The alternative guarantee types that Turk Eximbank will provide to exporters have been announced

Ali Guney, General Manager of Turkiye Export Credit Bank (Turk Eximbank), regarding the “alternative types of guarantees to be provided to exporters” announced by the Minister of Treasury and Finance Mehmet Simsek said, “Alternative types generally accepted in the banking sector, such as securities pledge, guarantee of surety institutions such as Credit Guarantee Fund (KGF) and Export Development Inc. (IGE), mortgage and real and legal person guarantees, have started to be accepted as collateral.”

Guney made an evaluation to the AA correspondent regarding the provision of loans with different types of collateral, as well as letters of guarantee, in order to solve the financing problems of exporters, as announced by Minister Simsek.

Guney pointed out that Turk Eximbank has expanded its product and service scope by observing the needs of value-added and high-technology exporting companies in accessing finance, with the strategic transformation it has implemented within the scope of its export-oriented growth strategy. He also said that the bank constantly renews itself by following the technological developments of the sector in which it operates.

Guney stated that significant progress has been made in the effective management of companies’ credit risk through established monitoring and artificial intelligence-supported early warning systems and said:

“In this context, diversification of guarantees has been achieved with approaches that take into account the ‘creditworthiness’ and ‘export worthiness’ of exporters. Thus, in addition to the letter of guarantee and Eximbank export receivable insurance policy, generally accepted alternative types in the banking sector such as securities pledge, guarantee of surety institutions such as KGF and IGE, mortgage and real and legal person guarantees have begun to be accepted as collateral.”

“Financing costs will be reduced”

Pointing out the benefits that exporters will gain by diversifying the collateral structure, Guney said:

“An important step will be taken to solve the collateral problem that our exporters experience in benefiting from our bank’s funds, while at the same time, increasing financing costs due to letter of guarantee commissions will be reduced. In addition, it is aimed to contribute to the effective management of our exporters’ financing opportunities by preventing the cost increase caused by the use of both cash and non-cash limits of exporters in all banks.”

Source: AA / Prepared by Irem Yildiz

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