Turkish Eximbank; the only financial institution to reduce interest rates in Turkey

Türk Eximbank started forward-future transactions for exporters under the direction of the exchange rate in 2011 and has been practicing it since then. It is reported however that this practice was not favored by exporters as certain premium needs to be paid for option transactions. Forward transactions are easier as compared to option. Türk Eximbank provides ”SME”s with this service without targeting profits.

The total amount of support Eximbank provided for exporters last year was USD 33 billion. As of end of November this support exceeded USD 35 billion and is expected to reach USD 40 billion by the end of the year.

On the other end Eximbank has set a target of USD 46 billion for 2018 which corresponds to an increase of 15 percent. Eximbank supported 23 percent of Turkey’s exports in 2016 and it has supported 25 percent so far this year (2017). The establishment wants to increase this figure to 27 percent in 2018.