Financial Boost for Turkish Medical Device Exporters Entering EU Market

Exporters in the medical device sector will receive financial support to access the EU market. Turk Eximbank will provide credit facilities to manufacturers aiming to comply with the EU’s stringent medical device regulations.

The Ministry of Commerce hosted the Medical Device Sector’s Access to Finance in the European Union Medical Device Regulation Process Workshop, where a pre-financing protocol was signed. This agreement involves Turk Eximbank, Export Development Joint Stock Company (IGE AS), Turkish Medicines and Medical Devices Agency, and the Ministry of Commerce.

The EU Medical Device Directive imposes high compliance costs on manufacturers. To alleviate these financial burdens, Turk Eximbank will extend credit to affected companies.

Deputy Minister of Trade Volkan Agar emphasized the Ministry’s ongoing efforts to ease exporters’ access to financing, highlighting the introduction of pre-financing opportunities for project and program supports. Exporters with approved applications can now apply for prioritized credit, streamlining their entry into the EU market.

Ağar stated that IGE AS provides priority guarantees to exporters whose loans have been approved by Turk Eximbank, and that they have also accelerated companies’ access to loans.

Pointing to the added value created by the medical device industry, Agar said, “The medical device industry exported approximately $1.2 billion to more than 200 countries in 2023. EU countries are our main trade partners at this point. However, we see that the number of companies that have completed the adaptation process to the regulations implemented by the EU regarding the sector in question is quite low.”

Stating that it is of great importance that the transition process towards the new regulations is planned correctly and managed smoothly by the medical device industry, Agar said that, as the Ministry, they strive to support the companies and provide the necessary assistance to ensure compliance with the new regulations. “It will be a lifeline for the industry,” Agar noted.

Agar stated that they held meetings with relevant institutions and organizations to prevent the grievances of medical device exporting companies and continued his words as follows:

“We evaluated what can be done in this field together with all stakeholders. In line with the demands from the sector and as a result of the positive feedback from Turk Eximbank and IGE AS, we decided to expand the scope of our pre-financing model. With the additional protocol we signed coming into force, our exporting companies that want to benefit from market entry support will be able to apply for a loan from Turk Eximbank, and our exporters whose support applications have been approved by our Ministry will be able to receive their support quickly. Our exporters will also use the repayment of loans granted directly to Turk Eximbank. In this way, we will provide a new pre-financing opportunity that will be a lifeline for our sector.”

Adil Pelister, Chairman of the Board of Directors of Istanbul Chemicals and Products Exporters Association (IKMIB), stated that with the signed protocol, they pioneered an important step in the compliance process with the regulation, which will bring additional costs to the medical and medical device industry.

Pointing out that the regulation, which is a legal framework aiming to ensure the safety of medical devices and the protection of patients in the EU, creates high costs for medical device exporters, Pelister said:

“As IKMIB, we met with our Ministry of Commerce, Turk Eximbank, and IGE AS and submitted our requests for pre-financing support to our exporters in this process and shared our suggestions on behalf of the sector to overcome this obstacle together. With the support provided by Turk Eximbank, companies will be able to breathe and easily manage the additional costs created by the process. As IKMIB, we will continue to be the pioneer and spokesperson of the chemical industry in exports in the coming period so that our exporters can get a greater share of global trade and break new records.”

Source: AA / Prepared by Irem Yildiz

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