G/SCM/N/284/TUR  
 
18 September 2015  
(15-4782)  Page: 1/23  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES 
TURKEY 
The following notification, dated 26 August 2015,  is being circulated at the request of the 
Delegation of Turkey . 
 
_______________ 
 
 
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
 Investment Incentive Program.
1 
 
2. Period covered by the notification. The period to be covered by the notification should be the 
most recently completed calendar or fiscal year. In the latter case, the start and end dates of the 
fiscal year should be specified 
 
This notification relates to the incentives provided during the period 2013 and 2014. 
 3. Policy objective and/or purpose of the subsidy 
 The Program aims to steer savings into high value added investments, to boost production and employment, to encourage large scale and strategic investments with high R&D content for 
increased international competitiveness, to increase foreign direct investments, to reduce regional 
development disparities and to promote investments for clustering and environment protection for the production and export-oriented growth stra tegy in line with the projected targets in 
Development Plans and Annual Programs as well as international agreements. 
 
4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
 Investment Incentive Program which is designed and implemented by the Ministry of Economy are 
based on the provisions of Council of Ministers Decrees and related Communiqués. 
 
The "Decree No: 2012/3305 on State Incentives for Investments"
2 has been adopted to replace the 
"Decree No: 2009/15199 on State Incentives for Investments".3 The Communiqué No. 2012/1 
defines procedures and principles for the implementation of the Decree No: 2012/3305. 
 
                                               
1 Turkey's Investment In centive Program entered in to force by the Council of Minister's Decree 
No. 2012/3305 dated June 15th, 2012 and has been in force for the time period starting from Jan 1st, 2012 . 
2 Decree No: 2009/3305, dated 15 June 2012, published on the Official Gazette dated 19 June 2012 and 
No: 28328.   
3 Decree No: 2009/15199, dated 14 July 2009, published on the Official Gazette dated 16 July 2009 and 
No: 27290.  G/SCM/N/284/TUR 
 
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  5. Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
 
Investors apply to the Ministry of Economy with the related documents including investment feasibility studies and proposals. After the evaluati on to be made by the Ministry on the basis of 
macro-economic programs, supply vs. demand conditions and sectoral, financial and technical 
terms, eligible investment projects are granted an Investment Incentive Certificate which enables to benefit from the incentive measures enlisted on it. 
 
Investments are supported through 4 different incentive schemes and 9 different incentive measures designed within the scope of the new program. Contributions provided to investors through incentive measures depend on the characteristics of the investment and applicable 
schemes. The incentive schemes and related support measures are as following; 
 I. General Investment Incentive Scheme 
 
i. Customs duty exemption 
ii. VAT exemption 
iii. Income Tax Withholding Support (Only for Region 6) 
 II. Regional Investment Incentive Scheme  
i. Customs duty exemption 
ii. VAT exemption 
iii. Tax deduction 
iv. Social security premium support - Employer's share 
v. Interest support (For Region 3, 4, 5 and 6) 
vi. Land allocation 
vii. Social security premium support -Employee's share (Only for Region 6) 
viii. Income Tax Withholding Support (Only for Region 6) 
 III. Large Scale Investment Incentive Scheme 
 
i. Customs duty exemption 
ii. VAT exemption 
iii. Tax deduction 
iv. Social security premium support - Employer's share 
v. Land allocation 
vi. Social security premium support -Employee's share (Only for Region 6) 
vii. Income Tax Withholding Support (Only for Region 6) 
 IV. Strategic Investment Incentive Scheme 
 
i. Customs duty exemption 
ii. VAT exemption 
iii. Tax deduction 
iv. Social security premium support - Employer's share 
v. Interest support (For Region 3,4,5 and 6) 
vi. Land allocation 
vii. VAT Refund 
viii. Social security premium support -Employee's share (Only for Region 6) 
ix. Income Tax Withholding Support (Only for Region 6) 
 
Regional Investment Incentive Scheme aims to eliminate inter-regional imbalances by supporting the industries through incentives in each province based on the competitive potential and 
economic scale of that specific province. The Large Scale Investment Incentive Scheme supports 
investment projects of different sizes in 12 industries/fields with a minimum fixed investment amount of 50 million TL through of incentive measures changing according to regions. The 
Strategic Investment Incentive Scheme supports in vestment projects in all provinces of Turkey 
regardless of the region to increase the manufacturing of products with high import dependency. 
Investment subjects not incentivized by the Regional, Large Scale or Strategic Schemes can benefit from supports granted by the General Investment Incentive Scheme. Some of the G/SCM/N/284/TUR 
 
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  investment subjects are not supported or conditionally supported by the program because of 
international agreements or surplus capacity.   6. To whom and how the subsidy is provided (whether to producers, to exporters, or others; 
through what mechanism; whether a fixed or fluctuating amount per unit; if the latter, how 
determined) 
 
Investment activities related to the production of goods and services, research and development 
(R&D) and environmental protection can benefit from the incentive measures provided in consideration of the international commitments, regional and sectoral restrictions determined in the Decree. Both domestic and foreign investors can benefit from the measures under equal terms 
and conditions. The measures offered under the Program are not directly related to trade.  
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year). Where provision of per unit subs idy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation 
 
Per unit subsidy information is not available due to the characteristics of the support measures. The explanation about support measures are as following:   
a. Exemption from Customs Duties 
 
For the investment projects which are granted Investment Incentives Certificate by the Ministry of 
Economy, imports of the machinery and equipment to  be used in the production process shall be 
subject to Customs Duty exemption.  
b. Value Added Tax Exemption  
 Pursuant to the Law No:3065 and date: 25 October 1984, imports and domestic purchases of machinery and equipment within the scope of the investment Incentives certificate are exempted 
from the Value Added Tax. 
 
c. Tax Deduction 
 
Reduced income or corporate tax rates will be imposed on the investor's income under the incentive scheme according to the characteristic of the investment until the amount calculated on 
the basis of government's contribution rate, dete rmined by the same scheme and corresponding to 
a certain percentage of the fixed investment amount is reached.  The contribution rate to investment refers to the rate of the fixed investment subject to tax 
deduction, whereas tax deduction refers to the rate of income or corporate tax to be reduced until 
the contribution rate is reached.  
d. Interest Support 
 This support will be available for investment loans, borrowed to finance the investment, with a 
maturity of at least one year for Regional Investments (Region 3, 4, 5 and 6), Strategic 
Investments, R&D and Environment Investments. The Ministry will cover a specific portion of the interest/profit share of the loans that do not exceed 70% of the fixed investment amount registered on the certificate for a specific period which would not exceed 5 years.  
 
e. Social Security Premium Support (Employer's Share) 
 
For any additional employment created by an investment with an incentive certificate under 
Regional, Large Scale and Strategic Investment Incentive Schemes, the amount corresponding to the employer's share of the social security prem ium on legal minimum wage, paid by the investor, 
is covered by the Ministry. In order for an investor to benefit from this support, the project should 
be concluded and a completion visa should be granted.  G/SCM/N/284/TUR 
 
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  f. Land allocation 
 Government land will be allocated for rent for investments with incentive certificate under large scale, strategic and regional incentive schemes in accordance with the rules and principles defined 
by the Ministry of Finance, depending on the availability of such land in the provinces where 
investments are made.   
g. VAT Refund 
 VAT collected on the building & construction expenses made for Strategic Investments will be rebated provided that the fixed investment amount is over 500 million TL. 
 
h. Social security premium support -E mployee's share (Only for Region 6) 
 
The employee's share of the social security premiu m paid by the investor to the Social Security 
Institution in the amount corresponding to the legal minimum wage, for additional personnel recruited for the investments in Region 6 is covered for 10 years. 
 
i. Income Tax Withholding Support (Only for Region 6) 
 The withholding tax imposed on the income tax of employees will not be levied for new staff 
employed for the investments made in Region 6 for 10 years. 
 8. For the information cited in items 3 to 7 above, the notification does not necessarily have to 
have an independent heading corresponding to  each item, and may provide information on 
multiple items in one heading (e.g. provide information on items 3 and 4 under one heading). In 
this case, the notification must clearly specify what items are covered by which heading 
 
-  9. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement 
 Investment Incentive Program is based on the provisions of Council of Ministers Decrees. The 
current Decree which has been in force since 1 January 2012 will be in force until the Council of 
Ministers decision for changing it.   
10. Statistical data permitting an assessment of the trade effects of the subsidy. The specific 
nature and scope of such statistics is left to th e judgement of the notifying Member. To the extent 
possible, relevant and/or determinable, however, it is desirable that such information include 
statistics of production, consumption, imports and exports of the subsidized product(s) or 
sector(s): 
 
(a) for the three most recent years for which statistics are available; 
 
(b) for a previous representative year, which, where possible and meaningful, should be the latest year preceding the introduction of the subsidy or preceding the last major change in the 
subsidy.  
 The available statistics about the incentive certificates are provided in Table1 including the previous years of notification.  
 G/SCM/N/284/TUR 
 
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  Table 1: Number of Incentive Certificates issued under each scheme* 
 
General 
Investment 
Incentive 
Scheme Regional 
Investment 
Incentive 
Scheme Large Scale 
Investment 
Incentive 
Scheme Strategic 
Investment 
Incentive 
Scheme TOTAL 
2011 2.768 1.440 5  4.213 
2012 2.163 2.055 14 2 4.234 
2013 1.982 2.898 16 10 4.906 
2014 1.724 2.312 16 3 4.055 
* As of February 2015. G/SCM/N/284/TUR 
 
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  EXPORT SUBSIDY PROGRAMME FOR AGRICULTURAL PRODUCTS (2014) 
1. Title of the subsidy programme 
 
The title of the subsidy programme is "Export Subsidy Programme for Agricultural Products" 
(Decree No:2014/6). 
 2. Period covered by the notification 
 The Decree 2014/6 of the Money-Credit and Coor dination Council has been applied between 
1 January and 31 December 2014. This programme came into force replacing the Decree 2013/4.  
3. 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. 
 4. Background and authority of the subsidy 
 Authority for the subsidy is the Money-Credit and Coordination Council, which is comprised of the Deputy Prime Minister, Minister of Development, Minister of Economy, Minister of Customs and 
Trade, Minister of Finance and the Head of  Central Bank of the Republic of Turkey. 
 
5. Form of the subsidy 
 
The subsidies are provided in the form of deduction of debts to the public corporations (taxes, 
social insurance premium costs, energy costs, telecommunication costs) from the subsidy entitlement. 
 
6. To whom and how the subsidy is provided 
 The subsidies are provided to producer/exporters or exporters in the form of deduction of their 
debts to the public corporations from their subsid y entitlement which is calculated on the basis of 
fixed amount per unit.  
7. Subsidy per unit 
 
The subsidy per product is given below. 
PRODUCT 
 RATE 
(TL/TON) SHARE OF EXPORTED 
QUANTITY ELIGIBLE 
TO RECEIVE THE 
SUBSIDY MAXIMUM RATIO OF 
PAYMENT 
Cut flowers (fresh)  370 40% 10% 
Vegetables, frozen (exc. potatoes)  145 45% 12% 
Vegetables 
(dehydrated)  670 40% 10% 
Fruits (frozen)  140 45% 8% 
Preserves, pastes  135 100% 8% 
Honey  120 32% 5% 
Homogenized fruit 
preparations  115 35% 5% 
Fruit juices 
(concentrated)  270 15% 12% 
Olive oil  50 100% 2% 
Prepared or preserved 
fish  450 100% 5% 
Meat of poultry (excl. 
edible offals)  350 41% 15% 
Eggs  30/1000 pieces 65% 10% 
Preserved poultry meat 
products  450 50% 10% 
Chocolate and other 215 48% 6% G/SCM/N/284/TUR 
 
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  PRODUCT 
 RATE 
(TL/TON) SHARE OF EXPORTED 
QUANTITY ELIGIBLE 
TO RECEIVE THE 
SUBSIDY MAXIMUM RATIO OF 
PAYMENT 
food preparations containing chocolate  
Biscuits, waffles  215 18% 8% 
Macaroni vermicelli  120 32% 10% 
 
The second column specifies that the subsidy will only be paid on determined percentage of the 
quantity exported and the third column specifie s the maximum payment rate of the value of the 
exports. This system has been used owing to  the annual volume and value commitments of 
Turkey, originated in the WTO Agreement on Agriculture. 
 8. Duration of the subsidy 
 
The Decree 2014/6 of the Money-Credit and Coor dination Council has been applied between 
1 January and 31 December 2014.  
9. 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 (2015) 
1. Title of the subsidy programme 
 
The title of the subsidy programme is "Export Subsidy Programme for Agricultural Products" 
(Decree No:2015/1).  
2. Period covered by the notification 
 
The Decree 2015/1 of the Money-Credit and Coor dination Council has been applied between 
1 January and 31 December 2015. This programme came into force replacing the Decree 2014/6. 
 3. 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.  
4. Background and authority of the subsidy 
 
Authority for the subsidy is the Money-Credit and Coordination Council, which is comprised of the 
Deputy Prime Minister, Minister of Development, Minister of Economy, Minister of Customs and 
Trade, Minister of Finance and the Head of  Central Bank of the Republic of Turkey. 
 5. Form of the subsidy 
 The subsidies are provided in the form of deduction of debts to the public corporations (taxes, social insurance premium costs, energy costs, telecommunication costs) from the subsidy 
entitlement. 
 6. To whom and how the subsidy is provided 
 The subsidies are provided to producer/exporters or exporters in the form of deduction of their 
debts to the public corporations from their subsid y entitlement which is calculated on the basis of 
fixed amount per unit. 
 G/SCM/N/284/TUR 
 
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  7. Subsidy per unit 
 
The subsidy per product is given below. 
PRODUCT RATE 
 
(TL/TON) 
 SHARE OF EXPORTED 
QUANTITY ELIGIBLE 
TO RECEIVE THE 
SUBSIDY MAXIMUM RATIO OF 
PAYMENT 
Cut flowers (fresh)  370  40%  9%  
Vegetables, frozen (exc. potatoes)  145  45%  10%  
Vegetables (dehydrated)  670  40%  10%  
Fruits (frozen)  140  45%  6%  
Preserves, pastes  150  100%  8%  
Honey  120  32%  2%  
Homogenized fruit 
preparations  115  35%  5%  
Fruit juices 
(concentrated)  295  15%  12%  
Olive oil  30  100%  2%  
Prepared or preserved 
fish  450  100%  5%  
Meat of poultry (excl. 
edible offals)  350  41%  14%  
Eggs  30/1000 pieces  65%  10%  
Preserved poultry meat 
products  450  50%  10%  
Chocolate and other food 
preparations containing chocolate  215  48%  5%  
Biscuits, waffles  215  18%  7%  
Macaroni vermicelli  120  32%  9%  
 
The second column specifies that the subsidy will only be paid on determined percentage of the 
quantity exported and the third column specifie s the maximum payment rate of the value of the 
exports. This system has been used owing to  the annual volume and value commitments of 
Turkey, originated in the WTO Agreement on Agriculture.  8. Duration of the subsidy 
 The Decree 2015/1 of the Money-Credit and Coor dination Council has been applied between 
1 January and 31 December 2015. 
 
9. 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. 
  G/SCM/N/284/TUR 
 
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  TURK EXIMBANK'S PROGRAMMES 
a. Turk Eximbank in Brief 
Turk Eximbank, which was established in 1987, is the sole official export credit agency in Turkey. 
As a wholly state-owned bank, acting as the gove rnment's major export incentive instrument in 
Turkey's sustainable export strategy, the Bank maintains close co-operation with the related 
entities of the government. Turk Eximbank's policie s and operations have been formulated to work 
within the framework of the export-led growth strategies pursued by all Turkish governments 
since 1980. The Bank operates in the framework of the Banking Law and the regulations of the 
Banking Regulation and Supe rvision Agency of Turkey. 
 Turk Eximbank is under the responsibility of the Prime Ministry or such other Ministry which the 
Bank will be affiliated. Legislation of Turk Exim bank had been changed in line with the new Turkish 
Commercial Code and the General Assembly of the Bank was established. Thereon, the Undersecretariat of Treasury represents the General Assembly. 
 
Turk Eximbank has one regional directorate, one br anch and nine liaison offices with a total staff 
of 524 as of end-2014. 
 
b. The Bank's Financial Structure and Support to the Export Sector 
The Bank's main sources of funds are direct fund ing from the Treasury through capital injections 
as well as through borrowing from commercial banks and international financial markets. 
 
Turk Eximbank's financial resources are:   
 1. Capital injections 
 2. Domestic banks  3. International syndication loans 
 4. Bilateral loans from international banks 
 5. International bond issues  6. International financial institutions such as EDC, JBIC, IBRD, ITFC,etc.  
The Turkish Treasury makes capital contributions to  Turk Eximbank as the sole shareholder of the 
Bank. These contributions are used to support Turk Eximbank's activities and to maintain the Bank's capital adequacy. In addition, losses incurre d by Turk Eximbank in its credit, insurance and 
guarantee transactions as a result of political risks are covered by Turkish Treasury, like in all the 
other officially supported Export Credit Agencies (ECAs).   
The nominal capital of Turk Eximbank increased to TL 2,4 billion in April 2014 and the paid-in 
capital was fully paid as of April 2014. If requeste d, the Turkish Treasury supports Turk Eximbank 
in its funding efforts by guaranteeing the Bank's borrowings abroad. As of end-2014, 13% of the Bank's assets are capital stock. This ratio indicates that Turk Eximbank, like all other ECAs in the 
world, funds her activities mainly from domestic and international sources rather than capital 
injections. Hence the Bank always reflects the cost  of funding to the rates she charged in order to 
secure a sound financial structure.  
 
 In this context, Turk Eximbank gives importance:   
 1. To be financially sustainable, 
 2. To help increase Turkish merchandise and project exports,  3. To independently assume a broader range of risk,  4. To be a catalyst for other financial institutions to support Turkish exports. 
 
Turk Eximbank's identification of financial sustainability as a primary objective is driven mostly by its current and future international obligations to the OECD, WTO and the EU, in which ECAs are 
expected to at least break-even over time and eliminate all trade subsidy programmes. 
Management believes that it is critical to operate within sound commercial guidelines. Additionally, as Turk Eximbank borrows from international financial markets regularly and its financial 
soundness affects its borrowing costs, a sound financial structure gains more importance. In this 
context, it is very important to implement effective strategies and procedures to control credit risk, G/SCM/N/284/TUR 
 
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  liquidity risk, and asset/liability risk. Besides, Turk  Eximbank requests credit ratings from Standard 
& Poor's, Moody's and Fitch regularly each year in order to tap the international money and capital markets regularly on its own, without the guar antee of the Treasury. The Bank's management 
believes that credit ratings provide wider access to capital markets and as such reduce the cost of 
borrowing.  
 Using these sources, during 2012-2014 period Tu rk Eximbank provided, on the average, a total 
support of US$27.1 billion to the export sector, a nnually, through export credit, credit insurance 
and guarantee programmes, as described below. To date, given the economic condition prevailing in Turkey, Turk Eximbank has inevitably concentrat ed on short-term trade financing. As a medium 
term strategy, the Bank, like most other ECAs in developed countries, plans to change its direction 
of activities gradually not only from short term to medium and long term programmes, but also 
from cash loans to non-cash loans and guarantees thus providing more room for Turkish commercial banks in short-term trade financing to Turkish exporters. In line with this aim and 
considering the fact that Turk Eximbank is one of the export-related institutions which will play an 
active role for Turkey to reach US$ 500 billion worth of exports in year-2023, the Bank's new vision was determined in April 2010. Under this  vision, Turk Eximbank will concentrate on 
guarantee and insurance programmes and medium and long-term buyers' credit in the 
forthcoming period.   Turk Eximbank provided a total export financing support of US$ 31.1 billion in terms of financing 
support and pure cover, which accounted for 19.7% of Turkey's exports in 2014.  
 
c. Turk Eximbank's International Obligations 
While implementing its programmes and forming strategies, Turk Eximbank is committed to 
conforming to the internationally accepted ru les and regulations set by the WTO, the OECD 
Consensus, the EU and the Berne Union. In 1994,  Turk Eximbank became a full member of the 
Berne Union, an international association of export credit and investment insurers, and has been 
representing Turkey in the Export Credits and Cr edit Guarantees Group (ECG) of the OECD Trade 
Committee since 1998, when Turkey became a full me mber of the Group. Turkey also became an 
observer member of the Participants' Group (PG) of the OECD at the end of 2006; Turk Eximbank 
has been representing Turkey in this Group si nce then. The Bank makes regular reporting and 
notifications to the Berne Union, the ECG, the PG and the WTO.  
 
As part of its obligations under the Customs Union Decision, Turkey has harmonized its legislation 
with that of the EU with respect to officially su pported export credits. Within this framework, the 
OECD Consensus principles on officially supported export credits with a repayment term of two or 
more years have been adopted on 23 January 1996; the Undersecretariat of Foreign Trade issued 
a Communiqué (Export 96/12) in the Official Gazette (no: 22532) and Turk Eximbank is in charge of the execution of this Communiqué whose guidelines  are in parallel to the principles of the OECD 
Consensus. Additionally, since Turkey is a full me mber of the ECG and an observer member of the 
PG, she complies with the Arrangement on Officially  Supported Export Credits. Turk Eximbank has 
been spending efforts to achieve a harmonization of conditions and thus a level playing field among ECAs at European and OECD level. Hence, the Bank joins regular meetings of the ECG and 
PG and closely monitors the developments in the Groups. Besides, she complies with the reporting 
requirements of the Creditor Reporting System (CRS ) of the ECG; also provides the details of the 
level of officially supported export credits activi ty on a six monthly basis. Additionally, the Bank 
completes the biannual cash flow questionnaire and  updates her chapter in the Yellow Book of the 
OECD, which explains the Export Credit Financ ing Systems in OECD Member and Non-member 
Countries. Various reporting are made and questi onnaires are filled under such subjects as 
"environment" and "bribery in international transactions". After Turkey's observer membership to 
the PG, the Bank has also begun to carry out "payment experience reporting" and "premium 
feedback tools".   
Turk Eximbank has to act in conformity with international rules and regulations as well as sound 
underwriting principles. As a full member of Berne Union since 1994, she has already adopted guiding principles set by the Union and sends pe riodic reports, regarding insurance and lending 
activities, non-payment situations, the terms of cover offered and commitments/offers available, 
to the Union.   G/SCM/N/284/TUR 
 
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  Turk Eximbank is also bound by  the Agreement on Subsidies and Countervailing Measures of the 
WTO. As is known, in this Agreement, export subsidies including those illustrated in Annex I are prohibited subsidies. Item (k) of this Annex states that export credits at rates below government's cost of funds are prohibited subsidies. Item (j) of  the Annex states that export credit guarantee or 
insurance programmes at premium rates inadequate to cover long-term operating costs and losses 
of programme are prohibited subsidies.   
1. Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy 
 
 CREDIT PROGRAMMES 
  1. Short-term Export Credits  
i. Credits Extended via Commercial Banks 
  Pre-shipment Export Credit (PSEC) Programme. 
  PSEC-Priority Investment Areas Export Credit Programme. 
  Free Trade Zone Pre-shipment Foreign Currency Export Credit Programme.  
 
ii. Credits Extended Directly by Turk Eximbank 
  Foreign Trade Companies (FTC) Short-term Export Credit Programme.  
  Pre-export Credit Programme.  
  Free Trade Zone Pre-export Foreign Currency Export Credit Programme.   Pre-export Credit Programme for Small and Medium Scale Enterprises (SMEs).  
 
iii. Credits provided using the sources of the Central Bank of Turkey 
  Post-Shipment Rediscount Credit Programme. 
  Rediscount Credit Programme. 
  2. Medium-Term Export Credits (Project Credits)  
  The Export Oriented Working Capital Credit Programme. 
  The Export Oriented Investment Credit Programme.    Overseas Chain Stores In vestment Credit Programme. 
  Ship-Building Finance and Guarantee Programme. 
  Letter of Guarantee Programme fo r Overseas Contractors' Services. 
  Specific Export Credit Programme.  
  Bridge Credit Programme for Overseas Contractor Services. 
  Trademark Credit Programme.   3. Credits for Foreign Currency Earning Services 
 
  Tourism Credit Programme.   International Transportation Marketing Credit Programme. 
  Credit Programme for Participating to Overseas Trade Fairs. 
  Credit Programme for Foreign Currency Earning Services.  
 4. Export Finance Intermediation Loan (EFIL – IV) 
  5. The European Investment Bank Credit Programme  
 6. Buyers' Credit and Guarantee Programme 
  INSURANCE PROGRAMMES 
  7. Short-term Credit Insurance  
  Short-term Export Credit Insurance Programme.  
  Short-term Domestic Credit Insurance Programme. G/SCM/N/284/TUR 
 
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 8. Medium and Long-term Insurance Facilities    Specific Export Credit Insurance Post Shipment Risk Programme. 
 
 9. Insurance Programme for Unfair Calling of Bonds  
 10. Political Risk Insurance Programme for Overseas Contracting Services 
 2. Period covered by the notification. The period to be covered by the notification should be the 
most recently completed calendar or fiscal year. In the latter case, the start and end dates of the 
fiscal year should be specified 
 
1 January 2014 - 31 December 2014. 
 
3. Policy objective and/or purpose of the subsidy 
 
1. Short-term Export Credits 
 Turk Eximbank extends short-term export credits to manufacturers, exporters and export-oriented manufacturers to meet their financing needs especially at the pre-shipment stage. These credits 
are extended in Turkish Lira or in foreign curre ncy either directly by Turk Eximbank or via 
intermediation of selected Turkish commercial ba nks. In 2014, 13.6% of the short-term credits 
offered by Turk Eximbank was extended via intermediary Turkish commercial banks which are 
allocated credit lines and 86.4% of the short-term credits was extended directly by Turk 
Eximbank. Additionally, 21% of the total credits were provided in TL and 79% in foreign currency. The Bank has financially supported 19.7% of Turkey's exports by her short-term credits in 2014.  
 
i. Credits Extended via Commercial Banks 
Pre-shipment Export Credit (PSEC) Programme ; a short-term credit facility provided to 
manufacturers, export-oriented manufacturers and exporters starting from the early stages of 
production in all sectors. The aim of the programme is to meet the financing needs of these 
companies in the early stages of production. The programme has TL and foreign currency credit options.  
 
PSEC-Priority Investment Areas Export Credit Programme ; a sub-programme of the PSEC 
extended in TL to companies located in Turkey's priority development areas. It aims to support 
manufacturers, export-oriented manufacturers and exporters except Foreign Trade Companies in 
these regions and eliminate the economic-socia l gaps that exist between these regions and 
Turkey's more developed regions.   
Free Trade Zone Pre-shipment Foreign Currency Export Credit Programme ; another sub-
programme of the PSEC extended in FX to comp anies having operating license for manufacturing 
and located in Turkey's free trade zone areas. This facility aims to provide financial support to 
increase sales of manufacturers and export-oriented manufacturers in these regions. 
 Pre-shipment Export Credit Programme via Participation Banks ; a recently developed sub-
programme of the PSEC extended in FX to ma nufacturers, export-oriented manufacturers and 
exporters starting from the early stages of production in all sectors. The aim of the programme is to meet the financing needs of these companies in the early stages of production.  
ii. Credits Extended Directly by Turk Eximbank 
Foreign Trade Companies (FTC) Short-term Export Credit Programme ; extended to all companies 
entitled to foreign trade corporate company/se ctoral foreign trade company status, which is 
conferred by the Ministry of Economy. It aims to provide financial support to large export trading 
companies for their export financing needs. The credit has TL and foreign currency options.   
Pre-export Credit Programme ; a short-term credit facility provided to export-oriented 
manufacturers, manufacturer-exporters and exporters in the preparatory stage of exports. It aims G/SCM/N/284/TUR 
 
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  to increase the competitiveness of exporters in international markets and support export projects 
in the preparatory stage. The credit has TL and foreign currency options.   Free Trade Zone Pre-export Foreign Currency Export Credit Programme ; a sub-programme of the 
Pre-export Credit Programme extended in FX to companies having operating license for 
manufacturing and located in Turkey's free trade zone areas. This facility aims to provide financial support to increase sales of manufacturers and export-oriented manufacturers in these regions.  
 
Pre-export Credit Programme for Small and Medium Scale Enterprises (SMEs) ; a short-term credit 
facility extended both in TL and FX to only small and medium scale enterprises. It aims to provide financial support to SMEs in the preparatory stage of their exports.  
 
iii. Credits provided using the sources of the Central Bank of Turkey 
Post Shipment Rediscount Credit Programme ; a post-shipment finance facility in which deferred 
export receivables subject to bankers' acceptances and/or irrevocable letters of credit with a 
payment confirmation by a domestic bank and de ferred export receivables performed within Turk 
Eximbank Short-term Export Credit Insurance are discounted by Turk Eximbank. The programme 
aims to increase the competitiveness of Turkish exporters in international markets by enabling 
them to sell Turkish goods on deferred paymen t terms and eliminating overseas risks thereby 
encouraging them to enter into new and target markets.   
Rediscount Credit Programme ; a pre-shipment finance facility implemented within the framework 
of an additional limit to the post-shipment discount limit extended to Turk Eximbank by the Central Bank of Turkey. The programme which requires an  export commitment, aims to support Turkish 
manufacturers, exporters and manufacturer-exporter s on pre-shipment basis. The opportunity for 
the companies to benefit from affordable export rediscount credit has been provided at the post-
shipment stage provided that the bills transferred to factoring companies against export 
receivables and disbursed to Turk Eximbank. 
  2. Medium-Long Term Export Credits (Project Credits) 
 
Medium-long term export credits are specific cred it programmes, available for export transactions 
that cannot be covered under the short-term credit and guarantee programmes.  
The Export Oriented Working Capital Credit Programme;  aims at financing raw materials, 
intermediate goods and other financial needs of companies. Manufacturers and manufacturer-
exporter firms which are established in Turkey an d producing export oriented Turkish products are 
eligible to apply for this credit programme. Purchasing of raw materials and intermediate goods 
are financed based on the related expense bills.  The Export Oriented Investment Credit Programme;  aims to finance the machinery, equipment and 
other investment materials of the manufacturers and manufacturer-exporter firms which are 
established in Turkey and producing export orient ed goods. The capital goods such as machinery, 
equipment and other investment materials are financed in return for the related expense bills.  
 
Overseas Chain Stores Investment Credit Programme ; aims to support direct sales of Turkish 
brand consumer goods in international markets and establish Turkish brand names and promote 
Turkish designed goods abroad. Turk Eximbank supports the overseas investments of Turkish 
entrepreneurs for the establishment of shopping malls and chain stores in which various consumer goods may be offered for sale.  
Ship-Building Finance and Guarantee Programme ; aims to support Turkish dockyards in order to 
increase their shares and competitiveness in international markets. Turkish companies involved in shipbuilding and/or exporting of ships are provided direct loans and/or letters of guarantee so that 
they may obtain pre-financing either in advance or in instalments from the buyer or they can buy 
supplies & materials with payments having a fixed term.   
Letter of Guarantee Programme for Overseas Contractors' Services ; aims to enable Turkish 
contractors to sustain their current share in international markets and encourage them to enter into new markets. Turk Eximbank supports Turk ish contractors by providing them letter of G/SCM/N/284/TUR 
 
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  guarantee which bears the counter-guarantee of Turkish commercial banks, for their overseas 
projects.   Specific Export Credit Programme ; is used to evaluate credit demands that cannot be met within 
t h e  B a n k ' s  e x i s t i n g  s t a n d a r d  c r e d i t  p r o g r a m m e s .  I t  i s  a  short and medium-term pre-shipment 
financing facility provided to manufacturers/exporters and overseas contractors for projects that generate foreign currency. It aims to meet the specific requirements of Turkish 
manufacturers/exporters through medium-term financing and thus encourage the export of new 
products to new markets.   Bridge Credit Programme for Overseas Contractor Services; has been put into effect in 2009 in 
order to minimize the effects of the financial crises in the international markets on Turkish 
construction sector and to ensure the stability of the investments and their competitive capacity in this market by keeping existent construction site and mobilization-engine park in function.   
 
Trademark Credit Programme;  has been put into effect to allow differentiation in product design 
and branding, and to use advanced technology of high quality manufacturing in order to create a 
good image for Turkish products in international markets. 
  3. Credits for Foreign Currency Earning Services 
 
Tourism Credit Programme ; a short-term financing facility provided to Turkish travel agencies, 
airline companies and tourism enterprises for their promotion and marketing activities abroad and thus contribute to Turkey's balance of payments via increasing tourism revenues.  
 
International Transportation Marketing Credit Programme ; a short-term financing facility provided 
to international transportation companies to increase their competitiveness and at the same time 
to reduce the cost of exporter companies. The pr ogramme aims to contribute to Turkey's foreign 
exchange earnings.   Credit  Programme for Participating to Overseas Trade Fairs; a facility provided to companies to 
increase their market shares by attending foreign fairs, enter new/target markets, obtain 
information about new technologies and products, and contribute to development of exports.  
 
Credit Programme for Foreign Currency Earning Services ; a financing facility provided to 
companies residing in Turkey for both their foreign currency earning services abroad and export services like software projects, consultancy services, etc. The programme aims to contribute to 
Turkey's foreign exchange earnings.  
  4. Export Finance Intermediation Loan Agreement (EFIL-IV)  
 
An Export Finance Intermediation Loan Agreement (EFIL-IV) worth USD 300 million was signed 
with the World Bank on May 28, 2008. This credit line has a maturity of 30 years with a 5.5 year grace period. Within the framework of this credit programme the export transactions and 
medium/long-term working and fixed capital investments of the ship/yacht and dock building, and 
machinery manufacturing sectors are aimed to be financed. The deadline for application to the credit program is 30.06.2013. The last date that a company received benefits under the program 
was 28.06.2013.  
  5. The European Investment Bank Credit Programme 
 
A credit agreement was signed with the European Investment Bank on 24 September 2008 with 
the aim of supporting the export-oriented projects for expansion and modernization of existing equipment and new fixed capital investments in Turkey realized by SMEs operating in the 
manufacturing industry, logistic and tourism sectors. This credit programme came into force 
in 2009.  Working capital loans have also launched to be  provided along with the investment loans 
under the European Investment Bank Credit Programme since 2 December 2010. 
 
On 24 October 2013, second credit agreement was signed with the European Investment Bank with the aim of financing SMEs and Mid-Caps oper ating in Machinery and Equipment Industry. This 
credit programme has come into force in the beginning of 2014. Following the second agreement 
which was signed on 21 January 2014, third segment credit agreement was signed between Turk G/SCM/N/284/TUR 
 
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  Eximbank and European Investment Bank on November 6, 2014. The programme aims to finance 
the fixed capital investments and working capital n e e d s  o f  S M E s  i n  T u r k e y  c o n s i s t i n g  o f  s m a l l -
scaled enterprises employing less than 250 person s and medium-scaled enterprises employing less 
than 300 persons for their export and foreign currency earning services.  
 
 6. Buyers' Credit and Guarantee Programme- International Credit Programmes 
 
Through a comprehensive revision made in 2014 to accelerate the international credit programs 
(previously "Country Credits") applied as buyer's credit by Turk Eximbank since 1989, functional 
classification was launched based on project cred its and financing trade, and International Trade 
Funding and International Project Credits Directorates were established under the International 
Credits Program. 
 The International Credits Program aims to increase the competitiveness of Turkish exporters and 
contractors on international markets and to prov ide them with a risk-free environment for their 
activities in markets that have high political and commercial risks. It also provides support for transactions that have strategic importance for foreign countries and are likely to contribute to the 
political and economic relations of Turkey. 
 Goods and services exporter firms which are established in Turkey are eligible to apply for this credit program. According to OECD Arrangemen t Turk Eximbank supports 85% of the Turkish 
goods and services to be exported from Turkey. 
 Under the International Trade Finance Program, Turk Eximbank provides financial support under 
commercial terms to goods exports of Turkish firms directed to countries designated in line with 
Turkey's foreign policy and economic goals. The objectives of these programs are to establish 
long-term relations with these countries, to strengthen the competitiveness of Turkish exporters 
and contractors in international markets and to pr ovide a risk-free environment for their activities 
in the markets pertaining high political and commercial risks. The loan is extended upon the final decision of the Board of Directors of the Bank, and if necessary the Minister responsible for the Undersecretariat of Treasury. 
 
Under the International Project Credits credit lines are extended under sovereign guarantee to correspondent banks and financial institutions in various countries. Turk Eximbank provides 
financial support to the projects undertaken by Turkish contractors through its credit and/or 
guarantee programs. Project credit is provided through a correspondent bank, which will also be the borrower of the loan, in the project buyer's country. The total payment term cannot exceed 10 
years including the grace period. Interest rates are established between the parties concerned in 
comply with the OECD Consensus.    7. Short-term Credit Insurance  
 
Short-term Export Credit Insurance Programme;  cover is provided on the whole-turnover basis for 
commercial and political risks. Shipments up to 360 days to be effected on all payment terms from 
open-account to documentary credits are covered in accordance with the country cover condition 
and credit limit approval. This is a post-shipment facility, but since 2004 pre-shipment cover has also been provided for the insured firms within the framework of the Short-Term Export Credit 
Insurance Programme.  
  Short-term Domestic Credit Insurance Programme; cover is provided on the whole-turnover basis 
for commercial risks. Domestic shipments up to 360 days are covered in accordance with the 
credit limit approval. It is a post-shipment facility.  
  8. Medium and Long-term Insurance Facilities 
 
Specific Export Credit Insurance Post Shipment Risk Programme ; as a single contract (single 
buyer) multi-transaction export credit insurance programme, aims to provide insurance cover for 
the export of capital and semi-capital goods sold wi th credit terms in line with OECD Rules and it 
provides insurance cover for commercial and/or political risks for post shipment stages. Extended credit terms may be covered in line with the specific conditions and/or the requirements of the export transaction upon the Board's approval.  
 G/SCM/N/284/TUR 
 
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   9. Insurance Programme for Unfair Calling of Bond 
 With this insurance programme, cover provided against the risk of unfair calling of bonds (bid bonds, advance payment and performance bonds) wh ich are issued by a bank in favour of the 
public buyer based in the borrowing countries for projects undertaken by Turkish contractors or 
Turkish subcontractors. Turk Eximbank is responsible to indemnify the Turkish contractor/subcontractor, due to a call being made under the bond by reason of events or 
circumstances beyond the contractor's control.  
  10. Political Risk Insurance Programme for Overseas Contracting Services  
This product provides coverage to Turkish contractors for any losses which may sustain on account 
of political risks such as hostilities, civil wars, up risings, etc. that prevent them from receiving or 
transferring payments to which they are entitled or result in the confiscation of their machinery 
and equipment. 
 4. Background and authority for the subsidy (including identification of the legislation under 
which it is granted) 
 Turk Eximbank was established in 1987 as the sole official export credit agency in Turkey and 
commenced implementing its programmes in the beginning of 1988. The Bank was chartered by 
the Cabinet on August 21, 1987 by Decree No. 87/11914
4, following the order of Law No. 3332 
(31 March 1987) by maintaining the juridical and legal personality of the State Investment Bank.  
Turk Eximbank regularly presents her annual programmes to the Supreme Advisory and Credit 
Guidance Committee chaired by the State Minister in charge of the Bank's activities. The Committee approves Turk Eximbank's annual programmes, including country limit ceilings for the 
credit, insurance and guarantee programmes as well as Turk Eximbank's general strategy, 
targeted annual volumes and key objectives of Turk Eximbank's short and medium term credit programmes for the year. The Committee meets at least once a year and the Board of Directors of Turk Eximbank is obliged to observe the limits set. The Committee also includes as members:  
 
 1. Undersecretary of the Ministry of Science, Industry and Technology, 
 2. Undersecretary of the Ministry of Economy, 
 3. Undersecretary of the Ministry of Customs and Trade, 
 4. Undersecretary of the Ministry of Development,  5. Undersecretary of the Ministry of Finance, 
 6. Undersecretary of the Treasury, 
 7. Governor of the Central Bank of the Republic of Turkey.  The Chairman and Deputy Chairman of the Board of Directors and the Chief Executive Officer 
(CEO) of the Bank are also members of the Committee.  
 The limits of foreign country loans are set by the Annual Programmes within the foreign economic 
policy of the Turkish Republic by Supreme Advisory and Credit Guidance Committee and are 
approved by Cabinet of Ministers. Loans to foreign countries for a maturity of 2 years and more and medium term insurance coverage are subject to  approval of the Minister responsible for Turk 
Eximbank according to Article 10 of Act No. 4749 re lated to the regulation of Public Finance and 
Debt Management.  The Cabinet Degree no. 2009/15198 was put into effect on 15 July 2009 in accordance with 
Act no. 4749 is regulating the financial supports provided by Turk Eximbank under its export 
credit, insurance and guarantee programmes.  
                                               
4 The Cabinet Decree No: 2013/4286 which was pu blished in the Official Gazette dated 
23 February 2013, abolished this Decree. The new Decree's attachment, "Principles Regarding Establishment 
and Duties of Export Credit Bank of Turkey", was revi sed in line with the new Turkish Commercial Code that 
entered into force on 1 July 2012, the banking legislation, and global financial and economic developments that have occurred since the establishment of the Bank. G/SCM/N/284/TUR 
 
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  5. Form of the subsidy 
 
Short-term export credits  
In the form of loan. 
 Buyers' Credit and Guarantee Programme 
 
It may be in the form of direct lending or guarantee.   Other medium and long term export credits 
 
In the form of loan or guarantee  
Short, Medium and Long Term Insurance Facilities 
 In the form of credit insurance. 
 
6. To whom and how the subsidy is provided 
 1. Short-term Export Credits  
 
i. Credits Extended via Commercial Banks 
Pre-shipment Export Credit Programme ; extended to "Sectoral Foreign Trade Companies" (SFTC), 
manufacturers, manufacturer-exporters and exporters for a maximum of 540 days. The credit is 
extended via intermediary Turkish commercial banks, which are allocated credit lines following an evaluation process. These commercial banks are re sponsible for the default risk of the borrowers. 
Turk Eximbank therefore assumes bank risk rather than that of the exporter or manufacturer. The 
interest rate is determined by Turk Eximbank according to money market rates, loan repayment periods and cost of funding.   
PSEC-Priority Development Areas Export Credit Programme ; extended to companies located in 
Turkey's priority development areas. Intermediary  banks are required to extend at least 5% of 
their credit limit to firms in these regions. Interest  rate is slightly lower than the interest rate of 
PSEC TL.  
 Free Trade Zone Pre-shipment Foreign Currency Export Credit Programme ; extended in FX to 
companies located in Turkey's free trade zone area s. Interest rates are the same as that of PSEC-
FX rates.   Pre-Shipment Foreign Currency Export Cr edit via Participation Banks Programme;  extended in FX 
to export-registered manufacturers, manufacturer exporters and exporter companies excluding the 
FTC companies with a maximum maturity of 360 da ys and the company limit in the program shall 
be a maximum of $15 million. 
 
ii. Credits Extended Directly by Turk Eximbank 
Foreign Trade Companies Short-term Export Credit Programme ; extended to "Foreign Trade 
Corporate Companies" (FTCC) and "Sectoral Foreign Trade Companies" (SFTC) with a repayment 
period of up to 180 days. Applicants must be enti tled to FTCC and SFTC status by the Ministry of 
Economy. The interest rate is determined by Turk Eximbank according to money market rates, loan repayment periods and cost of funding.  
 
Pre-export Credit Programme ; extended to manufacturer-exporters, exporters and export oriented 
manufacturers except FTCC and SFTC for a maximum of 360 days for both TL and FX credits. The 
interest rate for FX option is the same as that of PSEC FX and the rate for TL option is the same as 
that of PSEC TL.   
Free Trade Zone Pre-export Foreign Currency Export Credit Programme; extended in FX to 
companies located in Turkey's free trade zone areas for a maximum of 360 days. Interest rates are the same as that of Pre-export Credits-FX rates.  G/SCM/N/284/TUR 
 
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Pre-export Credit Programme for SMEs ; extended to only small and medium scale enterprises 
directly by Turk Eximbank 540 days for FX and TL credits. The interest rate is lower than other 
short-term credits.  
 
iii. Credits provided using the sources of the Central Bank of Turkey 
Post-Shipment Rediscount Credit Programme ; Deferred export receivables of Turkish exporters, 
manufacturer-exporters and manufacturers subject to  bankers' acceptances provided by domestic 
commercial banks or irrevocable letters of credit which is added a payment confirmation by a domestic commercial bank; deferred export receivab les arisen out of cash against goods, cash 
against documents, irrevocable letter or credit wh ich were insured by Turk Eximbank Short – Term 
Export Credit Insurance policy are discounted by Turk Eximbank. Export receivables with a 
maturity of up to 360 days are discounted on LI BOR+spread, where spread is determined by Turk 
Eximbank. 
 
Rediscount Credit Programme; this pre-shipment financing facility is being executed within the 
framework of an additional limit to the post-shipm ent discount limit extended to Turk Eximbank by 
the Central Bank of Turkey. The programme which requires an export commitment aims at 
providing support to Turkish manufacturers, exporters and manufacturer-exporters with maturity 
up to 360 days in the pre-shipment base. Promisso ry notes issued by exporters on behalf of Turk 
Eximbank, which have the aval of banks possessing a short-term letter of guarantee limit with 
Turk Eximbank are discounted under this limit. Since 2013, letter of guarantees issued by banks 
possessing short-term letter of guarantee limit with Turk Eximbank, including promissory notes without aval have also been accepted as guaran tee under this programme. Export receivables with 
a maturity of up to 240 days discounted by the Central Bank of Turkey and up to 360 days are 
discounted from Turk Eximbank's own sources on LIBOR+spread, where spread is determined by 
Turk Eximbank.   
 
 2. Medium-Long Term Export Credits (Project Credits) 
 The Export Oriented Working Capital Credit Programme; manufacturers and manufacturer-
exporter firms which are established in Turkey an d which produce export oriented Turkish products 
are eligible to apply for this credit programme in which purchasing of raw materials and intermediate goods are financed based on the related expense bills within 180 days before the 
application date, at latest. The maturity for this programme is 5 years with one year grace period. 
The company limit is USD 50 million. The interest rates for foreign currency loans are based on L I B O R /  E U R I B O R  p l u s  a  s p r e a d ,  w h i l e  T L  l o a n s  h a v e  a  f i x e d  i n t e r e s t  r a t e  o r  T R L I B O R  p l u s  a  
spread, that is determined by Turk Eximbank according to money market rates, loan repayment 
periods and cost of funding.  
 The Export Oriented Investment Credit Programme; aims to provide finance to the manufacturers 
and manufacturer-exporter firms, producing export oriented goods. The capital goods such as 
machinery, equipment and other investment materials are financed in return for the related expense bills within the 180 days prior to the application date, at latest. The maximum company 
limit is USD 50 million. The loans have a maximum ma turity of 7 years with a grace period of 1 or 
2 years. The interest rates for foreign currency loans are based on LIBOR/ EURIBOR plus a spread while TRL loans have either a fixed interest rate or TRLIBOR plus a spread, that is determined by 
Turk Eximbank according to money market rates, loan repayment periods and cost of funding.  
 Overseas Chain Stores Investment Credit Programme ; extended to Turkish entrepreneurs who 
invest abroad for the establishment of shopping malls and chain stores and to those who invest 
abroad for the establishment of stores to sell thei r own brand. Entrepreneurs who benefit from this 
programme may also benefit from the short-term export credit programmes for the export of Turkish goods to be sold in these stores. Credits under this programme are granted for up to 
seven years. The interest rate is determined by Turk Eximbank according to money market rates, 
loan repayment periods and cost of funding.   
Ship-Building and Exporting Financing Programme ; Turkish firms involved in ship-building and/or 
the export of ships are eligible for this credit. The terms and conditions of the loan and/or letter of guarantee are determined by Turk Eximbank for ea ch transaction, considering the contract signed G/SCM/N/284/TUR 
 
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  between the buyer and the exporter. The amount of di rect loan/ letter of credit should not be more 
than the 85% of the total contract price.   Letter of Guarantee Programme for Overseas Contractors' Services ; Turkish contractors who 
participate in tenders abroad are provided lette rs of guarantee by Turk Eximbank under the 
counter-guarantee of Turkish commercial banks. Under this programme, Turk Eximbank issues a bid-bond, performance-bond and advance guarantee letter through a bank or directly to cover 
Turkish contractors' responsibilities for the possible projects against the employer or the 
employer's bank. The commission rate and the pa yment term are determined by Turk Eximbank 
for each transaction.   
Specific Export Credit Programme ; aims to provide finance to Turkish manufacturers, exporters 
and manufacturer-exporters having financial needs which cannot met by other credit programmes of Turk Eximbank. Terms and interest rates of the loans provided under this programme are 
determined by Turk Eximbank according to money market rates, loan repayment periods and cost 
of funding on project basis.   
Bridge Credit Programme for Overseas Contractor Services; companies that engage in overseas 
contractor services with an unpaid progress payment are eligible. It is provided with the unpaid progress payment determined on project basis. The credit can be allocated either in foreign currency or in TL. The maturities are up to 24 months for TL and FX credits. The interest rate for 
these credits is determined by Turk Eximbank according to money market rates, loan repayment 
periods and cost of funding.  
Trademark Credit Programme; under this programme, the maturity of the loans are 7 years with a 
grace period of 2 years or 10 years with a grace period of 3 years which are granted on a project 
basis with a floating interest rate, based on LIBOR/ EURIBOR plus a spread that is determined by 
Turk Eximbank according to money market rates,  loan repayment periods and cost of funding.  
  3. Credits for Foreign Currency Earning Services 
 
Tourism Credit Programme ; travel agencies selected by the Ministry of Culture and Tourism, 
private airlines that have obtained a working license from the Ministry of Transportation, and tourism enterprises are eligible for this credit. Besides, tourism companies, which are accepted as 
exporters can benefit from this programme. The maximum repayment period is 720 days. The 
amount of credit is dependent on the foreign currency attracted by firms and 100% of the total 
expenditures of the proposed pr oject, but it cannot exceed USD 25 million. The interest rate is 
determined by Turk Eximbank according to money market rates, loan repayment periods and cost 
of funding.  International Transportation Marketing Credit Programme ; international transportation companies 
resident in Turkey are eligible for this credit . The maximum payment term is 360 days. The credit 
amount is 100% of the freight to be realized in  the credit period, but cannot exceed the company 
limit amounting to USD 25 million. The interest rate is determined by Turk Eximbank according to 
money market rates, loan repaymen t periods and cost of funding.  
 Credit Programme for Participating to Overseas Trade Fairs ; the amount of credit is limited to 80% 
of the total expenditures of proposed project fo r attending firms and 30% for fair organization 
companies, but in any case cannot exceed the company limits. The maximum payment term is 360 days and interest rate is determined by Turk Eximbank according to money market rates, loan 
repayment periods and cost of funding.  
 
Credit Programme for Foreign Currency Earning Services ; companies resident in Turkey, which 
engage in foreign currency earning services, are eligible for this credit. The terms are determined 
by Turk Eximbank according to money market rate s, loan repayment periods and cost of funding. 
  
4. Export Finance Intermediation Loan (EFIL-IV)  
 
The aim of this credit programme is to financ e the medium/long-term working and fixed capital 
investments of the ship/yacht and dock buildin g, and machinery manufacturing sectors. The 
interest rate, maturity and terms of repayment (g race period and instalment plan) are determined 
by Turk Eximbank on project basis. G/SCM/N/284/TUR 
 
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 5. The European Investment Bank Credit Programme  The aim of this credit programme is to financ e the medium/long-term working and fixed capital 
investments of SMEs. The interest rate, maturi ty and terms of repayment (grace period and 
instalment plan) are determined by Turk Eximbank on project basis.   
 6. Buyers' Credit and Guarantee Programme (International Credits Programmes) 
 Through a comprehensive revision made in 2014 to accelerate the international credit programs 
(previously "Country Credits") applied as buyer's credit by Turk Eximbank since 1989, functional 
classification was launched based on project cred its and financing trade, and International Trade 
Funding and International Project Credits Directorates were established under the International Credits Program. 
 
The International Credits Program aims to increase the competitiveness of Turkish exporters and contractors on international markets and to prov ide them with a risk-free environment for their 
activities in markets that have high political and commercial risks. It also provides support for 
transactions that have strategic importance for foreign countries and are likely to contribute to the political and economic relations of Turkey.  
Goods and services exporter firms which are established in Turkey are eligible to apply for this 
credit program. According to OECD Arrangemen t Turk Eximbank supports 85% of the Turkish 
goods and services to be exported from Turkey. 
 
Under the International Trade Finance Program, Turk Eximbank provides financial support under commercial terms to goods exports of Turkish firms directed to countries designated in line with 
Turkey's foreign policy and economic goals. The objectives of these programs are to establish 
long-term relations with these countries, to strengthen the competitiveness of Turkish exporters and contractors in international markets and to pr ovide a risk-free environment for their activities 
in the markets pertaining high political and commercial risks. The loan is extended upon the final 
decision of the Board of Directors of the Bank, and if necessary the Minister responsible for the 
Undersecretariat of Treasury.  
Under the International Project Credits credit lines are extended under sovereign guarantee to 
correspondent banks and financial institutions in various countries. Turk Eximbank provides financial support to the projects undertaken by Turkish contractors through its credit and/or 
guarantee programs. Project credit is provided through a correspondent bank, which will also be 
the borrower of the loan, in the project buyer's country. The total payment term cannot exceed 10 
years including the grace period. Interest rates are established between the parties concerned in comply with the OECD Consensus. 
 
 7. Short-term Credit Insurance 
 
Short-term Export Credit Insurance Programme ; all Turkish exporters, manufacturer-exporters, 
FTCCs and SFTCs are eligible for this programme. Cover is available up to 90% of losses incurred as a result of commercial and political risks. Premiu m is charged according to the risk classification 
of the buyer's country, credit length, payment term  and the type of buyer (public or private).  
 Short-term Domestic Credit Insurance Programme ; the policyholders of Short-term Export Credit 
Insurance or the companies who are in the same group with these policyholders are eligible for 
this programme. Cover is available up to 90% of losses incurred as a result of commercial risks. 
Premium is charged according to the risk classification of the buyer and credit length.   
 8. Medium and Long-term Insurance Facilities 
 Specific Export Credit Insurance Post Shipment Risk Programme;  Capital or semi-capital goods 
exported by Turkish companies may qualify for insurance under these programme. Coverage is 
typically up to 90% of 85% of the contract value wi th 15% of the contract value having to be paid 
in advance. The premium rates are determined by Turk Eximbank on transaction basis according to the risk classification of the buyer's country, cr edit length, terms and conditions of payment, the G/SCM/N/284/TUR 
 
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  type of the buyer (public/private) and additional  guarantees (or collaterals) provided by the 
debtor.   9. Insurance Programme for Unfair Calling of Bonds 
 
Bonds are issued by a bank in favour of the public buyer based in the borrowing countries for projects undertaken by Turkish contractors or Turkish subcontractor of an international 
consortium. Under this policy, Turk Eximbank is responsible to indemnify the Turkish contractor, 
due to a call being made under the bond by re ason of events or circumstances beyond the 
contractor's control. The premium rates are determined based on the terms of the letter of credit and the risk classification of the buyer's country.  
 
 10. Political Risk Insurance Programme for Overseas Contracting Services  
This product provides coverage against losses which they may sustain on account of political risks 
such as hostilities, civil wars, uprisings, etc. th at prevent them from receiving or transferring 
payments to which they are entitled or result  in the confiscation of their machinery and 
equipment. Coverage is typically up to 90% of the contract value with 15% of the contract value 
having to be paid in advance. The premium rates are determined by Turk Eximbank on transaction 
basis according to the risk classification of the buyer's country, credit length, terms and conditions of payment, the type of the buyer (public/priva te) and additional guarantees (or collaterals) 
provided by the debtor.  
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the 
previous year). Where provision of per unit subs idy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation 
 
Not available to Turk Eximbank's programmes.  Regarding short-term credit and insurance programmes; Turk Eximbank complies with the 
Agreement on Subsidies and Countervailing Measures of the WTO. Interest rates of these credits 
are determined by Turk Eximbank in accordance with the developments in money markets, loan repayment periods and cost of funding. Short-term TL credits are mostly funded by equity, profits, 
and general provisions, which are regarded as cost free items. The rates charged by Turk 
Eximbank reflect the government's cost of funding and the Bank revises her rates according to the changes in market rates to prevent erosion of her resources from inflation. Interest rates of short-
term foreign currency loans are defined by Turk Eximbank as "LIBOR+spread", where the spread 
is calculated by taking into account the credit length and cost of funds. In order to fund these loans, Turk Eximbank relies heavily on funds borrowed from commercial banks and international financial markets. The interest rates of these loans also reflect the cost of funds. 
 
Regarding medium and long-term export credit, gu arantee and insurance facilities, Turk Eximbank 
fully complies with OECD Arrangement, which determines the guidelines for the officially supported 
export credits for two years or more.  
 Regarding export credit insurance programmes, Turk Eximbank follows all the disciplines and 
requirements furnished in the OECD Arrangem ent, Berne Union and the WTO. The insurance 
activities of Turk Eximbank are similar with th ose of the traditional ECAs'. Its basic insurance 
programmes are relatively well run and they fully meet the underwriting requirements of 
international reinsurers. For export insurance covering political and commercial risk, the exporter 
is charged a premium according to the risk classification of the buyer's country, credit length, 
payment term and the type of buyer (public or private). For domestic credit insurance covering commercial risk, the exporter is charged a premium according to the risk classification of the buyer 
and credit length. Like all other officially supported ECAs, only political risk is under the guarantee 
of the state; the losses incurred due to commercia l risks are indemnified by Turk Eximbank from 
its own resources. However, re-insurance treati es have been established with domestic and 
overseas re-insurance companies to cede part of the commercial and political risks borne by Turk 
Eximbank under the short-term export credit insu rance and short-term domestic credit insurance 
programmes (70% of commercial and political risks under short-term insurance activities are covered by a reinsurer's panel on the basis of a quota-share treaty). Premium rates and premiums G/SCM/N/284/TUR 
 
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  collected have been fairly adequate to cover the long-term operating costs and losses of the 
programmes since commencement.   8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement 
 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.   Pre-shipment TL Export Credit Programme; has been put into effect in 1989. 
International Credit Programmes (previously "Country- Buyers' Credits);  has been in effect 
since 1989. 
Short-term Export Credit Insurance Programme; has been put into effect in 1989. 
Foreign Trade Companies (FTC) Short-term FX Export Credit Programme;  has been put into effect 
in 1993. 
Pre-shipment FX Export Credit Programme;  has been put into effect in 1994. 
Pre-export FX Credit Programme; has been put into effect in 1994. 
Foreign Trade Companies (FTC) Short-term TL Export Credit Programme; has been put into effect 
in 1996. 
Post-Shipment Rediscount Credit Programme;  has been put into effect on 15 October 1996. 
Overseas Chain Stores Investment Credit Programme;  has been put into effect on 
6 September 1996. 
Pre-export TL Credit Programme;  has been put into effect in 1997.   
Specific Export Credit Programme;  has been put into effect in 1997. 
Tourism Credit Programme;  has been put into effect in 1997. 
Pre-export Credit Programme for SMEs; was commenced in 2003. 
Rediscount Credit Programme;  has been put into effect on 12 October 1999. 
International Transportation Marketing Credit Programme ; has been put into effect in 2001. 
Credit Programme for Foreign Currency Earning Services; has been put into effect on 
19 July 2002. 
Letter of Guarantee Programme for Overseas Contractors' Services; has been put into effect on 
29 July 2002. 
Insurance Programme for Unfair Calling of Bonds; has been put into effect in 2004 . 
Ship-Building Finance and Guarantee Programme; has been put into effect on 30 April 2004. 
Credit Programme for Participating to Overseas Trade Fairs ; has been put into effect in 2008. 
Export Finance Intermediation Loan (EFIL – IV); has been put into effect on 18 June 2009 and the 
deadline for application to the credit program was 30 June 2013. 
The European Investment Bank Credit Programme;  has been put into effect on 21 January 2014 
and 6 November 2014.  
Bridge Credit Programme for Overseas Contractor Services;  has been put into effect on 
19 January 2009. 
The International Islamic Trade Finance Corporation (ITFC) Backed Production Finance Credit 
Programme; has been put into effect on 20 April 2010. 
The Export Oriented Working Capital Credit Programme; has been put into effect on 
30 January 2012 
The Export Oriented Investment Credit Programme has been put into effect on 6 March 2012. 
Trademark Credit Programme;  has been put into effect on 14 May 2012. G/SCM/N/284/TUR 
 
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  Short-term Domestic Credit Insurance Programme; has been put into effect in 2013. 
Specific Export Credit Insurance Post Shipment Risk Programme; has been put into effect in 1990 
and has been revised in 2013. 
Political Risk Insurance Programme for Overseas Contracting Services; has been put into effect 
in 2013. 
 Participation Banks Pre- Shipment Foreign Currency Export Credit Programme; has been put into 
effect in 2014. 
TABLE 
TURK EXIMBANK'S PROGRAMMES IN THE THREE MOST RECENT YEARS 
($ million) 
 2012 2013 2014 
CREDIT/GUARANTEE 15,131.48 19,716.14 20,134.56 
1. SHORT TERM EXPORT CREDIT PROGRAMMES 14,387.12 18,637.99 18,404.39 
Pre-Shipment TL Export Credits 1,527.78 1,712.94 1,363.77 
Pre-Shipment FX Export Credit 1,410.78 1,360.76 1,132.59 
Pre- Shipment Foreign Currency Cred it via Participation Banks - - 31.1 
Foreign Trade Companies S-T TL Export Credit  55.87 46.99 - 
Foreign Trade Companies S-T FX Export Credit  9.90 1.00 - 
Pre-Export TL Export Credit 437.04 298.21 381.16 
Pre-Export FX Export Credit 387.98 254.79 155.24 
Pre-Export TL Credit Programme for SMEs 19.12 64.31 161.73 
Pre-Export FX Credit Programme for SMEs 5.73 26.10 43.89 
Post-Shipment Rediscount Credit Programme 21.32 264.80 338.20 
Rediscount Credit Programme 10,511.60 14.608.09 14,796.71 
2. MEDIUM TERM EXPORT CREDIT/GUARANTEE 
PROGRAMMES 314.76 904.53 1,274.86 
The Export Oriented Working Capital Credit Programme 252.67 778.70 1,027.15 
The Export Oriented Inve stment Credit Programme - 89.03 226.29 
Overseas Chain Stores Inve stment Credit Programme  - - - 
Ship-Building Finance and Guarantee Programme - - - 
Letter of Guarantee Programm e For Overseas Contractors' 
Services  - - - 
Specific Export Credit Programme - - - 
Bridge Credit  Programme for Overseas Contractors' Services 62.09 36.80 21.42 
Trademark Credit Programme   - 
3. CREDIT PROGRAMMES FOR FX EARNING 
SERVICES 123.72 118.30 180.70 
Tourism Credit  Programme 87.02 46.77 78.58 
International Transportation Marketing Credit Programme 32.55 25.00 22.92 
Credit Programme for Participating to Overseas Trade Fairs 0.82 0.24 0.085 
Credit Programme For Foreign Currency Earning Services 3.33 45.99 79.11 
4. EXPORT FINANCE INTERMEDIATION LOAN 
(EFIL – IV) 148.85 7.47 - 
5. THE EUROPEAN INVESTMENT BANK CREDIT 
PROGRAMME 118.03 45.88 181.71 
6. BUYERS' CREDIT & GUARANT EE PROGRAMMES 39.07 2.6 92.9 
INSURANCE 6,923.1 8,330.65 11,003.1 
1. S-T EXPORT CREDIT INSURANCE PROGRAMME  
6,923.1  
8,328.00  
10,134.7 
2. S-T DOMESTIC CREDIT INSURANCE 
PROGRAMME n.a. 0.05 860.2 
3. MEDIUM AND L-T EXPORT CREDIT INSURANCE 
PROGRAMMES -  2.6 8.2 
4. INSURANCE PROGRAMME FOR UNFAIR 
CALLING OF BONDS - - - 
TOTAL 22,050 28,092 31,137 
 
 
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