TİM Will Be A Guarantee To Exporters

TİM CHAIRMAN GÜLLE: EXPORT DEVELOPMENT JSC WILL BE THE DRIVING FORCE FOR $300 BILLION

Turkish Exporters Assembly (TİM) and Eximbank established the Export Development Joint Stock Company (IGE, İhracatı Geliştirme Anonim Şirketi) to facilitate exporters' access to financing and contribute to the solution of credit bail problems. Thus, the Turkish exporter, which is the field workers of economy and trade diplomacy, will export without worrying about financing, knowing that they will be supported by a very large ecosystem.

Commenting on the issue, TİM Chairman İsmail Gülle said, "In the pandemic process, we have made our country an important supply base in the world. Therefore, there has been a significant increase in the capacity utilization rate of our country. In the future, we need to meet the world supply. This will only be possible with new investments. The Export Development Joint Stock Company (IGE, İhracatı Geliştirme A.Ş.) we have established will provide financial support to exporter companies, especially SMEs, for the realization of new investments. Thanks to our company, which is established as a fund, our exporters will be able to access the credit directly with a system that will be formed with the bail of TİM without guarantee; will be able to use a huge volume of credit. Export Development JSC will be an important driving force for our $300 billion export target."

Turkish Exporters Assembly (TİM), the only umbrella organization of 100 thousand exporters with 61 exporter associations and 27 sectors, continues its work at full speed to facilitate the access of exporters to finance. In this context, TİM established the Export Development Joint Stock Company (IGE, İhracatı Geliştirme Anonim Şirketi) with a capital of 10 million Turkish Liras with Eximbank on October 14 under the coordination of the Ministry of Commerce. Established as a fund that is accessible to exporters and aims to eliminate the problem of collateral in exporters' access to finance, the company has a 95 percent (9 million 500 thousand Turkish Lira) partnership of TİM and a five percent (500 thousand Turkish Lira) partnership of Eximbank. In the following processes, the legal studies continue for 61 exporters' unions to become partners with the company with the necessary capital contribution. The company is expected to serve exporters as of January 1, 2022.

They will not have to give a mortgage

Through the Export Development JSC, exporters who do not benefit sufficiently from various credit and support opportunities due to lack of collateral will be granted access to the credit by bail. Thus, exporters will not have to mortgage their lands and factories to the bank for getting credit. In line with the export-oriented growth model target, the 'Export Credit Guarantee Fund', which is specialized for companies dealing with export and foreign exchange earning services, will contribute greatly to sustainably increasing the export volume by spreading exports to the base.

"They will be able to use a huge volume of credit with TİM's bail"

Commenting on the establishment of Export Development JSC, TİM Chairman İsmail Gülle said, "Export Development JSC was established to address the difficulties experienced by exporters, especially at the SME level, in access to financing. The exporters have two main problems. The first is to create credit, and the second is to create a letter of guarantee... Thanks to our company, which is established as a fund, our exporters will be able to access the credit directly with a system that will be formed with the bail of TİM without guarantee; will be able to use a huge volume of credit. This structure, which is formed by TİM and exporters' associations, will support our members in financing and will also make a significant contribution to their export business."

"They will be able to export without worrying about financing"

Noting that the need for financing in export has grown in recent times and that Export Development JSC will make an important contribution to this need, Gülle continued: In the pandemic process, Türkiye has become an important supply base in the world. Therefore, there has been a significant increase in the capacity utilization rate of our country. In the future, we need to meet the world supply. This is only possible with new investments. The company we have established will provide financing support to exporter companies, especially SMEs, for the implementation of new investments.  Our company will relieve the exporter with a target of 300 billion dollars; will be an important driving force for our goal. Our export family will feel that there is an institution behind them through our company. Turkish exporter, which is the field workers of economy and trade diplomacy, knowing that it will be supported by a very large ecosystem, will export without worrying about financing.  

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