which resulted in a significant convenience for exporters.

Actualizations on the basis of Domestic Credit Programs (USD billion)

Direct Disbursements	20.7
Bank-Sourced Loans	4.4
CBRT-Sourced Loans	16.3
Intermediary Bank/Institution Loans	1.8
Loans Extended via Intermediary Banks/Financial Institutions	1.8
TOTAL	22.5

* A minimum portion of 30% of the credit lines allocated to intermediary banks must be disbursed to SMEs; accordingly, PSECs worth USD 1.5 billion were allocated to SMEs during 2021 (83%).

International Loans Programs

International Loans Programs, under which projects undertaken abroad by Turkish contractors and the buyers (public and private) of Turkish goods in foreign countries, are intended to increase Türkiye’s exports, diversify the goods and services exported, acquire new markets for export goods, increase the share exporters get from international trade, and provide competitive strength and assurance to Turkish firms in international markets. All supports provided under International Loans are in the nature of “buyer’s credits” and debtors are directly governments, the buyer country’s state-guaranteed public institutions or overseas/domestic banks within the allocated limits.

In 2021, loans made available for project and trade finance transactions in foreign countries under the International Loans Programs totaled USD 36.4 million.

**USD 36.4 million** In 2021, loans made available for project and trade finance transactions in foreign countries under the International Loans Programs totaled USD 36.4 million.

In an effort to add momentum to International Loans Programs and in turn, to increase exports of Turkish goods and services, revolving loan agreements are made with acceptable banks in foreign countries for overcoming the hardships borrowers experience in getting a state guarantee and for extending support to the private sector’s transactions, as well.

In this context, in line with the target of expanding the network of international banks and covered countries, negotiations are ongoing for potential project and trade finance deals within the frame of the credit lines allocated to three multinational banks (the African Export-Import Bank, ECOWAS Bank for Investment and Development (EBID), and the Eastern and Southern African Trade and Development Bank), as well as commercial banks operating in various countries. The cooperation developed with the multinational banks operating in Africa will allow our Bank to cover a substantial portion of the countries in that continent.

Under the existing overseas bank analysis and credit line allocation methodology, a first-ever credit line was allocated to a bank in the amount of USD 10 million, in addition to the credit line of USD 478 million of 10 banks which were already allocated lines, three of which are multinational banks. Hence, the number of banks allocated a credit line was 11 and the total credit line was USD 488 million in 2021, and the transaction coverage expanded over 55 countries via the member countries of multinational banks.

During 2021, 34 Letters of Intent were issued for financing projects and goods exports planned to be undertaken by Turkish companies in a total of 18 countries in Africa, Asia and Europe. If the projects/transactions covered by the letters of intent provided to the firms are actually carried out, exports of goods and services ex-Türkiye is anticipated to amount to USD 4.6 billion.

In addition, our Bank participated in the meetings of the Environment Practitioners Group, Country Risk Experts, Technical Experts Group and Shipbuilding Working Group organized under the OECD, and made contributions for the formation of our country’s position and opinions.

Actualizations on the Basis of Projects/Deals under International Credit Programs

Having taken the whole world in a tight grip as of the first quarter of 2020 and with its implications that endured throughout 2021, the COVID-19 pandemic restrained buyer credit demands for overseas contracting works due to the worldwide stagnation and the restrictions implemented. Notwithstanding, our support to trade finance was carried on with the Government-Guaranteed Buyer’s Credits, Buyer’s Credits Through Domestic Banks and Buyer’s Credits Through Foreign Banks programs.

Within the scope of State-Guaranteed Buyer’s Credits, credit in the amount of USD 17.5 million was allocated in 2021 for various goods exports ex-Türkiye under the credit agreement for the amount of USD 200 million signed in 2018 between the Tunisian Ministry of Development, Investment and International Cooperation and our Bank, and the total amount of credits allocated so far reached USD 150 million.

During 2021, the amount of financing provided to buyers abroad of various goods and equipment exported from our country amounted to USD 20.4 million under State-Guaranteed Buyer’s Credits, USD 14.6 million under Buyer’s Credits Through Foreign Banks and USD 1.4 million under Buyer’s Credits Through Domestic Banks.

Within the frame of the Debt Service Suspension Initiative (“the Initiative”) launched by the G20 Finance Ministers and Central Bank Governors and the Paris Club in an effort to mitigate the effects of the Covid-19 pandemic on the poorest countries and to free these countries’ resources to be allocated for fighting the pandemic, it was agreed to restructure the debt service of the least developed countries for their debts that became due between 01 May 2020 and 31 December 2021, and their overdue debts that existed before 01 May 2020, preserving the net current value. Accordingly, from out of the credits extended under state guarantee, EUR 28.1 million within the scope of the Congo credit and USD 4.0 million within the scope of the Djibouti credit will be restructured in coordination with the Ministry of Treasury and Finance. Agreement has been reached with the debtor countries regarding deferred due dates and deferment terms, and related deferment agreements are anticipated to be signed by early 2022.

On the other hand, USD 130 million has been collected from our debtors during 2021 within the scope of international credit programs.

Receivable Insurance

Türk Eximbank boasts being the entity that has initiated export receivables insurance in Türkiye and that has established awareness of the need for export insurance. Initially introduced to cover solely short-term export receivables against commercial and political risks, the export credit insurance system’s scope was broadened in time, and medium/long-term exports of goods were also included within insurance coverage with the Specific Export Credit Insurance Program.

Through its insurance programs, the Bank today provides insurance cover for exports to 238 countries against losses arising from the importer firm and importer’s country. In addition, domestic receivables of exporters are protected against commercial risks also through domestic credit insurance as well as export credit insurance.

Moreover, obtaining a credit from financial institutions is facilitated by putting up credit insurance policies as collateral.

**USD 23.6 billion in total** During 2021, shipments with a total worth of USD 23.5 billion were insured, and reinsurance support was provided for Turkish goods and services worth USD 60 million.

During 2021, shipments with a total worth of USD 23.5 billion were insured under Short-Term Export Credit Insurance, Short-Term Domestic Credit Insurance and Medium-Long Term Export Credit Insurance, and reinsurance support was provided for Turkish goods and services worth USD 60 million.

During 2021:

The Service Supplemented version of the Short-Term Export Credit Insurance Policy was revised in line with the changes in practice and in the operation of the new system upon introduction of the new insurance system in 2020.
The Letter of Credit Confirmation Insurance Policy introduced in 2019 was updated to bring it into alignment with the New Insurance Project implementations and our previously revised insurance policies, and to capture the demands of banks that sought to utilize the said program which were deemed acceptable by our Bank.

Work is being carried out to initiate new implementations for our large-scale insured firms identified according to certain criteria in the first place (Priority Insurance Customers) within the scope of Short-Term Export Credit Insurance and Short-Term Domestic Credit Insurance to enhance service quality, customer satisfaction, and transacting speed.

Since the use of reference interest rates based on different currencies used in various financial products and agreements such as USD LIBOR, EUR LIBOR, GBP LIBOR, JPY LIBOR, CHF LIBOR or TRLIBOR will be discontinued, it was decided to terminate interest payments made based on LIBOR rates, in addition to shipment amounts, in claims payments made within the scope of the Bank’s Short-Term Export Credit Insurance, Short-Term Domestic Credit Insurance and Specific Export Credit Insurance Programs, and the said policies were revised accordingly.

Within the scope of the cooperation established between our Bank and other banks for financing the export receivables insured under the Short-Term Export Credit Insurance Program by banks, the number of banks partnered with reached 20.

Work continued for the creation of scoring & rating models specific to Türk Eximbank addressing domestic firms that are allocated a credit line within the scope of the Bank’s domestic credit programs, and domestic and foreign firms that are allocated a credit line within the scope of insurance programs, and for the creation of credit line decision models for automated credit line allocation in insurance programs.
Studies were completed for the revision of the Pre-Shipment Risk Policy intended to indemnify direct production costs borne by firms in the event that the order cancellation risk exporters are confronted with during the production processes occurs.
Under the reinsurance/guarantee cooperation agreements that are being signed between our Bank and the world’s leading export credit agencies in order to diversify and increase the non-cash supports extended to our contractor companies undertaking works abroad, our Bank started providing reinsurance/guarantee support to the creditor export support agency pro rata the goods and services export from Türkiye.

Short-Term Export Credit Insurance

The Short-Term Export Credit Insurance Program provides cover for all shipments of exporters up to 360 days against commercial and political risks.

Offered since 1989 by Türk Eximbank, Short-Term Export Credit Insurance became a service recognized and extensively used by exporters in time. As a result, 5,451 export firms were making use of the service as of 2021 year-end.

Under the program, exports worth USD 21.1 billion was provided with insurance cover in 2021, and premiums in the amount of USD 64.2 million were collected for the insured shipments.

In the sectoral distribution of insured shipments, construction and construction products industry took the lead with 10% share, followed by textile and raw materials, food, electrical household appliances, metal, ready-to-wear and garment industries with 8% share each.

The regional distribution, however, is topped by European (European Union and non-EU combined) countries with 68% share, whereas Asia ranked second with 13% share and North and Central America ranked third with 9% share.

The number of buyers granted consistent limit under the Short-Term Export Credit Insurance Program is 59,458.

In 2021, Türk Eximbank indemnified USD 26.5 million in losses, which arose from shipments to various countries and the receivables from which could not be collected when due, under the Short-Term Export Credit Insurance Program. In the same period, Türk Eximbank recovered a portion of USD 3.6 million out of the losses indemnified before. The entirety of the recovered amount is linked to receivables indemnified within the frame of commercial risk.

In 2021, the Bank continued to cede 60% of the commercial and political (associated with non-OECD countries) risks underwritten within the scope of the Short-Term Export Credit Insurance Program to overseas reinsurers.

Financing can be obtained against Türk Eximbank insurance policy under the protocols signed with 20 banks. A total credit volume of approximately USD 172.1 million was created to date, with USD 15.6 million of it generated in 2021.

Short-Term Domestic Credit Insurance

Short-Term Domestic Credit Insurance program for exporters and their group companies is another area of insurance that Türk Eximbank is engaged in.

With this program, receivables of exporters and group companies having a Short-Term Export Credit Insurance Policy from credit-sale shipments up to 360 days, which are associated with their domestic operations, are insured against commercial risks within specified limits.

As of year-end 2021, 165 firms’ shipments worth USD 2.4 billion were insured. Premiums in the amount of USD 5.5 million was collected for the shipments insured, while claims paid amounted to USD 403 thousand.

Medium- and Long-Term Export Credit Insurance

Exporters’ receivables arising from shipments born out of a single sales contract with a maximum term that is defined in line with OECD rules are provided coverage with Specific Export Credit Insurance. Under the program, sales through overseas subsidiaries can also be insured besides exports of Türkiye-origin investment goods and services of export companies.

Under the Specific Export Credit Insurance Program, insurance support provided during 2021 totaled USD 3.8 million and total claims paid amounted to USD 3 million in total.

Specific Export Credit Insurance Post-Shipment Policy is accepted as an irrevocable guarantee within the scope of Draft & Letter of Credit Discount Program since 2014, providing exporters with low-cost and convenient financing. Through the program whose scope was expanded in 2015 so as to include cash against goods shipments as well and which was relaunched under the name “Export Receivables Discount Program”, disbursements continued in 2021.

Under supplementary protocols signed with the banks that have a protocol with our Bank concerning financing of shipments insured under the Short-Term Export Credit Insurance Program, export deals carried out under Medium- and Long-Term Export Credit Insurance Programs can also be financed.

In 2021, the Bank continued to share the risks underwritten within the scope of the medium- and long-term insurance transactions with reinsurers.

Other Insurance Programs

Expenses directly incurred by the exporter for production during the pre-shipment period under the sales agreement signed between the exporter and the buyer are insured within certain limits against commercial and/or political risks with the Pre-Shipment Risk Insurance Program, which is aimed at the prevention or mitigation of potential pre-shipment losses of exporters.

Financing and Treasury

In 2021, Türk Eximbank secured funds in the amount of USD 3.3 billion from international markets and an additional USD 2.3 billion within the scope of funding from treasury transactions (repurchase agreements, TRS, money swaps, borrowings) and kept offering low-cost financing facilities with various maturities from its fund stock maintained at USD 9.9 billion level, excluding CBRT funds. The Bank’s total fund stock including TL credits and including the CBRT rediscount facility of USD 12.7 billion was registered in the order of USD 22.6 billion. On the other hand, principal repayment by the Bank amounted to approximately USD 3.2 billion during the reporting period.

**USD 9.9 billion in total** In 2021, Türk Eximbank kept offering low-cost financing facilities with various maturities from its fund stock maintained at USD 9.9 billion level, excluding CBRT funds.

Developments Regarding the Capital

As approved at the Extraordinary General Assembly convened on 12 January 2017, Türk Eximbank switched to the “Registered Capital System” in accordance with the Turkish Commercial Code no. 6102. The decision was registered with the trade registry and promulgated in the Turkish Trade Registry Gazette issue 9252 dated 30 January 2017.

As a result of the Bank’s Ordinary General Assembly convened on 26 March 2021, the Bank’s registered capital ceiling was increased from TL 10 billion to TL 17.5 billion.

Additionally, the Bank’s paid-in capital was raised from TL 9.27 billion to TL 10.8 billion, which was covered by cash capital transfer of TL 100 million from the Treasury and by offsetting profit reserves in the amount of TL 1.43 billion based on the Board of Directors decision passed on 29 December 2021. Hence, the Bank’s robust capital structure has been preserved.

Borrowing Transactions

TL funds derived within the scope of paid-in capital and interest collections were used for funding almost the entirety of TL loans disbursed in 2021, excluding Rediscount Credits.

The details about the Bank’s borrowings in 2021 are presented below:

Türk Eximbank heavily utilized the promissory note rediscount facility of the Central Bank of the Republic of Türkiye (CBRT). As of 31 December 2021, the balance of these resources including TL Rediscount Credits amounted to USD 12.7 billion.
A USD 750 million-Eurobond with a 5-year term was issued in international capital markets.
Within the scope of syndicated loans, the Bank raised EUR 466.9 million and USD 218 million under a 1-year term facility participated by 31 international financial institutions in May, and EUR 418.8 million and USD 161.5 million under a 1-year term facility participated by 22 international banks in November.
Of the EUR 250 million-guarantee limit granted to the Bank in June 2020 by the International Bank for Reconstruction and Development (IBRD), the portion of EUR 190 million was utilized in July 2020. The remaining EUR 60 million guarantee limit was tapped and EUR 120 million was secured with a 10-year term under the counter-guarantee of the Ministry of Treasury and Finance and with the 50% principal amount guarantee of the IBRD, which facility will be used within the scope of the Bank’s sustainability process and 70% of which will be on-lent to the SMEs.
The Bank obtained EUR 25 million with a 2-year term as the second tranche under the agreement signed with the Black Sea Trade and Development Bank.
A USD 250-million fund with a 4.5-year term was secured from the Asian Infrastructure Investment Bank (AIIB) under the guarantee of the Ministry of Treasury and Finance which will be utilized for the Bank’s sustainability process.
The Bank raised a fund for USD 70 million with a 3-year term from China Development Bank.
The amount of loans secured from international banks totaled USD 636.3 million in 2021.

Furthermore, the Bank secured USD 2,343 million in funds secured through treasury transactions (repurchase transactions, TRS, currency swaps, borrowings). As at year-end 2021, the existing fund stock is in the order of USD 626.5 million.

Fund Management Activities

Türk Eximbank kept a close eye on national and global developments and the difficulties caused by the pandemic, and paid maximum attention to liquidity, interest rate and exchange rate risks management, taking into account such issues as high volatility in interest and exchange rates, global macroeconomic conjuncture, and return-cost balance in 2021.

As part of liquidity management, funds generated through currency swap, repo transactions and borrowings from money markets were invested in CBRT, Takasbank Money Market and interbank market, and high interest income was achieved.

The ratio liquidity in total assets managed by the Treasury Department, which was kept within the legal limits set out in the BRSA Regulation Concerning Measurement and Evaluation of Liquidity Adequacy of Banks, averaged 6.5% throughout 2021, and nearly 35% of it was used in the marketable securities portfolio consisting of treasury bills and government bonds.

In the reporting period, the Bank carried on with short- and long-term swap operations for cash flow management and assets and liabilities harmonization purposes. Türk Eximbank’s swap operations in 2021 aimed at managing the Bank’s FX position and cash flows more effectively and ensuring asset-liability harmony, as well as for arbitrage purposes, were worth USD 27.35 billion, of which USD 27.3 billion was in short-term and USD 50 million was kept in long-term.

Hedge accounting continued to be implemented in order to prevent fluctuations on the profit and loss statement resulting from interest and cross-currency swaps carried out for harmonizing FC funds secured from international markets through bond issuances or other borrowings with the assets composition.

Derivatives (forwards, options and swap transactions) continued to be offered with the purposes of protecting exporters’ competitive strength in global markets, and strengthening their ability to manage the exchange rate risk stemming from FC receivables and FC liabilities and the interest rate risk that might arise from interest rate fluctuations. Option strategies, currency/cross-currency swaps started to be offered to exporters. Work for provision of derivatives backed by commodity/precious metals is nearing completion.

International Relations

close cooperation Türk Eximbank continued to cooperate closely with export credit and insurance agencies and international financial institutions in 2021.

There are over fifty agreements of various content that Türk Eximbank signed with the export credit and insurance agencies of more than thirty countries, as well as multilateral financial institutions. The Bank sustained its close cooperation with these institutions and its efforts for signing new agreements also in 2021.

Within this framework, memoranda of understanding (MoU) were signed for general cooperation in 2021 with Uzbekinvest, the official export credit agency in Uzbekistan, PJSC ECA, the official export credit agency in Ukraine, and Africa Finance Corporation, a multilateral institution supporting infrastructure investments in Africa. The MoU signed with Japan’s official export credit agency JBIC in 2018, which expired, was extended, and the expired MoU with the African Trade Insurance Agency was renewed with a broadened scope.

During 2021, contacts continued to be held for signing new cooperation agreements between Türk Eximbank and multilateral agencies and credit export agencies of other countries, with a particular focus on agreements that will allow co-financing of projects jointly undertaken by Turkish and foreign companies, especially in third countries.

The list of reinsurance agreements signed in previous years with USEXIM (USA), UKEF (United Kingdom), BPIFrance (France) and EKF (Denmark) to help Turkish exporters and contractor firms become more competitive in international markets further grew in 2021 with reinsurance agreements signed with OeKB (Austria), MEHIB (Hungary) and EKN (Sweden).

Türk Eximbank continued to attend the meetings of OECD Export Credits and Credit Guarantees Group, which was established to facilitate information and opinion exchange between member countries’ related institutions regarding officially supported export credits and of which Türkiye became a permanent member in April 1998.

The Bank actively participated in the negotiations for updating the Arrangement on Officially Supported Export Credits which is addressed in the meetings of OECD’s Participants to the Arrangement on Officially Supported Export Credits, within which the Bank acquired “invited participant” (observer) status in 2006 and “participant” status in 2018, and which is important for setting the minimum requirements for export credits to be provided by Participant countries.

Being a member of the Executive Committee of the Berne Union (the International Union of Credit and Investment Insurers), Türk Eximbank actively participated in the Union’s meetings for setting the future strategy and goals. Our Bank stood for Executive Committee membership and was accepted also in the new term. In 2021, the Bank continued to take part in the Union’s Annual Meetings, seminars and workshops.

Being a permanent Executive Committee member of Aman Union (DHAMAN [The Arab Investment and Export Credit Guarantee Corporation] and Commercial & Non-commercial Risks Insurers & Reinsurers in Member Countries of Organisation of Islamic Cooperation), of which our Bank is a founding member, Türk Eximbank actively took part in the Union’s meetings about the Union’s governance and strategic goals, and contributed to its activities.

Our bank has been a permanent member of the Asian Exim Banks Forum since 2017 and held the presidency in the 2020-2021 term. The Annual Meeting of the Forum, which was planned to be organized in our country, was hosted by our Bank and held online due to the measures adopted against the COVID-19 pandemic.

Information Technology

Türk Eximbank continues to ensure both speed and productivity and to efficiently use resources by backing its service infrastructure with new technologies in the light of the advances in information technology.

Our facilitative projects that will fulfill our exporters’ needs were put into life

Türk Eximbank added speed to its electronic transformation processes and brought lending and insurance transactions together on a single online platform as part of its internal and external digitalization efforts. Major novelties introduced in this framework include uploading credit application documents through the Internet branch, collection of Customs Declaration and invoice data for commitment closure and online application return process. In the same vein, Exim Mobile has been developed and put into service, which will allow our exporters to track their notifications, credit and insurance transactions.

Exim Mobile Exim Mobile has been developed and put into service, which will allow our exporters to track their notifications, credit and insurance transactions.

Additional developments, additional workflows and improvements are in progress for the New Insurance Project designed to revamp the insurance infrastructure and manage it by processes, which was launched during 2020. With the Project, online integrations were established with information suppliers and the process of information receiving was accelerated. This project will also contribute to our Insurance Transformation Project.

Steps were taken for external company integrations, giving priority to financial analysis and credit information process digitalization; preparations were completed for the infrastructure that will make the basis of early warning and monitoring systems. System software development for the Domestic Scoring Model was brought to completion. Domestic Scoring Model is developed that will enable its usage also in credit allocation processes, thereby allowing generation of Credit Information and Analysis Reports entailing credit ratings by the system.

Accounting Transformation Project was finalized during 2021, which is designed to renovate both the technical infrastructure and work processes of the accounting system.

New products started to be offered to our exporters include Options, Commodity and Borrowing accounts.

In addition to the above;

New term options, TL disbursement and disbursement in return for FC sales commitment were introduced in rediscount credits in keeping with the amended CBRT Rediscount Credits Implementation Directive effective 01 October 2021.
The internal Exclusion List application was integrated with the incoming payments to our Bank’s credit, insurance and other payments systems, thus adding further speed to control processes.
DWH infrastructure installation was completed regarding business intelligence solutions for monitoring of banking services at the executive level and for their Bank-wide effective reporting and work is initiated on MIS reporting.
Necessary system-related work is commenced for disbursement of İGE Guarantee credits at Eximbank on the basis of Treasury-guaranteed and equity-guaranteed versions of the İhracatı Geliştirme (İGE) Company, which is established as a fund intended to eliminate the collateralization issue exporters face in their access to financing.
DTM Data Integration is completed for obtaining import and export data of our exporters within the scope of data sharing and cooperation between the Ministry of Trade and our Bank.
The Bank initiated assessment of its lending processes. In this framework, Bank-Originated Lending Processes was completed in the first step for shortening the operational processes associated with loans extended from the Bank’s funds and thus increasing efficiency of our Bank’s workflow. Furthermore, developments were made in credit staging, which also contributed to the Credit Transformation Project carried out at our Bank.
As a result of the work carried out, all transactions affecting the Bank’s cash flow, derivatives limits and guarantees can now be tracked on the SAP Treasury Module.
As part of the IT security infrastructure management improvements, database security and compliance management system were installed.
Within the scope of IT trail logging and security warning system infrastructure upgrade, Log Management and Correlation application was procured, and system integration will be completed during 2022.
To achieve alignment with the Regulation on Banks’ Information Systems and Electronic Banking Services published by the Banking Regulation and Supervision Agency (BRSA) in the Official Gazette issue 31069 dated 15 March 2020, and to enhance the IT service level, Technical Help Desk was set up and started activities.
Within the scope of system infrastructure upgrades, necessary product R&D and PoC activities were carried out across the Bank’s digital transformation projects for 2022.
Disbursement, collection and other processes of country loans within the scope of State-Guaranteed and Buyer’s Credits Through Foreign Banks Programs started to be carried out using new technologies.

Developments on our modules are ongoing in line with the Circular on Exports. In this framework, our Güvas project was launched, which is intended for tracking and monitoring customs declarations and export amounts.

Developments related to screens and products continued this year as always. Some examples include Limit Details, Credit Based on Insured Receivable Guarantee Program and Overseas Letter of Guarantee Program. Our developments will continue in the years ahead paying regard to our exporters’ needs and new technologies.

International Obligations

Work is ongoing to harmonize Türk Eximbank programs with WTO, OECD and EU guidelines, and these rules are taken into consideration in the programs implemented.

International Rules

In the programs it implements, Türk 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 Türkiye’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 Türk Eximbank programs with WTO, OECD and EU guidelines, and these rules are taken into consideration in the programs implemented.

In 2021, 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 Türk Eximbank as well. Restricting export credits to coal-fired power plants that do not have carbon capture, usage and storage technology and the updating of the Arrangement were addressed as priority topics in the PG Meetings held in 2021, and the Bank actively participated in related negotiations.

WTO, OECD and EU guidelines Work is ongoing to harmonize Türk Eximbank programs with WTO, OECD and EU guidelines, and these rules are taken into consideration in the programs implemented.

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 Türkiye in relation to the said Regulation in 2018.

USD 22.5 billion in total In 2021, short term loans extended by Türk Eximbank including maturity extensions totaled USD 17.9 billion, and medium-long term domestic loans totaled USD 4.6 billion.