Export Development Joint Stock Company to Be Established

Export Development Company to Solve Exporters' Financing Problems An Export Development Company is being established to eliminate collateral issues in access to financing. This company will be accessible only to exporters. Exporters' access to credit will be provided through guarantee mechanisms. ANKARA (AA) – The establishment process of the Export Development Company (İGE) has been completed. The company's establishment was carried out under the coordination of the Ministry of Commerce. The Export Development Company was established to contribute to the resolution of exporters' access to financing and credit guarantee problems. An announcement was made by the Ministry on the matter. According to the announcement, the establishment of İGE, whose work is being carried out under the coordination of Minister of Commerce Mehmet Muş, was realized with the contribution of relevant institutions and organizations.

Access to Financing Will Be Facilitated

According to an announcement made by the Ministry on the matter, Turkey's economy recorded 7.2 percent growth in the first quarter of 2021 and record growth of 21.7 percent in the second quarter, with the contribution of goods and services exports to the growth rate reaching 10.8 percentage points. For the positive impact of exports on economic growth to be increased and sustained, exports need to be spread to a broader base. While it is necessary to increase companies' export capacity and competitiveness in international markets, one of the most important steps toward this is seen as facilitating exporters' access to financing. Through the work being carried out under the coordination of Minister of Commerce Mehmet Muş, İGE is expected to solve this problem. Through İGE, exporters' access to credit will be provided through guarantee mechanisms. Thus, the collateral problem of importers will be solved and exporters will not have to mortgage their factories or land to banks to obtain credit.

Will Enable Sustainable Growth in Export Volume

İGE was established on 14 October with capital of TRY 10 million through the partnership of Turkey Exporters Assembly at 95 percent (TRY 9.5 million) and Eximbank at 5 percent (TRY 500 thousand). Legislative work is still underway for 61 exporter associations to become partners in the company with the necessary capital contributions. In line with the export-oriented growth model objective, a specialized "Export Credit Guarantee Fund" for companies engaged in exports and foreign exchange-generating services will greatly contribute to the sustainable increase in export volume by facilitating access to financing for small-scale companies in the context of export credit and enabling exports to be spread to a broader base.