WORLD TRADE
ORGANIZATIONG/SCM/N/16/TUR
G/SCM/N/25/TUR
23 July 1998
(98-2910)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
UPDATING NOTIFICATIONS PURSUANT TO ARTICLE XVI:1 OF THE
GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON
SUBSIDIES AND COUNTERVAILING MEASURES
TURKEY
The following communication, dated 9 July 1998, has been received from the Permanent
Mission of Turkey.
_______________
TABLE OF CONTENTS
I. UPDATE NOTIFICAT ION (1996) .....................................................................................1
II. UPDATE NOTIFICAT ION (1997) ...................................................................................10
III. AGRICULTURE................................................................................................................ .19
I. UPDATE NOTIFICATION (1996)
1. Title of the subsidy programme
Credit programmes
Short-Term Export CreditsPre-Shipment Export Credit (PSEC) Programme
PSECs are allocated to agriculture, mining and industrial sectors from the early stages of
production.
Small and Medium Scale Enterprises (SMSEs) Credit  facility
(a sub-programme of PSEC)
Priority Development Areas Credit facility
(a sub-programme of the PSEC).
Foreign Currency Export Programme
This facility is like the foreign currency option of PSEC.G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 2
Foreign Trade Companies Credit Lines
This facility assists large export trading companies in their export financing needs.
The programme has TL and foreign currency credit options:
FTC Short-term Export Credit Programme
(FTC Short-term Rediscount Credit Programme is renamed as FTC Short-term Export Credit
Programme)
FTC Short-term Foreign Currency Credit Programme
Performance Related Foreign Currency Export Credit Programme
The credit is extended in foreign currency (USD/DM/GBP/JPY).
Short Term Export Credit Discount Programme
Under this programme, export receivables subject to bankers' acceptances provided by
commercial banks and/or irrevocable letters of credit are discounted by Turk Eximbank.
Medium and Long-term Export Credits
Buyers Credit/Insurance/Guarantee Programme
Turk Eximbank extends credit lines under sovereign guarantee to correspondent banks and
financial institutions in various countries.  Within the framework of this programme, financingfacilities are allocated for both export and project finance.
Islamic Development Bank (IDB) Longer Term Trade Financing Scheme
Turk Eximbank acts as an intermediary for the Longer Term Trade Financing Scheme,
established whereby the IDB and the buyer's risk is borne by the IDB.
IDB Import Trade Financing Operations (ITFO Line)
This is a medium term revolving financing facility provided by IDB's ITFO Line financing
scheme.
Overseas Chain Store Investment Credit Programme
Under this programme Turk Eximbank supports Turkish entrepreneurs' overseas investments
for the establishment of shopping malls and chain stores in which various consumer goods may be
offered for sale.
Letter of Guarantee Programme for Ship-building and Exporting
Under this programme, Turkish firms involved in ship-building and/or the export of ships will
be provided letters of guarantee in order to secure financing from both domestic and foreign banks orobtain pre-financing either in advance or in instalments from the buyer.G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 3
Insurance Programmes
Short Term Export Credit Insurance
Short Term Whole Turnover Export Credit Insurance Programme
Short Term Export Credit Insurance provides companies with one year blanket insurance
cover for exports purchased on short term credits.
Post-Shipment Export Credit Discount Programme
This is a short term credit facility where two of the leading Turkish commercial banks (with
whom Turk Eximbank reached an agreement) discount the export receivables related to shipments
covered under the Short Term Export Credit Insurance programme of Turk Eximbank.
Medium and Long Term Insurance Facilities
Specific Export Credit Insurance Programme
This is a single buyer insurance programme providing cover against political and commercial
risks for both the pre-shipment and post-shipment stages.
Specific Export Credit Insurance Post-shipment Political Risk Programme
This is a new single buyer insurance programme providing cover against political risks in the
post-shipment stage for receivables with credit terms of up to 5 years relating to the export of capitaland semi-capital goods.
Overseas Contractors' Services Insurance Programme
This 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 Programme
This 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 iscurrently under review.
2. Policy objective and/or purpose of the subsidy
Credit ProgrammesShort-term Export CreditsPre-shipment Export Credit (PSEC) Programme
It aims to meet the financing needs of exporters and/or export oriented producers starting
from the early stages of production.G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 4
Small and Medium Scale Enterprises  (SMSEs) Credit facility
(a sub-programme of PSEC).  It aims to support SMSEs.
Priority Development Areas Credit facility
(a sub-programme of the PSEC).  It aims to help exporters in priority development
areas and ultimately eliminate the social and economic gaps which exist between these
regions and Turkey's more developed regions.
Foreign Currency Export Credit Programme
Same as PSEC.
Foreign Trade Companies Credit Lines
This facility aims to assist large export trading companies in their export financing needs.
Performance Related Foreign Currency Export Credit Programme
It aims to increase the competitiveness of exporters in international markets.
Short Term Export Credit Discount Programme
It aims to increase the competitiveness of Turkish exporters by allowing them to offer more
favourable payment terms to their customers.
Medium and Long-Term Export Credits
Buyers Credit/Insurance/Guarantee Programme
It aims to enable foreign buyers to purchase Turkish goods and services on deferred payment
conditions.  Moreover, the Bank provides a risk free environment for Turkish contractors.
Islamic Development Bank (IDB) Longer Term Trade Financing Scheme
It aims to provide financing for all goods having at least 40 per cent domestic content
exported to member countries of the Organisation of Islamic Conference (OIC).
IDB Import Trade Financing Operations (ITFO Line)
It 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
It aims to support direct sales of Turkish brand goods to consumers in foreign markets.
Letter of Guarantee Programme for Ship-building and Exporting
It aims to provide export credit facilities to Turkish dockyards.G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 5
Insurance programmes
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.
Applicants to PSEC Programme must be Short-Term Whole Turnover Export Credit Insurance policy
holders.
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
It 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 of
1 to 5 years maturity.
Specific Export Credit Insurance Post-shipment Political Risk Programme
It aims to provide insurance cover against political risks in the post-shipment stage for
receivables with credit terms of up to 5 years relating to the export of capital and semi-capital goodswith at least 60 per cent domestic content.
Overseas Contractors' Services Insurance Programme
It aims to ensure Turkish contractors against losses arising from commercial and political
risks.
Overseas Investment Insurance Programme
It aims to provide cover against political risk s such as expropriation, war and restrictions on
remittances.
3. Background and authority for the subsidy
Turk 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 beeffected 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 Ba nk.  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.G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 6
4. Form of the subsidy
Short-term export credits
In the form of 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 loan.
Short, Medium and Long Term Insurance Facilities
In the form of export credit insurance.
5. To whom and how the subsidy is provided
Credit ProgrammesShort-term Export CreditsPre-shipment Export Credit (PSEC) Programme
Credits are extended to manufacturers, manufacturer-exporters and exporters and the interest
rate is determined by Turk Eximbank according to money market rates and loan repayment periods.
Small and Medium Scale Enterprises (SMSEs) Credit facility
Credits are extended only to small and medium scale manufacturers and manufacturer
exporters of up to 200 employees.  Interest rate is same as that of PSEC.
Priority Development Areas Credit facility
Credits are extended to companies located in Turkey's priority development areas.  Interest
rate is slightly lower than PSEC interest rate.
Foreign Currency Export Credit Programme
Credits are extended to manufacturers, manufacturer-exporters and exporters.  Interest rate is
LIBOR+spread or FIBOR+spread and TIBOR for JPY credits.  Spread is determined by Turk
Eximbank.
Foreign Trade Companies Credit Lines
Credits are 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 is determined byTurk Eximbank in accordance with developments in money markets.G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 7
Performance Related Foreign Currency Export Credit Programmes
Credits are extended to manufacturers, manufacturer-exporters and exporters except FTCC
and SFTC.   The interest rate is slightly lower than that applied for Foreign Currency Export CreditProgramme.
Short Term Export Credit Discount Programme
Export receivables subject to bankers' acceptance and/or irrevocable letters of credit are
discounted by Turk Eximbank and in this way a post-shipment financing facility is provided for
Turkish exporters.  Export receivables with a maturity of up to 120 days are discounted on LIBOR.
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 parties concerned and also
according to the OECD Consensus.
Islamic Development Bank (IDB) Longer Term Trade Financing Scheme
Credits are extended to Turkish exporters who export goods having at least 40 per cent
domestic content to member countries of the OIC.  Mark-up is determined by the IDB within a margin
of 5.5-6 per cent per annum on disbursed loans.
IDB Import Trade Financing Operations (ITFO Line)
Credits are extended to Turkish importers for their imported 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
Credits are 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 ship-building 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 pre-financing
either in advance or in instalments from the buyer.  The commission rate is determined by TurkEximbank for each transaction.G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 8
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 Export Credit Discount Programme
Export receivables of Turkish exporters related to shipments covered under the Short-term
Export Credit Insurance Programme of Turk Eximba nk are discounted by commercial banks.  The
interest rate applied is LIBOR+spread.  Spread is determined by Turk 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.
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 employer are eligible for this
programme.
Overseas Investment Insurance Programme
Turkish companies who have a 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 Turk Eximbank programmes.  The programmes may be revised,
eliminated or new programmes are introduced according to the requirements of Turkish exporters andinternational rules and regulationsG/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 9
.TURK EXIMBANK'S CREDITS
IN THE TWO MOST RECENT YEARS
Programmes 1994 1995
PRE-SHIPMENT EXPORT CREDIT (TL Billion) (1) 22,201 36,442
TARGET MARKET EXPORT CREDIT (TL Billion) (2) 3,214 5,026
FOREIGN CURRENCY EXPORT CREDIT ($ Million) 570 1,392
SMSE EXPORT CREDIT (TL Billion) (3) 283 1,277
FTC SHORT-TERM FOREIGN CURRENCY CREDIT  ($ Million) 179.0 228.0
PERFORMANCE RELATED FX-EXPORT CREDIT ($ Million) (4) 44.7 149.2
FTC SHORT-TERM EXPORT CREDIT (TL Billion) 3,913 5,078
PRIORITY DEVELOPMENT AREAS EXPORT CREDIT (TL Billion) - 9.50
IDB LONGER-TERM TRADE FINANCING SCHEME ($ Million) 7.4 16.5
BUYERS CREDIT/INSURANCE/GUARANTEE PROGRAMME
($ Million) (5)161.2 14.5
NOTES
(1) SMSE and Priority Development Areas credits became sub-programmes of Pre-Shipment
Export Credit Programme in 1996.
(2) Introduced in April 1993 and discontinued in January 1996.
(3) Introduced in May 1994.(4) Introduced in August 1994.
(5) Project credits extended under this programme are not included.
Average Exchange Rates:
1994: $1 = TL 29,7041995: $1 = TL 45,704G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 10
II. UPDATE NOTIFICATION (1997)
1. Title of the subsidy programme
Credit programmes
Short-Term Export CreditsPre-Shipment Turkish Lira Export Credit (PSEC TL) Programme
Pre-shipment Export Credit Programme is renamed as Pre-shipment Turkish Lira Export
Credit Programme).  PSECs are allocated to agriculture, mining and industrial sectors from the early
stages of production.
Small and Medium Scale Enterprises (SMSEs) Credit  facility
(a sub-programme of PSEC)
Priority Development Areas Credit facility
(a sub-programme of the PSEC).
Pre-shipment Foreign Currency Export Credit  (PSEC FX) Programme
(Foreign Currency Export Programme is renamed as Pre-shipment Foreign Currency Export Credit
Programme)
Credits are allocated in foreign currencies.
Foreign Trade Companies Credit Lines
This facility assists large export trading companies in their export financing needs.
The programme has TL and foreign exchange credit options:
FTC Short-term Export Credit Programme
(FTC Short-term Rediscount Credit Programme is renamed as FTC Short-term Export Credit
Programme)
FTC Short-term Foreign Currency Credit Programme
Performance Related Foreign Currency and Turkish Lira Export Credit Programmes
Short Term Export Credit Discount Programme
Under this programme, export receivables subject to bankers' acceptances provided by
commercial banks and/or irrevocable letters of credit are discounted by Turk Eximbank.
Tourism Marketing Credit Programme
Medium and Long-term Export CreditsG/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 11
Buyers Credit/Insurance/Guarantee Programme
Turk 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) Longer Term Trade Financing Scheme
Turk Eximbank acts as an intermediary for the Longer Term Trade Financing Scheme,
established whereby the IDB and the buyer's risk is borne by the IDB.
IDB Import Trade Financing Operations (ITFO Line)
This is a medium term revolving financing facility provided by IDB's ITFO Line financing
scheme.
Overseas Chain Store Investment Credit Programme
Under this programme Turk Eximbank supports Turkish entrepreneurs' overseas investments
for the establishment of shopping malls and chain stores in which various consumer goods may beoffered for sale.
Letter of Guarantee Programme for Ship-building and Exporting
Under this programme, Turkish firms involved in ship-building 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 pre-financing either in advance or in instalments from the buyer.
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 voluntary.
Short Term Export Credit Insurance
Short Term Whole Turnover Export Credit Insurance Programme
Short Term Export Credit Insurance provides companies with one year blanket insurance
cover for exports purchased on short term credits.
Post-Shipment Export Credit Discount Programme
This is a short term credit facility where two of the leading Turkish commercial banks (with
whom Turk Eximbank reached an agreement) discount the export receivables related to shipments
covered under the Short Term Export Credit Insurance programme of Turk Eximbank.G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 12
Medium and Long Term Insurance Facilities
Specific Export Credit Insurance Programme
This is a single buyer insurance programme providing cover against political and commercial
risks for both the pre-shipment and post-shipment stages.
Specific Export Credit Insurance Post-shipment Political Risk Programme
This is a new single buyer insurance programme providing cover against political risks in the
post-shipment stage for receivables with credit terms of up to 5 years relating to the export of capitaland semi-capital goods.
Overseas Contractors' Services Insurance Programme
This 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 Programme
This 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.
2. Policy objective and/or purpose of the subsidy
Credit ProgrammesShort-term Export CreditsPre-shipment Turkish Lira Export Credit (PSEC TL) Programme
It 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
(a sub-programme of PSEC).  It aims to support SMSEs.
Priority Development Areas Credit facility
(a sub-programme of the PSEC).  It aims to help exporters in priority development
areas and ultimately eliminate the social and economic gaps which exist between these
regions and Turkey's more developed regions.
Pre-shipment Foreign Currency Export Credit Programme
Same as PSEC TL.
Foreign Trade Companies Credit Lines
This facility aims to assist large export trading companies in their export financing needs.G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 13
Performance Related Foreign Currency and Turkish Lira Export Credit Programmes
It aims to increase the competitiveness of exporters in international markets.
Short Term Export Credit Discount Programme
It aims to increase the competitiveness of Turkish exporters by allowing them to offer more
favourable payment terms to their customers.
Tourism Marketing Credit Programme
It aims to provide finance to tourism compan ies for their promotional marketing activities
abroad.
Medium and Long-Term Export Credits
Buyers Credit/Insurance/Guarantee Programme
It aims to enable foreign buyers to purchase Turkish goods and services on deferred payment
conditions.  Moreover, the Bank provides a risk free environment for Turkish contractors.
Islamic Development Bank (IDB) Longer Term Trade Financing Scheme
It aims to provide financing for all goods having at least 40 per cent domestic content
exported to member countries of the Organisation of Islamic Conference (OIC).
IDB Import Trade Financing Operations (ITFO Line)
It 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
It aims to support direct sales of Turkish brand goods to consumers in foreign markets.
Letter of Guarantee Programme for Ship-building and Exporting
It aims to provide export credit facilities to Turkish dockyards.
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 voluntary.
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.G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 14
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
It 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 of
1 to 5 years maturity.
Specific Export Credit Insurance Post-shipment Political Risk Programme
It aims to provide insurance cover against political risks in the post-shipment stage for
receivables with credit terms of up to 5 years relating to the export of capital and semi-capital goodswith at least 60 per cent domestic content.
Overseas Contractors' Services Insurance Programme
It aims to ensure Turkish contractors against losses arising from commercial and political
risks.
Overseas Investment Insurance Programme
It aims to provide cover against political risk s such as expropriation, war and restrictions on
remittances.
3. Background and authority for the subsidy
Turk 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 beeffected 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 Ba nk.  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.
4. Form of the subsidy
Short-term export credits
In the form of 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 loan.G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 15
Short, Medium and Long Term Insurance Facilities
In the form of export credit insurance.
5. To whom and how the subsidy is provided
Credit ProgrammesShort-term Export Credits
Pre-shipment Turkish Lira Export Credit (PSEC TL) Programme
Credits are extended to manufacturers, manufacturer-exporters and exporters and the interest
rate is determined by Turk Eximbank according to money market rates and loan repayment periods.
Small and Medium Scale Enterprises (SMSEs) Credit facility
Credits are 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
Credits are extended to companies located in Turk ey's priority development.  Interest rate is
slightly lower than PSEC interest rate.
Pre-shipment Foreign Currency Export Credit Programme
Credits are extended to manufacturers, manufacturer-exporters and exporters.  Interest rate is
LIBOR+spread or FIBOR+spread  and TIBOR for JPY credits.  Spread is determined by Turk
Eximbank.
Foreign Trade Companies Credit Lines
Credits are extended to Foreign Trade Corporate Companies (FTCC) and Sectoral Foreign
Companies (SFTC) and allocated on the basis of previous year's export performance.  Applicants mustbe 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
Credits are extended to manufacturers, manufacturer-exporters and exporters except FTCC
and SFTC.  The interest rate for FX option is sligh tly lower than 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 Turk Eximbank and in this way a post-shipment financing facility is provided for
Turkish exporters.  Export receivables with a maturity of up to 120 days are discounted on LIBOR.G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 16
Tourism Marketing Credit Programme
Credits are extended to tourism companies selected by the Ministry of Tourism and those that
attract more than $1 Million worth of foreign currency to Turkey annually.  The interest rate is 67 percent per annum.
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 parties concerned and also
according to the OECD Consensus.
Islamic Development Bank (IDB) Longer Term Trade Financing Scheme
Credits are extended to Turkish exporters who export goods having at least 40 per cent
domestic content to member countries of the OIC.  Mark-up is determined by the IDB within a margin
of 5.5-6 per cent per annum on disbursed loans.
IDB Import Trade Financing Operations (ITFO Line)
Credits are extended to Turkish importers for their imported 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
Credits are 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 ship-building 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 pre-financing
either in advance or in instalments from the buyer.  The commission rate is determined by Turk
Eximbank for each transaction.
Insurance programmes
Short-Term Export Credit Insurance
Short-Term Whole Turnover Export Credit Insurance Programme
All Turkish exporters are eligible for this pr ogramme.  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).G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 17
Post-Shipment Export Credit Discount Programme
Export receivables of Turkish exporters related to shipments covered under the Short-term
Export Credit Insurance Programme of Turk Eximba nk are discounted by commercial banks.  The
interest rate applied is LIBOR+spread.  Spread is determined by Turk 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 thebuyer (public/private).
Specific Export Credit Insurance Post-shipment Political Risk Programme
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 employer are eligible for thisprogramme.
Overseas Investment Insurance 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 Turk Eximbank programmes.  The programmes may be revised,
eliminated or new programmes are introduced according to the requirements of Turkish exporters and
international rules and regulations.G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 18
TURK EXIMBANK'S CREDITS
IN THE THREE MOST RECENT YEARS
Programmes 1994 1995 1996
PRE-SHIPMENT TURKISH LIRA EXPORT CREDIT
(TL Billion) (1)22,201 36,442 68,100
TARGET MARKET EXPORT CREDIT (TL Billion) (2) 3,214 3,026 -
PRE-SHIPMENT FOREIGN CURRENCY EXPORT
CREDIT ($ Million)570 1,392 1,361.2
SMSE EXPORT CREDIT (TL Billion) (3) 283 1,277 -
FTC SHORT-TERM FOREIGN CURRENCY CREDIT
($ Million)179.0 228.0 361.0
PERFORMANCE RELATED FX EXPORT CREDIT
($ Million) (4)44.7 149.2 282.5
FTC SHORT-TERM EXPORT CREDIT (TL Billion) 3,913 5,078 8,300
PRIORITY DEVELOPMENT AREAS EXPORT
CREDIT (TL Billion)- 950 -
IDB LONGER-TERM TRADE FINANCING SCHEME
($ Million)7.4 16.5 19.1
BUYERS CREDIT/INSURANCE/GUARANTEE
PROGRAMME ($ Million) (5)161.2 14.5 8.7
NOTES
(1) SMSE and Priority Development Areas credits became sub-programmes of Pre-Shipment
Export Credit Programme in 1996.
(2) Introduced in April 1993 and discontinued in January 1996.
(3) Introduced in May 1994.
(4) Introduced in August 1994.(5) Project credits extended under this programme are not included.
Average Exchange Rates:
1994: $1 = TL 29,704
1995: $1 = TL 45,7041996: $1 = TL 81,135G/SCM/N/16/TUR
G/SCM/N/25/TUR
Page 19
III. AGRICULTURE
Export Subsidy Programme for Agricultural Products (Notification year:  1995)
1. Title of the subsidy programme
The title of the subsidy programme is "export subsidy programme for agricultural products"
(Decision No. 95/12).  The export support rates for these agricultural products were announced in the
Official Gazette dated 29 September 1995 and were valid between 1 October and 31 December 1995.
2. Policy objective and/or purpose of the subsidy
The policy objective of the export subsidy programme for the agricultural products is to
develop Turkey's export potential and to channel excessive production in basic agricultural products
to the exports.
3. Background and authority of the subsidy
Authority for the subsidy is the Money-Cred it and Coordination Council.  The Council is
comprised of the Prime Minister, Ministers of State, the Minister of Finance, the Undersecretary for
State Planning Organization, the Undersecretary for Foreign Trade, the Undersecretary for Treasury
and the Head of the Central Bank.
4. Form of the subsidy
The form of the subsidy is cash grants.
5. To whom and how the subsidy is provided
These subsidies have been provided to the exporters of the specified products as a fixed
amount per ton in US dollars.G/SCM/N/16/TUR
G/SCM/N/25/TUR
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6. Subsidy per unit
The subsidy per product is given below.
Product Rate (in
US$/ton)Share of exported
quantity eligible to
receive the subsidyMax. rate in per
cent of the f.o.b.
price
Meat of poultry (exc. edible offal) 207 41% 10%
Sausages and similar products ofmeat, meat offal150 100% 5%
Prepared or preserved fish 80 100% 5%
Crustaceans and molluscs 100 100% 5%
Eggs $7/1,000 pieces 35% 7%
Cut flowers (fresh) 250 100% 10%
Vegetables, frozen (exc. potatoes) 78 57% 7%
Potatoes (frozen) 45 100% 10%
Vegetables (dehydrated) 109 46% 5%
Fruits (frozen) 50 100% 5%
Wheat flour 15 100% 10%
Semolina 15 100% 5%
Malt 20 100% 7%
Margarine 20 100% 5%
Macaroni, vermicelli 42 71% 7%
Chocolate and other food
preparations containing chocolate,biscuits, wafers99 35% 5%
Preserves, pastes, homogenized
fruit preparations (exc. shelledfruits)50 100% 7%
Fruit juices (exc. vegetable juices) 66 76% 7%
The second column specifies that the subsidy will only be paid on a determined percentage of
the quantity exported.  If predicted export quantity exceeds the quantity of the WTO Commitments of
Turkey in a product, "Quantity Threshold System" is used at the export subsidy programme.  Thissystem has been used owing to the quantity constraint of each subsidized products that was accepted
by the Turkish Government by signifying the WTO Agreement on Agriculture.
Another system in the export subsidy programme is the "Maximum Payment Rate".  Suppose
this rate is determined 20 per cent in a product, it means that export subsidy payment can not be more
than 20 per cent of product's f.o.b. price.  The purpose of this system is to prevent decreasing export
prices of agricultural products.
7. Duration
Duration of the subsidy was from 1 October to 31 December 1995.G/SCM/N/16/TUR
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8. Statistical data permitting an assessment of the trade effects of the subsidy.
No statistical data permitting an assessment of the trade effects of this subsidy is available.
Export Subsidy Programme for Agricultural Products (Notification year:  1996)
1. Title of the subsidy programme
The title of the subsidy programme is "export subsidy programme for agricultural products"
(Decision No. 96/1).  This programme was applied on ly for potatoes, tomatoes, onion, citrus fruit and
apple.  The export support rates for these agricultural products were announced in the Official Gazette
dated 19 February 1996 and were valid between 1 January and 31 December 1996.
2. Policy objective and/or purpose of the subsidy
The policy objective of the export subsidy programme for the agricultural products is to
develop Turkey's export potential and to channel excessive production in basic agricultural products
to the exports.
3. Background and authority of the subsidy
Authority for the subsidy is the Money-Cred it and Coordination Council.  The Council is
comprised of the prime Minister, Ministers of State, the Minister of Finance, the Undersecretary for
State Planning Organization, the Undersecretary for Foreign Trade, the Undersecretary for Treasuryand the Governor of the Central Bank.
4. Form of the subsidy
The form of the subsidy is cash grants or government bonds.  These subsidies have been
provided to the exporters of the specified products as a fixed amount per ton in US dollars.
5. Subsidy per unit
The subsidy per product is given below.
Product Rate (in US$/ton) Share of exported
quantity eligible to
receive the subsidyMax. rate in per cent
of the f.o.b. price
Potatoes 22 35% 20%
Tomatoes 19 99% 15%
Onion 25 100% 15%
Citrus fruit 35 100% 15%
Apple 50 100% 10%
6. Duration
Duration of the subsidy was from 1 January to 31 December 1996.G/SCM/N/16/TUR
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7. Statistical data permitting an assessment of the trade effects of the subsidy
Statistical data permitting an assessment of the trade effects of this subsidy is not available
yet.
Export Subsidy Programme for Agricultural Products (Notification year:  1997)
1. Title of the subsidy programme
The title of the subsidy programme is "export subsidy programme for agricultural products"
(Decision No. 97/1).  This programme is applie d only for potatoes, tomatoes, onion, citrus fruit and
apple.  The export support rates for these agricultural products were announced in the Official Gazette
dated 4 January 1997, which are valid since 1 January 1997.  This programme came into force
replacing the Decision No. 96/1.
2. Policy objective and/or purpose of the subsidy
The policy objective of the export subsidy programme for the agricultural products is to
develop Turkey's export potential and to channel excessive production in basic agricultural productsto the exports.
3. Background and authority of the subsidy
Authority for the subsidy is the Money-Cred it and Coordination Council.  The Council is
comprised of the Prime Minister, Ministers of State, the Minister of Finance, the Undersecretary for
State Planning Organization, the Undersecretary for Foreign Trade, the Undersecretary for Treasury
and the Governor of the Central Bank.
4. Form of the subsidy
The form of the subsidy is cash grants or government bonds.  These subsidies are provided to
the exporters of these products as a fixed amount per ton in US dollars.
5. Subsidy per unit
The subsidy per product is given below.
Product Rate (in US$/ton) Share of exported
quantity eligible to
receive the subsidyMax. rate in per cent
of the f.o.b. price
Potatoes 21 31% 20%
Tomatoes 18 99% 15%
Onion 21 100% 15%
Citrus fruit 34 67% 15%
Apple 50 100% 10%G/SCM/N/16/TUR
G/SCM/N/25/TUR
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6. Statistical data permitting an assessment of the trade effects of the subsidy
Statistical data permitting an assessment of the trade effects of this subsidy is not available
yet.
Export Subsidy Programme for Agricultural Products
1. Title of the subsidy programme
The title of the subsidy programme is "export subsidy programme for agricultural products"
(Decision No. 97/2).  This programme is applied for processed agricultural products.  The exportsubsidy rates for these agricultural products were published in the Official Gazette dated
26 March 1997, and are valid since 1 January 1997.
2. Policy objective and/or purpose of the subsidy
The policy objective of this export subsidy programme is to develop Turkey's export potential
in processed agricultural products.
3. Background and authority of the subsidy
Authority for the subsidy is the Money-Cred it and Coordination Council.  The Council is
comprised of the Prime Minister, Ministers of State, the Minister of Finance, the Undersecretary for
State Planning Organization, the Undersecretary for Foreign Trade, the Undersecretary for Treasury
and the Governor of the Central Bank.
4. Form of the subsidy
The subsidies are given to the producer/exporters or exporters by deducting their debts (taxes,
social insurance premium costs, energy costs, te lecommunication costs) to the public corporations
from the subsidy amounts they acquire.
5. Subsidy per unit
The subsidy per product is given below.
Product Rate (in
US$/ton)Share of exported
quantity eligible to
receive the subsidyMax. rate in per
cent of the f.o.b.
price
Cut flowers (fresh) 310 64% 20%
Vegetables, frozen (exc. potatoes) 110 52% 20%
Vegetables (dehydrated) 375 22% 10%
Fruits (frozen) 96 99% 20%
Preserves, pastes 55 85% 20%
Homogenized fruit preparations 54 61% 20%
Fruit juices (concentrated) 172 38% 20%
Olive oil 110 100% 10%G/SCM/N/16/TUR
G/SCM/N/25/TUR
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6. Statistical date permitting an assessment of the trade effects of the subsidy
Statistical data permitting an assessment of the trade effects of this subsidy is not available
yet.
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