Credit facilities to be provided to medical device manufacturers

A workshop on access to financing for the medical device sector during the European Union Medical Device Regulation process and a pre-financing protocol signing ceremony were held at the Ministry of Commerce. Through this protocol, credit facilities will be provided to medical device manufacturers wishing to operate in the European Union (EU) market via Turkish Eximbank. The EU Medical Device Regulation, which forms a legal framework aimed at ensuring the safety of medical devices in the EU, creates high costs for medical device manufacturers wishing to participate in this market. To address these costs, credit facilities will be provided through Turkish Eximbank to companies affected by the regulation. Under this scope, a protocol was signed between Turkish Eximbank, Export Development Company (İGE AŞ), Turkey's Medicinal Products and Medical Devices Agency and the Ministry of Commerce. Deputy Minister of Commerce Volkan Ağar stated in his remarks at the signing ceremony that the Ministry continues its efforts to facilitate exporters' access to financing. Ağar said, "Under the model we previously implemented, we introduced pre-financing opportunities to the project and program support we provide to our goods and services exporters. In this context, our exporters whose support applications have been approved by our Ministry submit credit applications and are subject to priority evaluation."

Approximately USD 1.2 billion in exports to more than 200 countries in 2023

Noting that exporters whose credits were approved by Turkish Eximbank receive priority collateral from İGE AŞ, Ağar stated that they have also accelerated the process for companies to access credit. Pointing to the added value created by the medical device sector, Ağar said, "The medical device sector exported approximately USD 1.2 billion to more than 200 countries in 2023. EU countries are our main trading partners in this regard. However, we see that the number of companies that have completed the process of adapting to the regulations implemented by the EU in this sector is quite low."

Exporting companies will be able to apply for credit from Turkish Eximbank

Ağar stated that they held discussions with relevant institutions and organizations to prevent damages to medical device exporting companies. "We evaluated all possibilities in this area with all stakeholders. Following the demands from the sector and the positive responses from Turkish Eximbank and İGE AŞ, we decided to expand the scope of our pre-financing model. With the additional protocol we signed coming into effect, exporting companies wishing to benefit from market entry support will be able to apply for credit from Turkish Eximbank, and our exporters whose support applications have been approved by our Ministry will be able to receive their support quickly. Our exporters will also manage the repayment of credits directly provided by Turkish Eximbank. In this way, we will provide a new pre-financing opportunity that will be a lifeline for our sector," he continued. Adil Pelister, Chairman of the Board of the Istanbul Chemical Products Exporters Association (İKMİB), made remarks on the subject. Pelister noted that the signed protocol pioneered an important step regarding the compliance process with the regulation that will bring additional costs to the medical and medical device sector.

"We will continue to be the pioneer and spokesperson of the chemical sector in exports"

Pointing out that the regulation, which forms a legal framework aimed at ensuring the safety and protection of patients for medical devices in the EU, creates high costs for medical device exporters, Pelister said, "As İKMİB, we held discussions with primarily our Ministry of Commerce, Turkish Eximbank and İGE AŞ, and presented our demands regarding the provision of pre-financing support to our exporters during this process and shared our recommendations on behalf of the sector to overcome this obstacle together. With the support provided by Turkish Eximbank, companies will breathe easier and will be able to comfortably manage the additional costs created by the process. As İKMİB, we will continue to be the pioneer and spokesperson of the chemical sector in exports, so that our exporters gain a greater share from global trade and achieve new records in the coming period," he said.