WORLD TRADE
ORGANIZATIONG/SCM/N/38/TUR
20 July 1998
(98-2845)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notifications Pursuant to Article XVI:1 of
the GATT 1994 and Article 25 of the SCM Agreement
TURKEY
The following communication, dated 9 July 1998, has been received from the Permanent
Mission of Turkey.
______________
CONTENTS
Page
I. ENCOURAGING INVESTMENTS IN TURKEY ............................................................2
II. CREDIT PROGRAMMES ..................................................................................................6
The Turkish Government wishes to inform the Committee of the latest Decree which allows
for an Investment Encouragement Mechanism to be used in Turkey, notifiable under Article 25.2 of
the Agreement on Subsidies and Countervaili ng Measures.  (Decree No. 98/10755, dated
25 March 1998).
The Decree concerned is strictly a programme for encouraging all investments, it is not
related to direct trade, does not contain specific requirements, and is a regional and horizontal
programme which both domestic and foreign investors can use.
In line with the notification requirements, the general investment encouragement programme
used in Turkey, which is not to be considered as a subsidy programme having direct trade effects or a
special scheme, or specific, or a system related to performance requirements and furthermore which is
a programme which embodies regional and horizontal approaches, is presented below in a descriptive
summary format.
The whole of the programme is based on a plain-and-simple, an investment project proposal
and completion by the investor, whereas the Government in return allows for several measures of
encouragement and easement of operation as far as bureaucratic formalities are concerned.
Furthermore, the complete text of the Decree as a whole, which is being described in
summary, if in need, can be found on the internet pages in its original format and its English version.
(www.treasury.gov.tr/) along with the Decree, statistical data are also available on the same page.G/SCM/N/38/TUR
Page 2
I. ENCOURAGING INVESTMENTS IN TURKEY
1. The title of the Decree which allows for an Investment Encouragement Certificate
Mechanism to be used is:
DECREE CONCERNING STATE ENCOURAGEMENTS TO INVESTMENTS
AND THE INVESTMENT ENCOURAGEMENT FUND
No.: 98/10755, 25 March 1998
2. The purpose of the Turkish investment encourag ement system (Decree No.:  98/10755) is to
encourage, support and orient investments, in- line with international commitments, in conformity
with the objects of Development Plans and Annual Programmes, reduce regional imbalances within
the country, diffuse the capital to a wider base, create new employment opportunities, while taking
advantage of advanced and appropriate technologies with greater added value and to realize
international competitiveness.
3. The system in general, which could be called the "General Investment Encouragement
Programme" (GIEP), regulated by the Decree, covers all investment activities related to the
production of goods and services, research and development, environmental protection, improvement
of quality and standards and support of the small-and medium sized enterprises, the Fund which is
established with this Decree aims to support Small- and Medium-Sized Enterprises (SME's)
investments under a similar mechanism.  (R egulated with the Decree No.:  98/10669).
4. As it has been mentioned above one of the main objectives of the system is and has been in
the past, to eliminate inter-regional imbalances.  For this purpose there have been several regional
classifications  established with the Decree;
(a) Developed regions :  Istanbul and Kocaeli city boundaries, along with Ankara, Izmir,
Bursa, Adana, and Antalya cities Greater Municipality boundaries.
(b) Normal Regions :  Cities situated outside of the Developed Region and Priority
Development Region classifications.
(c) Priority Development Regions : Cities which are determined as the Priority
Development Regions by the Decision of the Court of Ministers.
In Turkey, mainly a regional/horizontal system is implemented in the state encouragement's
for investments.  However, only within the Developed Region classification there is a listing as to the
limitation of what types of investments can take advantage of the encouragement elements.  This
listing covers investments mainly in a general sectoral breakdown point of view which include:
• Electrical energy production investments (i ncluding “autoproduction” investments)
• Infrastructure investments
• Investments to be realized within the fram ework of the Build-Operate (BO) or Build-
Operate-Transfer (BOT)  Models
• Investments aimed at developi ng a new product or model, Research and Development
(R&D) and planning
• Investments related to environmental protection
• Priority technological investments which are determined by the High Commission of
Science and Technology
• Electronics industry related investments
• Ship and yacht building investmentsG/SCM/N/38/TUR
Page 3
• Shipyard investments (Shipbuilding, and repair facilities)
• Other, “services investments” which are to be determined by the Undersecretariat,
including;   technoparks, informatics technology, education, health and tourism
investments.
• Investments that are permitted by the Undersecretariat in order to replace existing
investments which are to be transferred to the Priority Development Regions or
overseas, with the condition being, the realization of the new investment is at the
same place of the one being transferred.
• Expansion, modernization, renewal, quality upgrading, bottleneck elimination,
integration, and completion investments.
• Investments to be permitted by the Undersecretariat, which are completely new
investments with a fixed investment valu e of above US$50 million and include one or
more of the following characteristics;
- necessitating high technology,
- high added value,
- contribution to an increase in tax income,
- contribution to an increase in employment.
5. How the programme works
The whole of the system as it is presented in the Legislation, (Decree's, Communiqué's and related
decisions and procedural arrangements) include step-by-step, detailed definitions and procedures tofollow.
In summary, no matter what sector the investor shall be operating in, all investors who have
prepared their relative investment feasibility studies and proposals, who believe that they shall be
eligible for evaluation, within the set framework of the Decree, apply to the Undersecretariat of
Treasury for the evaluation of their investment project to be considered for encouragement.
There are certain procedural formalities and documentation necessary to be included in the
application, these are technical  formalities such as the already mentioned feasibility study, along with
proforma invoices, information on the investors themselves, information on the proposed location ofthe investment to take place, information on capital requirements etc.
Once the application is complete for evaluation purposes as stated by the Decree and
communiqué's, the eligible investment projects are granted a Certificate or a Permission and
Certificate, after a case-by-case analysis of each project proposal.
As far as all the related procedures are concerned for the investment encouragement system,
there are no differences between foreign and domestic investors.  The "Certificate" mentioned above
provides for the utilization of the encouragement benefits stated as investment encouragement
elements within the Decree.
Since the programme follows a general approach, and since it is implemented on a per
investment project on a horizontal basis it is not possible to calculate the exact values of
encouragement elements given to the investors under this mechanism.  On the average, since the
system as a whole aims at only investment goods (such as the machinery and equipment to be
installed in the factory) rather than goods relating to direct trade (such as raw materials and operatinggoods), the effect of these encouragement's are of no consideration if any to market conditions and/orto international or domestic trade in general.  Since the investment material is embedded into the
investment itself there is no trade-related  circulation of any machinery or equipment which has been
once installed.G/SCM/N/38/TUR
Page 4
The statistical data which can be viewed, relative for these purposes only show the amount of
proposed  investment figures (mainly the fixed investment costs are of importance) which are
extracted from the statistical data kept for Certificates given throughout the years.
Since investments take anywhere from one year to an average of five years, it is a difficult
task to follow up on each project and calculate the outcome/realization and use of the encouragement's
due to the amount of Certificates in circulation, nevertheless, there is a follow-up procedure which
evaluates the outcome of the investment projects in years to come, which is basically a physical
examination of the completion stages of the project.  Once the investment has been completed, an
expert group evaluation takes place and a completion visa is granted, and the certificate is considered
completed and closed.
Within the objectives and the scope of the programme, eligible investments projects which
are granted a certificate can benefit from the following encouragement measures:
a. Customs tax exemption
b. Investment allowance
c. Value Added Tax (VAT) support for the purchase of machinery and equipment
d. Taxes duties and fees exemption
e. Energy support
f. Land allocation
g. Credit allocation from the fund
As mentioned above, in order to be able to benefit from these elements of investment
encouragement, the investor must adhere to and obtain a Certificate of Investment under the Decreewhich set the rules for the GIEP.  Without the granting of the certificate under the general programme,
these elements cannot be used.
Definitions, descriptions of these elements:(a) Customs Tax Exemption
As it is the case for all the elements listed herein, in order to benefit from
Customs Tax Exemption, the investment project has to be provided with a
"Certificate" granted by the Undersecretariat of Treasury.
For projects which are evaluated by the Undersecretariat, on a project basis,
Customs Duty of the machinery and equipment shall be subject to exemption.  Once
the exemption is listed on the "Certificate", the investor can import his/her machinery
and equipment listed on the approved listing, namely the "Global List" and the
accompanied "entry form detailed lis tings" aimed only towards use for that
investment alone.
At the stage of importation, the Customs officials at the port of entry allow
for the entry in accordance with the certific ate and the listings in parallel with the
Customs Law which allows for this procedure.
(b) Investment Allowance
Investment allowance is a tax exempting granted to income or corporate tax
payers.  Investments for which an allowance is foreseen in the incentive certificate
shall benefit from this tool of encouragement.  The maximum ratio (100 per cent)shall be applied for investments to be made in special importance sectors and priority
regions, the least ratio shall be applied for other investments (30 per cent).  FurtherG/SCM/N/38/TUR
Page 5
application and implementation relating to this tool shall be carried out by the
Ministry of Finance under the General Tax Law.
(c) Value Added Tax (VAT) support towards the purchase towards the purchase of
machinery and equipment
Value Added Tax amount of the new machinery and equipment manufactured
locally, which take place in the local global lists prepared pursuant to an Incentive
Certificate, approved on a project basis by the Undersecretariat are paid to investors
from Fund resources.  However, investments to be made in the Priority Development
Regions benefit from this measure with an extra 10 per cent.
(d) Tax duties and fees exemption
The tax, duty and related fees, during the investment stage, for operations and
processes of obtaining standard credits through banks and other official dues such as
land registration, company registration etc. are exempted in accordance with therelated;  Law No.:  488 (dated 1 July 1964) and Law No. 492 (dated 2 July 1964).
The implementation shall be done in accordance with Temporary Article 2 of the Law
No. 3505 (dated 3 December 1988) which are all general Tax Laws.
(e) Energy support
Since the mechanism has not been established for the working of this element
there is no implementation at present.
(f) Land Allocation
The implementation shall take place in accordance with the Law No. 4325
(dated 21 January 1998).  But, since the actual working conditions for the
implementation of the land allocation element has not yet been established, at this
period in time, this element of encouragement is not being used.
(g) Credit allocation from the fund
Credit allocation measure under the GIEP at present is only used, aimed at
Small- and Medium-Sized Enterprises (SME's) under a similar investment
encouragement programme through intermediary banks, the credit programme in use
through the Halkbank intermediary at present, issues the same type of certificatesystem as mentioned only with an allocation towards the purchase of investment
related machinery and equipment of SME's.
In conclusion, the programme for investment encouragement as it has been summarized, is
not to be considered as a subsidy programme in definition, the programme is completely relateddirectly with investment projects, not directly with trade matters.  The set-up of a factory or a hotel or
any other kind of investment facility to be considered do not have direct trade effects, and in that
sense there is no question of an export subsidy.
The programme in general, aims at the overall development of the country through
encouraging all investments in the programme.  Ther e is no government intervention, that is to say,
there is no imposing criteria as far as the choice of the sector of operation the investor is to decide on.G/SCM/N/38/TUR
Page 6
1. Title of the subsidy programme
II. CREDIT PROGRAMMES
Türk Eximbank supports exporters, export-oriented manufacturers and overseas investors
with short-, medium- and long-term cash and non-cash credit programmes.  Moreover, export
receivables are discounted in order to promote sales on deferred payment conditions and to increase
export trade volume.
Short-term Export Credits
In the first half of 1998, 65 per cent of short-term credits offered by Türk Eximbank was
extended via intermediary Turkish commercial banks which are allocated credit lines and 35 per cent
of the short-term credits was extended directly by Türk Eximbank.
Pre-shipment Turkish Lira Export Credit (PSEC TL) Programme
A short-term credit facility extended in TL covering all sectors and providing financial
support to exporters from the early stages of production.
Small and Medium Scale Enterprises (SMSEs) Credit  facility
(a sub-programme of PSEC TL)
Priority Development Areas Credit facility
(a sub-programme of the PSEC TL)
Pre-shipment Foreign Currency Export Credit (PSEC FX) Programme
A short-term credit facility extended in FX covering all sectors and providing financial
support to exporters from the early stages of production.
Foreign  Trade Companies (FTC) Credit Lines
Extended to foreign trade corporate  companies and sectoral foreign trade companies in both
TL and foreign currency to meet their export financing needs.
The programme has TL and foreign exchange credit options:
FTC Short-term Export Credit Programme
FTC Short-term Foreign Currency Credit Programme
Performance Related Foreign Currency:
Extended to exporters and export-oriented manufacturers in foreign currency.
Performance Related Turkish Lira Export Credit Programmes
Extended to exporters and export-oriented manufacturers in TL.G/SCM/N/38/TUR
Page 7
Tourism Marketing Programme
Travel agencies which attract more than US$1 million worth of foreign currency to Turkey
annually are eligible for this credit which has a maximum repayment period of 180 days.
Short-Term Export Discount Programme
A post-shipment finance facility in which export receivables subject to bankers' acceptances
provided by commercial banks and/or irrevocable letters of credit are discounted by Türk Eximbank.
Medium and Long-Term Export Credits
Buyers Credit/Insurance/Guarantee Programme
Türk Eximbank extends credit lines under sovereign guarantee to correspondent banks and
financial institutions in various countries.  Within the framework of this programme, financing
facilities are allocated for both export and project finance.
Islamic Development Bank (IDB) Export Financing Scheme
Türk Eximbank acts as an intermediary for the Export Financing Scheme, established
whereby the IDB and the buyer's risk is borne by the IDB.  It entails financing on buyer credit basis.
IDB Import Trade Financing Operations (ITFO Line)
A medium-term revolving financing facility provided by IDB's ITFO Line financing scheme.
Export commitment is required by Türk Eximbank from the firms which benefit from the programme.
Overseas Chain Store Investment Credit Programme
Türk Eximbank supports Turkish entrepreneurs' overseas investments for the establishment of
shopping malls and chain stores in which Turkish brand consumer goods may be offered for sale.
Letter of Guarantee Programme for Shipbuilding and Exporting
Turkish firms involved in shipbuilding and/or the export of ships will be provided letters of
guarantee in order to secure financing from both domestic and foreign banks or obtain prefinancing
either in advance or in instalments from the buyer.
Specific Export Credit Programme
Provides support to some specific export projects, such as new product exports to the new
markets, in addition to the companies which are conducting shipbuilding and factory construction, and
to manufacturer/exporters that produce high value-added industrial goods, such as automotive,electronic appliances, and durable consumer goods, for exporting.
Insurance Programmes
Through the export credit insurance programmes, which is one of the Türk Eximbank's main
areas of activity, exporters' receivables are insured against commercial and political risks within
certain limits.G/SCM/N/38/TUR
Page 8
Short-Term Export Credit Insurance
Short-Term Whole Turnover Export Credit Insurance Programme
Provides companies with one year blanket insurance cover for exports purchased on short-
term credits.  This programme covers the exports of capital and semi-capital goods.
Post-Shipment Export Credit Discount Programme
A short-term facility where two of the leading Turkish commercial banks (with whom Türk
Eximbank reached an agreement) discount the export receivables related to shipments covered under
the Short-Term Export Credit Insurance programme of Türk Eximbank.
Medium- and Long-Term Insurance Facilities
Specific Export Credit Insurance Programme
A single buyer insurance programme providing cover against political and commercial risks
for both the preshipment and post-shipment stages.  This programme covers the exports of capital and
semi-capital goods.
Specific Export Credit Insurance Post-shipment Political Risk Insurance Programme
A new single buyer insurance programme providing cover against political risks in the post-
shipment stage for receivables with credit terms of up to five years relating to the export of capital and
semi-capital goods.
Specific Export Credit Insurance Comp rehensive Post-Shipment Risk Policy
Provides cover for the medium- and long-term exports of capital and semi-capital goods
against both commercial and political risks.
Overseas Contractors' Services Insurance Programme
Provides cover against non-payment for both the goods and services elements of
constructional work contracts.  No policies have been issued under this programme and it is currently
under review.
Overseas Investment Insurance/Guarantee Programme
A medium- or long-term scheme applies to new direct investments made by Turkish
companies in overseas enterprises.  No policies have been issued under this programme and it is
currently under review.G/SCM/N/38/TUR
Page 9
2. Policy objective and/or purpose of the subsidy
Credit Programmes
Short-Term Export Credits
Preshipment Turkish Lira Export Credit (PSEC TL) Programme
Aims to meet the financing needs of exporters and/or export-oriented producers starting from
the early stages of production.
Small and Medium Scale Enterprises (SMSEs) Credit  facility
Aims to support SMSEs.
Priority Development Areas Credit facility
Aims to help exporters in priority development areas and ultimately eliminate the social and
economic gaps which exist between these regions and Turkey's developed regions.
Preshipment Foreign Currency Export Credit Programme
Same as PSEC TL.
Foreign Trade Companies Credit Lines
Aims to assist large export trading companies in their export financing needs.
Performance Related Foreign Currency and Turkish Lira Export Credit Programmes
Aims to increase the competitiveness of exporters in international markets.
Short-Term Export Credit Discount Programme
Aims to increase the competitiveness of Turkish exporters in international markets by
enabling them to sell Turkish goods on deferred payment conditions and eliminating overseas risksthereby encouraging them to enter into new and target markets.
Tourism Marketing Credit Programme
Aims to provide finance to travel agencies for their promotional and marketing activities
abroad and thus contribute to the Turkey's balance of payment by increasing tourism revenues.
Medium- and Long-Term Export Credits
Buyers Credit/Insurance/Guarantee Programme
Aims to boost the competitiveness of Turkish exporters and contractors in international
markets.  Through this programme, Türk Eximbank enables foreign buyers to purchase Turkish goods
and services on deferred payment conditions.  Moreover, the Bank provides a risk-free environment to
these companies in their business activities.G/SCM/N/38/TUR
Page 10
Islamic Development Bank (IDB) Export Financing Scheme
Aims to provide financing for all goods having at least 40 per cent domestic content exported
to member and non-member countries of the Organization of Islamic Conference (OIC).
IDB Import Trade Financing Operations (ITFO Line)
Aims to provide finance for the imports of raw materials;  semi-capital and capital goods from
member and non-member countries of OIC, which are used in the production of export goods.
Overseas Chain Store Investment Credit Programme
Aims to support direct sales of Turkish brand goods to consumers in foreign markets.
Letter of Guarantee Programme for Shipbuilding and Exporting
Aims to provide export credit facilities to Tu rkish dockyards in order to increase their shares
in international markets.
Specific Export Credit Programme
Aims to meet credit demands which can not be fulfilled within the existing credit programmes
of Türk Eximbank.
Insurance Programmes
As a result of revisions made in February 1997, Short-Term Export Credit Insurance, which
had previously been compulsory for the beneficiaries of the Pre-shipment Export Credit Programme,
became optional.  In order to facilitate exports to priority target markets through the provision of
insurance protection Türk Eximbank has extended insurance lines to selected banks in these countries
within the framework of Trade Financing Agreements.  Under these agreements, ILCs issued by these
banks are covered against political and commercial risks.
Short-Term Export Credit Insurance
Short –Term Whole Turnover Export Credit Insurance Programme
This post-shipment facility aims to provide cover against political and commercial risks.
Post-Shipment Export Credit Discount Programme
The Bank aims to channel a proportion of the commercial banks' funds to export financing.
Medium- and Long-Term Insurance Facilities
Specific Export Credit Insurance Programme
Aims to provide insurance cover against commercial and political risks for the export of
capital and semi-capital goods having at least 60 per cent domestic content and sold on credit terms ofone to five years maturity.G/SCM/N/38/TUR
Page 11
Specific Export Credit Insurance Post-shipment Political Risk Insurance Programme
Aims to provide insurance cover against political risks in the post-shipment stage for
receivables with credit terms of up to five years relating to the export of capital and semi-capital
goods with at least 60 per cent domestic content.
Specific Export Credit Insurance Comp rehensive Post-Shipment Risk Policy
Aims to provide cover to the medium- and long-term exports of capital and semi-capital
goods against both commercial and political risks.
Overseas Contractors' Services Insurance Programme
Aims to insure Turkish contractors' overseas activities in politically risky countries.
Overseas Investment Insurance/Guarantee Programme
Aims to provide cover against political risks for the overseas investments of Turkish firms.
3. Background and authority for the subsidy
Türk Eximbank regularly presents its annual programmes to the Supreme Advisory and
Credit Guidance Committee chaired by the State Minister for Treasury.  This Committee fixes upper
limits of credits to be extended by the Bank, guarantees to be issued and insurance transactions to be
effected either as a total amount or by countries.  Procedures and guidelines concerning the
implementation of all above-mentioned programmes ar e administered within the framework of annual
programmes by the Board of Directors of the Bank.  Regarding medium- and long-term credit,
guarantee and insurance facilities, the Bank fully  complies with OECD Consensus which determines
the guidelines for the officially supported export credits for two years or more.  In April 1998, Türk
Eximbank became a full member of Export Credits and Credit Guarantees Group of OECD and also
in 1994, it became a full member of the Berne Union, an international association of export credit
insurers.  Türk Eximbank has been sending regular information to these organizations.
4. Form of the subsidy
Short-term export credits
In the form of a loan.
Buyers Credit/Insurance/Guarantee Programme
It may be in the form of direct lending, insurance or guarantee.
Other medium- and long-term export credits
In the form of a loan.
Short, Medium and Long-Term Insurance Facilities
In the form of export credit insurance.G/SCM/N/38/TUR
Page 12
5. To whom and how the subsidy is provided
Credit Programmes
Short-Term Export Credits
Preshipment Turkish Lira Export Credit (PSEC TL) Programme
Extended to manufacturers, manufacturer-exporters and exporters and the interest rate is
determined by Türk Eximbank according to money market rates and loan repayment periods.
Small- and Medium-Scale Enterprises (SMSEs) Credit facility
Extended only to small- and medium-scale manufacturers and manufacturer exporters of up to
150 employees.  Interest rate is same as that of PSEC TL.
Priority Development Areas Credit facility
Extended to companies located in Turkey's pr iority development areas.  Interest rate is
slightly lower than PSEC TL interest rate.
Preshipment Foreign Currency Export Credit Programme
Extended to manufacturers, manufacturer-exporters and exporters.  Interest rate is
LIBOR+spread or FIBOR+spread and TIBOR for JPY credits.  Spread is determined by TürkEximbank.
Foreign Trade Companies Credit Lines
Extended to Foreign Trade Corporate Companies (FTCC) and Sectoral Foreign Companies
(SFTC) and allocated on the basis of previous year's export performance.  Applicants must be entitled
to FTCC and SFTC status by the Foreign Trade Department.  Interest rate for FTC Short-Term
Export Credit Programme is the same with that of PSEC TL and interest rate for FTC Short-Term
Foreign Currency Credit Programme  is the same with that of PSEC FX.
Performance Related Foreign Currency and Turkish Lira Export Credit Programmes
Extended to manufacturers, manufacturer-exporters and exporters except FTCC and SFTC.
The interest rate for FX option is the same with that of PSEC FX and the rate for TL option is the
same as that of PSEC TL.
Short-Term Export Credit Discount Programme
Export receivables subject to bankers' acceptance and/or irrevocable letters of credit are
discounted by Türk Eximbank and in this way a post-shipment financing facility is provided for
Turkish exporters.  Export receivables with a maturity of up to 180 days are discounted on LIBOR.
Tourism Marketing Credit Programme
Travel agencies which attract more than US$1 million worth of foreign currency to Turkey
annually are eligible for this credit which has a maximum repayment period of 180 days.  The interest
rate is 75 per cent per annum.G/SCM/N/38/TUR
Page 13
Medium- and Long-Term Export Credits
Buyers Credit/Insurance/Guarantee Programme
Credit lines are extended under sovereign guarantee to correspondent banks and financial
institutions in various countries.  Interest rates are established between the parties concerned and also
according to the OECD Consensus.
Islamic Development Bank (IDB) Export Financing Scheme
Extended to Turkish exporters who export goods having at least 40 per cent domestic content
to member and non-member countries of OIC.  Mark-up is determined by the IDB within a margin of5.5-6 per cent per annum on disbursed loans.
IDB Import Trade Financing Operations (ITFO Line)
Extended to Turkish importers for their impor ted input requirements.  The mark-up rate is
6 per cent for the imports from the member countries of OIC and 7 per cent for the imports from non-
member countries of OIC.
Overseas Chain Store Investment Credit Programme
Extended to Turkish entrepreneurs who invest abroad for the establishment of shopping malls
and chain stores in foreign countries.  The interest  rate is determined specifically for each project
according to market conditions and characteristics of the projects.
Letter of Guarantee Programme for Ship-building and Exporting
Turkish firms involved in shipbuilding and/or the export of ships will be provided letters of
guarantee in order to secure financing from both domestic and foreign banks or obtain prefinancing
either in advance or in instalments from the buyer.  The commission rate is determined by Türk
Eximbank for each transaction.
Specific Export Credit Programme
A medium-term financing facility provided to manufacturers/exporters for their foreign
currency generating projects in Turkey or abroad at preshipment stage.  It is provided with the terms
determined on project basis.
Insurance Programmes
Short-Term Export Credit Insurance
Short-Term Whole Turnover Export Credit Insurance Programme
All Turkish exporters are eligible for this programme.  The premium rates vary according to
the risk classification of the buyer's country, the terms and conditions of payment and the nature of the
buyer (public/private)
Post-Shipment Exporter Credit Discount Programme
Export receivables of Turkish exporters related to shipments covered under the Short-Term
Export Credit Insurance Programme of Türk Eximba nk are discounted by commercial banks.  TheG/SCM/N/38/TUR
Page 14
maturity is up to 360 days and the interest rate applied is LIBOR+spread.  Spread is determined by
Türk Eximbank.
Medium- and Long-Term Insurance Facilities
Specific Export Credit Insurance Programme
All Turkish exporters are eligible for this programme.  The premium rates vary according to
the risk classification of the buyer's country, the terms and conditions of payment and the nature of the
buyer (public/private).
Specific Export Credit Insurance Post-shipment Political Risk Programme
Same as Specific Export Credit Insurance Programme.
Specific Export Credit Insurance Comp rehensive Post-Shipment Risk Policy
Same as Specific Export Credit Insurance Programme.
Overseas Contractors' Services Insurance Programme
Turkish contracting companies engaged in turn  key or partial building projects, or the
expansion and assembly of industrial plants tendered by an overseas employers are eligible for this
programme.
Overseas Investment Insurance/Guarantee Programme
Turkish companies who have new direct investments in overseas enterprises.  Premium rates
vary according to country and level of investment.
6. Duration of the subsidy
There is no time-limit to Türk Eximbank programmes.  The programmes may be revised,
eliminated or new programmes are introduced according to the requirements of Turkish exporters andinternational rules and regulations.G/SCM/N/38/TUR
Page 15
TÜRK EXIMBANK'S CREDITS
IN THE THREE MOST RECENT YEARS
($ million)
Programmes 1995 1996 1997
Preshipment Turkish Lira Export Credit 921.3 772.3 732.1
Preshipment Foreign Currency Export Credit 1,392.4 1,361.2 1,126.1
FTC Short-Term Export Credit 111.4 190.7 125.6
FTC Short-Term Foreign Currency Credit 230.2 361.0 415.1
Performance Related TL Export Credit - - 84.9
Performance Related FX Export Credit 149.2 282.5 394.7
Tourism Marketing Credit - - 15.1
Buyer Credit/Insurance/Guarantee Programme 137.9 97.6 113.3
IDB Export Financing Scheme 16.5 19.1 3.4
Overseas Chain Store Investment Credit - - 8.2
Letter of Guarantee Programme for
Shipbuilding and Exporting- - 5.1
__________