EZZİB Discusses Financing Access for Olive and Olive Oil Exporters
At the meeting organized by EZZİB, exporters' access to financing, rediscount loans, foreign exchange conversion support and Eximbank practices were discussed.
The meeting organized by EZZİB addressed exporters' access to financing, rediscount credits, foreign currency conversion support, and Eximbank practices.
The Aegean Olive and Olive Oil Exporters Association (EZZİB) organized an "Access to Financing Information Meeting" to facilitate exporters' access to financing and inform the sector about current financing support.
At the meeting held at the Aegean Exporters Associations service building, representatives from the Central Bank of the Republic of Turkey (TCMB), Turkish Eximbank, and Turkish Trade Bank provided information to exporters about credit, insurance, and financing options available to them, while sector representatives communicated financing access problems and solution proposals directly to officials.
The meeting was attended by EZZİB Chairman M. Emre Uygun as well as senior management representatives from TCMB, Turkish Eximbank, and Turkish Trade Bank.
"Financing models should align with production schedules"
EZZİB Chairman M. Emre Uygun, who opened the meeting, noted that the olive and olive oil sector carries out production entirely with domestic inputs and stated that financing mechanisms need to be structured in accordance with the sector's production periods.
Uygun pointed out that raw material purchases concentrate particularly during the September-January period and noted that producers receive cash payments in Turkish lira during this timeframe.
He emphasized that increasing rediscount credit limits during raw material purchase periods and accelerating credit allocation processes would support the sector's competitive strength.
Proposal for tiered model in foreign currency conversion support
Foreign currency conversion support, which encourages the conversion of export revenues to Turkish lira, was also discussed at the meeting.
EZZİB Chairman M. Emre Uygun noted that the current support rate should be increased for sectors producing with 100 percent domestic inputs and proposed raising foreign currency conversion support to the 7 percent level.
Uygun also stated that a model in which companies converting a larger portion of export revenues to Turkish lira could benefit from progressively higher support would both incentivize exporters and contribute to the country's economy.
TCMB Deputy General Manager of Banking Burhan Mert Angılı noted that applying different support rates by sector presents various challenges from a public policy perspective, but indicated that work continues on alternative models based on added value and productivity.
Current practices in rediscount credits shared
Current information regarding rediscount credits implemented by TCMB was also conveyed at the meeting.
Participants were informed that the daily rediscount credit limit had been raised to TRY 5 billion, the daily utilization limit per company was TRY 60 million, and the total upper limit for non-SME firms was implemented as a minimum of TRY 2.5 billion.
It was also noted that the rediscount credit interest rate at the 19.32 percent level offered an advantageous financing alternative for exporters under current market conditions.
Eximbank introduced new financing instruments
Turkish Eximbank officials provided information about receivables insurance practices for exporters' overseas affiliates, warehouses, and transit trade transactions.
The meeting also shared that preparations continue for the Turnover Policy application for firms implementing exports at certain volumes and a new model for using receivables insurance policies as credit collateral.
Long-term financing for green transition investments
Information was also provided at the meeting about the Green Export Credit sourced from the World Bank.
It was noted that food and olive and olive oil sectors are included within the program's support scope, while financing is provided at an Euribor + 3.50 percent interest rate and terms of up to 8.5 years.
It was stated that the credit can also be used in solar and wind energy investments as well as projects for electric vehicles, electric forklifts, energy efficiency, and water conservation.
The meeting concluded with a question-and-answer section in which exporters' financing access problems and solution proposals were evaluated with public institution representatives.
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