Türk Eximbank’s Targets and Activities in 2022

A major supporter of exporters’ access to financing, Türk Eximbank targets to contribute more efficiently to Türkiye’s export-oriented growth strategy with the new services launched and with its revamped visage within the scope of its Strategic Transformation Program.

Türkiye’s export-oriented growth strategy Türk Eximbank targets to contribute more efficiently to Türkiye’s export-oriented growth strategy with the new services launched and with its revamped visage.

Strongly Carrying on in 2022 with the “Strategic Transformation” Initiated in 2021

Türk Eximbank launched the “Türk Eximbank Strategic Transformation Program” with the aim of more effectively supporting our country’s export strategies and flourishing 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 that 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 have been defined as 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.

Also in 2022, our Bank will charge ahead with the realization of the projects covered in its Strategic Transformation Program.

2022 plans within the scope of the Program include Credit Transformation, Insurance Development, Sales Service and Operation Model Project, IT Transformation, Diversification of Funding Sources, Institutional Relations and Communication Project activities. In addition, initiatives undertaken in Human Resources and Cultural Transformation and Digitalization commenced in 2021 will also be carried on.

Ranked at the Top of our Bank’s Strategic Priorities: Prioritizing SMEs…

As it did in 2021, the Bank will continue in 2022 to take steps to increase new SME customer acquisition and disbursement frequency, and will introduce new implementations to this end.

Accordingly, to bring our Bank’s support programs to a higher number of exporter SMEs, significant customer acquisition is targeted to be achieved by offering İGE guarantee option to customers in the Exporter SME Customer List, which will be obtained under our CBRT Cooperation Protocol.

In addition, rules will be defined which will allow offering term options that will increase new customer acquisition, mainly SMEs, as well as disbursement frequency in loans intermediated by banks, factoring companies and leasing companies, and actualizations will be monitored closely so as to revise the rules as necessary.

Supporting Highly Competitive Sectors Harboring Production and Employment Potential

In view of the changes in global supply chains and trends such as digital and green transformation, it is targeted to increase the share held in global trade by supporting high value-added and medium/high-technology sectors that possess international competitive strength and harbor production/employment potential and to ensure permanent and sustainable improvement in the current accounts balance.

Extending Support to the “Levelling Up Exports to Distant Countries Strategy “

Support will be extended to the Ministry of Trade’s target which is defined as increasing the range of goods and services export, and flourishing trade with high export-potential countries that are geographically distant.

Diversification of the Types of Collaterals

Collateralization, which is one of the major hurdles in exporters’ access to financing, is a topic on Türk Eximbank’s agenda. In 2021, awareness was increased regarding collaterals acceptable to Türk Eximbank besides letters of bank guarantee, and exporters were able benefit from the Bank’s credit programs against different collateral instruments of a financial nature. In addition to that, İhracatı Geliştirme A.Ş. (İGE), which is established in October 2021 under the coordination of the Ministry of Commerce as a partnership of the Turkish Exporters Assembly (TİM) and Türk Eximbank, will provide guarantee that will serve as collateral to credits to be disbursed for export finance. Work is carried out regarding the elements and source of the guarantee to be provided, and in 2022, Türk Eximbank will be extending credit against the said collateral as well. The credits to be disbursed against the guarantee to be provided by İGE will facilitate SMEs’ access to financing in line with the Bank’s strategic goals, thus expanding exports on a broad-base and helping increase exports volume sustainably.

Continued Diversification and Broadening of Derivatives to Protect our Exporters against Currency and Interest Rate Risks

In order to let our exporters manage their currency and interest rate risks, derivatives such as forwards, options and swaps will continue to be offered at the most favorable terms, they will be diversified in line with exporters’ demands and needs, derivatives will be made available intended for commodity risk management besides currency and interest rate risk, and publicity activities will be carried on broadening the usage of those products.

Maintaining Solid Capitalization

On 29 December 2021, the Board of Directors approved increasing Türk Eximbank’s capital of TL 10 billion 800 million, which is fully paid-in, by TL 3 billion to TL 13 billion 800 million, which incremental amount will be paid by the Republic of Türkiye Ministry of Treasury and Finance, and the capital increase process has been finalized by having the capital increase registered before İstanbul Trade Registry Office on 3 February 2022.

New Program Developments

Besides increasing supports in 2021, Türk Eximbank also launched the “Participation Finance Working Capital Loan” program, under which the working capital needs of manufacturers and manufacturer/exporter firms producing goods for export and firms undertaking FC-earning services and activities with the interest-free fund management method.

The Bank’s targets for 2022 include the following:

• Launch the pilot run of the Letter of Credit Confirmation Insurance Program in 2022 with selected one or several banks, which insures the risk of the foreign issuer bank’s non-payment of export letters of credit which are confirmed by a domestic bank due to commercial and/or political risks,
• Bring to completion the work for launching the Political Insurance Risk Program for Overseas Contractors’ Services,
• Approval of the Insurance Policy of the Participation Finance-Based Receivable Insurance Program, the policy-related work of which was completed in 2021, by the Board of Directors; launch the program upon execution of reinsurance (retakaful) agreements and establishment of the system infrastructure.

Introduction of New Digital Solutions for our Exporters

E-transformation projects will be carried on for digitalization of our Bank’s work processes, and operational efficiency will be increased through integrations with external institutions, while diversification of products and funds will be ensured.