G/SCM/N/315/TUR  
 
31 August 2017  
(17-4664) Page: 1/22 
Committee on Subsidies and Co untervailing 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 communication, dated 28 August  2017, is being circulated at the request of the 
delegation of Turkey . 
 
_______________  
 
 
I. INVESTMENT INCENTIVE  PROGRAMME  
1. Title of the subsidy Programm e, if relevant, or brief description o r identification of 
the subsidy  
 
Investment Incentive Programme .1  
 
2. Period  covered by the notification. The peri od 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  2015 and 2016.  
 
3. Policy objective and/or purpose of the subsidy.  
 
The Programme  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 strategy  in line with  the projected targets in 
Development Plans and Annual Programme s as well as international agreements  
 
4. Background and authority for the subsidy (including identification of the legislation 
under which it is granted).   
 
Investment Incentive Programme  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: 200 9/15199 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 Incentive Programme  entered into f orce by the Council of Minister' s 
Decree No. 2012/3305 dated  15 June 2012 and has been in force for the time period starting from 
1 Jan 2012.  
2 Decree No: 2009/ 3305, dated 15 June 2012, publishe d on the Official Gazette 
dated  19.06.2012 and No: 28328.  G/SCM/N/315/TUR  
 
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  5. Form of the subsidy (i.e., grant, loan, tax concession, etc.).  
 
Investors apply to the Ministr y of Economy with the related documents including investment 
feasibility studies and proposals. After the evaluation to be made by the Ministry on the basis of 
macro -economic Programme s, 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 desi gned within the scope of the new Programme . 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 secu rity 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 Withholdin g Support  (Only for Region 6)  
 
Regional Investment Incentive Scheme  aims to eliminate inter -regional imbalances by supporting 
the industries through incentive s 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 o f 50 million TL through of incentive measures changing according to regions. The 
Strategic Investment Incentive Scheme supports investment projects in all provinces of Turkey 
regardless of the region to increase the manufacturing of products with high impo rt 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 
                                                                                                                                                  
3 Decree No: 2009/15199, dated 14 July 2009, publishe d on the Of ficial Gazette 
dated  16.07.2009 and No: 27290.  G/SCM/N/315/TUR  
 
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  investment subjects are not supported or conditionally supporte d by the Programme  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 ser vices, research and 
development  (R&D) and environmental protection can benefit from the incentive measures 
provided in consideration of the international commitments, region al 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 Programme  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 subsidy 
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 fr om 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 A dded Tax Exemption  
 
Pursuant to the Law No:  3065 and date: 25/10/1984, 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 incom e 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, determined by the same scheme and cor responding 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 b e 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 excee d 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 em ployer's share of the social security premium 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/315/TUR  
 
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  f. Land all ocation  
 
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 avai lability 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 - Employee's share (Only for Region 6)  
 
The employee's share of the social security premium 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 ea ch item, and may provide 
information on multiple items in one heading (e.g. provide information on ite ms 3 
and 4 under one heading). In this case, the notification must clearly specify what 
items are covered by which heading.  
 
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9. Duration of the subsid y and/or any other time limits attached to it, including date of 
inception/commencement.  
 
Investment Incentive Programme  is based on the provisions of Council of Ministers Decrees. The 
current Decree which has been in force since 1 Jan 2012 will be in for ce 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 the 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 incen tive certificates are provided in Table  1 including the 
previous years of notification.   
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  
2013  1.874  2.711  17 10 4.612  
2014  1.652  2.249  13 4 3.918  
2015  2.199  2.292  24 10 4.525  
2016  3.046  2.072  8 2 5.128  
*  As of June 2017.  G/SCM/N/315/TUR  
 
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  II. EXPORT SUBSIDY PROGRAMM E FOR AGRICULTURAL PROD UCTS (2016)  
1. Title of the subsidy Program me 
 
The title of the subsidy Program me is "Export Subsidy Program me for Agricultural Prod ucts" 
(Decree No:  2016/1).  
 
2. Period covered by the notification  
 
The Decree 2016/1 of the Money -Credit and Coordination Cou ncil has been applied between 
1 January and 31 December 2016. This Programm e came into force replacing the Decree 2015/1.  
 
3. Policy objective and/or purpose of the subsidy  
 
The policy objective of this export subsidy Programm e 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 th e subsidy  
 
The subsidies are provided in the form of deduction of debts to the public corporations 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 ded uction of their 
debts to the public corporations from their subsidy 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 Share of 
exported 
quantity eligible 
to receive the 
subsidy  Maximum 
ratio of 
payment  (TL/ton)  
Cut flowers (fresh)  400 45% 9% 
Vegetables, frozen (exc. potatoes)  160 45% 10% 
Vegetables (dehydrated)  720 40% 10% 
Fruits (frozen)  155 45% 6% 
Preserves, pastes  165 100%  8% 
Honey  130 32% 2% 
Homogenized fruit preparations  125 35% 5% 
Fruit juices (concentrated)  320 15% 12% 
Olive oil  30 100%  2% 
Prepared or preserved fish  485 100%  5% 
Meat of poultry (excl. edible offals)  380 41% 14% 
Eggs 35/1000 pieces  65% 10% 
Preserved poultry meat products  485 50% 10% 
Chocolate and other food preparations containing 
chocolate  235 48% 5% 
Biscuits, waffles  235 18% 7% 
Macaroni vermicelli  130 32% 9% 
 
The second column specifies that the subsidy will only be paid on determined percentage of the 
quantity export ed and the third column specifies the maximum payment rate of the value of the G/SCM/N/315/TUR  
 
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  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 2016/1 of the Money -Credit and Coordination Cou ncil has been applied between 
1 January and 31 December 2016.  
 
9. Statistical data permitting an assessment of the trade effects of the subsidy  
 
No statistical data permitting an assessment of the tr ade effects of this subsidy is available.  
 
 
III. EXPORT SUBSIDY PROGRAM ME FOR AGRICULTURAL PRODUCTS (2017)  
1. Title of the subsidy Programme   
 
The title of the subsidy Program me is "Export Subsidy Program me for Agricultural Products " 
(Decree No:2016/16).  
 
2. Period covered by the notification  
 
The Decree 2016/16 of the Money -Credit and Coordination Cou ncil has been applied between 
1 January and 31 December 2017. This Progra mme came into force replacing the Decree 2016/1.  
 
3. Policy objective and/or purp ose of the subsidy  
 
The policy objective of this export subsidy Program me 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 Coordina tion Council, which is comprised of the 
Deputy Prime Ministers, 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 subsidie s are provided in the form of deduction of debts to the public corporations 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 t o the public corporations from their subsidy entitlement which is calculated on the basis of 
fixed amount per unit.  
 
7. Subsidy per unit  
 
The subsidy per product is given below.  
 G/SCM/N/315/TUR  
 
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  Product  Rate Share of 
exported 
quantity 
eligible to 
receive the 
subsidy  Maximum 
ratio of 
payment  (TL/ton)  
Cut flowers (fresh)  400 45% 9% 
Vegetables, frozen (exc. potatoes)  160 45% 10% 
Vegetables (dehydrated)  720 40% 10% 
Fruits (frozen)  155 45% 6% 
Preserves, pastes  165 100%  8% 
Honey  130 32% 2% 
Homogenized fruit preparat ions 125 35% 5% 
Fruit juices (concentrated)  320 15% 12% 
Olive oil  30 100%  2% 
Prepared or preserved fish  485 100%  5% 
Meat of poultry (excl. edible offals)  380 41% 14% 
Eggs 35/1000 pieces  65% 10% 
Preserved poultry meat products  485 50% 10% 
Chocolate a nd other food preparations containing 
chocolate  235 48% 5% 
Biscuits, waffles  235 18% 7% 
Macaroni vermicelli  130 32% 9% 
 
The second column specifies that the subsidy will only be paid on determined percentage of the 
quantity exported and the third column  specifies 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 2016/16 of the Money -Credit and Coordination Cou ncil has been applied between 
1 January and 31 December 2017.  
 
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 su bsidy is available.  
 
 
IV. TURK EXIMBANK'S PROGRAM MES 
(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 government's major export incent ive instrument in 
Turkey's sustainable export strategy, the Bank maintains close co -operation with the related 
entities of the government. Turk Eximbank's policies and operations have been formulated to work 
within the framework of the export -led growth st rategies 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 Supervision 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 Eximbank 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 have 1 head office, 2 regional directorate, 1 branch and nine liaison offices with a 
total staff of 631 as of end -2016.  
 
(b) The Bank's Financial Structure and Support to the Export Sector  
 
The Bank's main sources of fu nds are direct funding from the Treasury through capital injections 
as well as through borrowing from commercial banks and international financial markets.  G/SCM/N/315/TUR  
 
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  Turk Eximbank's financial resources are:   
 
 1. Capital injections  
 2. Domestic banks  
 3. Internati onal 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 sha reholder of the 
Bank. These contributions are used to support Turk Eximbank's activities and to maintain the 
Bank's capital adequacy. In addition, losses incurred 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 3,7 billion in March 2016 and the paid -in 
capital was fully paid as of March 2016.  If requested, the Turkish Treasury supports Turk 
Eximbank in its funding efforts by guaranteeing the Bank's borrowings abroad. As of end -2016, 
16% 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 Eximba nk 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 a ll trade subsidy Program mes. 
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 cost s, a sound financial structure gains more importance. In this 
context, it is very important to implement effective strategies and procedures to control credit risk, 
liquidity risk, and asset/liability risk.  
 
Using these sources, in 2016 Turk Eximbank prov ided, on the average, a total support of 
US$33  billion to the export sector, annually, through export credit, credit insurance and guarantee 
Programm es, as described below. To date, given the economic condition prevailing in Turkey, Turk 
Eximbank has inevi tably concentrated 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 Program mes, 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 . Turk Eximbank will concentrate on guarantee and 
insurance Program mes and medium and long -term buyers'  credit in the forthcoming period.  
 
Turk Eximbank provided a total export financing support of US$ 33 billion in terms of financing 
support and pure cover, which accounted for 23.2% of Turkey's exports in 2016.  
 
(c) Turk Eximbank's International Obligati ons 
 
While implementing its Programm es and forming strategies, Turk Eximbank is committed to 
conforming to the internationally accepted rules and regulations set by the WTO, the OECD 
Consensus, the EU and the Berne Union. In 1994, Turk Eximbank became a fu ll member of the 
Berne Union, an international association of export credit and investment  insurers, and has been 
representing Turkey in the Export Credits and Credit Guarantees Group (ECG) of the OECD Trade 
Committee since 1998, when Turkey became a full member of the Group. Turkey also became an 
observer member of the Participants' Group (PG) of the OECD at the end of 2006; Turk Eximbank G/SCM/N/315/TUR  
 
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  has been representing Turkey in this Group since 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 supported export credits. Within this framework, the 
OECD Consensus prin ciples 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 member of the ECG and an observer member of the 
PG, she complies  with the Arrangement on Officiall y 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 activity on a six monthly basis. Additio nally, the Bank 
completes the biannual cash flow questionnaire and  updates her chapter  in the Yellow Book of the 
OECD, which explains the Export Credit Financing Systems in OECD Member and Non -member 
Countries. Various reporting are made and questionnaires  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 ha s 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 periodic reports, regarding insuranc e and lending 
activities, non -payment situations, the terms of cover offered and commitments/offers available, 
to the Union.  
 
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 guarant ee or 
insurance Programm es at premium rates inadequate to cover long -term operating costs and losses 
of Programm e are prohibited subsidies.  
 
1. Title of the subsidy Programm e, if relevant, or brief description or identification of 
the subsidy  
 
CREDIT PROG RAMME S 
 
1. Short -term Export Credits  
 
(i)  Credits Extended via Commercial Banks  
 
 Pre-shipment Export Credit (PSEC) Program me. 
 PSEC-Priority Investment Areas Export Credit Program me. 
 Free Trade Zone Pre -shipment Foreign Currency Export Credit Program me.  
 
(ii)  Credits Extended Directly by Turk Eximbank  
 
 Foreign Trade Companies (FTC) Short -term Export Credit Program me.  
 Pre-export Credit Program me.  
 Free Trade Zone Pre -export Foreign Currency Export Credit Program me. 
 Pre-export Credit Program me for S mall and Medium Scale Enterprises (SMEs).  
 
(iii)  Credits provided using the sources of the Central Bank of Turkey  
 
 Post-Shipment Rediscount Credit Program me. 
 Rediscount Credit Program me.    
 
 G/SCM/N/315/TUR  
 
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  2.  Medium -Term Export Credits (Project Credits)  
 
 The Expor t Oriented Working Capital Credit Program me. 
 The Export Oriented Investment Credit Program me.  
 Overseas Chain Stores Investment Credit Program me. 
 Ship-Building Finance and Guarantee Program me. 
 Letter of Guarantee Programme  for Overseas Contractors' Ser vices.  
 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.  Internation Loans Programme s (previously Buyers' Credit & Guarantee Programme s) 
 
INSURANCE PROGRAMME S 
 
7.  Short -term Credit Insurance  
 
 Short -term Export Credit Insurance Programme .  
 Short -term Domestic Credit Insurance Programme . 
 
8.  Medium and Long -term Insurance Facil ities 
 
 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 c overed 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  
 
January 1 – 31 December 2016.  
 
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 currency either directly by Turk Eximbank or via 
intermediation of selected Turkish commercial banks. In 2016, 21% of the total credits were 
provided in TL and 79% in foreign currency. The Bank has financially supported 14% of Turkey's 
exports by her short -term credits in 2016.  
 
(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 G/SCM/N/315/TUR  
 
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  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 -social 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 companies having operating license for manufacturi ng 
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 recent ly developed sub -
Programme  of the PSEC extended in FX 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 t he 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/sectoral 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 faci lity provided to export -oriented 
manufacturers, manufacturer -exporters and exporters in the preparatory stage of exports. It aims 
to increase the competitiveness of exporters in international markets and support export projects 
in the preparatory stage. Th e 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 Tu rkey'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 c redit 
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 Sh ipment 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 deferred export receivables pe rformed 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 payment ter ms 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 exte nded to Turk Eximbank by the Central 
Bank of Turkey. The Programme  which requires an export commitment, aims to support Turkish 
manufacturers, exporters and manufacturer -exporters on pre -shipment basis. The opportunity for 
the companies to benefit from aff ordable 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 credit Programme s, available for export transactions 
that cannot be covered under the short -term credit and guarantee Programme s. G/SCM/N/315/TUR  
 
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  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 and producing export oriented Turkish products are 
eligible to apply for this credit Programme . Purchasing of raw mat erials 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 wh ich are 
established in Turkey and producing export oriented 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. Turk ish 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 paymen ts 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 
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 
the Bank's ex isting standard credit Programme s. It is 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 financi al 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 C redit 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 red uce the cost of exporter companies. The Programme  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 b oth their foreign currency earning services abroad and export G/SCM/N/315/TUR  
 
- 13 - 
 
  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 28 May 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 expo rt 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 Programme  is 30.06.2013. The last date that a company received benefits under the 
Programme  was 28.06.2013.  
 
5.  The European Investment Bank Credit Programme  
 
The aim of this credit Programme  is to finance the medium/long -term working and fixed capital 
investments of SMEs. The interest rate, m aturity and terms of repayment (grace period and 
instalment plan) are determined by Turk Eximbank on project basis.  
 
6.  International Loans Programme s (previously Buyers' Credit & Guarantee Programme s) 
 
Through a comprehensive revision made in 2014 to ac celerate the International Loans 
Programme s (previously "Country Credits") applied as buyer's credit by Turk Eximbank since 1989, 
functional classification was launched based on project loans and trade finance, and International 
Trade Finance and Internati onal Project Loans Directorates were established under the 
International Loans Programme . 
 
The International Loans Programme s aims to increase the competitiveness of Turkish exporters 
and contractors on international markets and to provide 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 relat ions of Turkey.  
 
Goods and services exporter firms which are established in Turkey are eligible to apply for this 
credit Programme . According to the OECD Arrangement, for loans with a rep ayment tenor of 
24 months or more, Turk Eximbank supports 85% of the Turkish goods and services to be 
exported from Turkey.  
 
Under the International Trade Finance Programme , 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 Programme s are to 
establish long -term relations with these countries, to strengthen the competitiveness of Turkish 
exporters and contractors in international markets and to provide a risk -free en vironment for their 
activities in the markets pertaining high political and commercial risks. The loans are extended 
upon the final decision of the Board of Directors of the Bank, and if necessary the Minister 
responsible for the Undersecretariat of Treasu ry. 
 
Under the International Project Loans, credit lines are extended under sovereign or acceptable 
bank guarantee to sovereign entities or 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 Programme s. The total repayment term cannot 
exceed 10 years including the grace period. Interest rates are established between the parties 
concerned in compliance with the OECD  Arrangement.  
 
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 .  G/SCM/N/315/TUR  
 
- 14 - 
 
  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 cove r for 
the export of capital and semi -capital goods sold with 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.  
 
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 pay ment and performance bonds) which 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, uprisings, etc. that prevent them from receiving or 
transferring payments to which they are entitled or result in the confiscation of their machinery 
and equip ment.  
 
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 Programme s in the beginning of 1988. The Bank was chartered by 
the Cabinet on August 21, 1987 by Decree No. 87/119144, 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 Programme s 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 Programme s, including country limit ceilings for the 
credit, insurance and guarantee Programme s as well as Turk Eximbank's general strategy, 
targeted annual volumes and key objectives of Turk Eximbank's short and medium term credit 
Programme s 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 Chair man of the Board of Directors and the Chief Executive Officer 
(CEO) of the Bank are also members of the Committee.  
 
                                                
4 The Cabinet Decree No: 2013/4286 which was published in the Offi cial Gazette dated 
23 February  2013, abolished this Decree. The new Decree 's attachment, "Principles Regarding Establishment 
and Duties of Expo rt Credit Bank of Turkey" , was revised 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/315/TUR  
 
- 15 - 
 
  The limits of foreign country loans are set by the Annual Programme s 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 accordin g to Article 10 of Act No. 4749 related 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 Ex imbank under its export 
credit, insurance and guarantee Programme s. 
 
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 allocat ed credit lines following an 
evaluation process. These commercial banks are responsible 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 Tu rk 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 ext end 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 fre e trade zone areas. Interest rates are the same as that of PSEC -
FX rates.  
 
Pre-Shipment Foreign Currency Export Credit via Participation Banks Programme ; extended in FX 
to export -registered manufacturers, manufacturer exporters and exporter companies excl uding the 
FTC companies with a maximum maturity of 360 days and the company limit in the Programme  
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 entitled to FTCC and SFTC status by the Ministry of 
Economy. The interest rate is determined by Turk Exi mbank 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 36 0 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.  G/SCM/N/315/TUR  
 
- 16 - 
 
  Free Trade Zone Pre -export Foreign Currency Export Credit Programme ; extended in FX to 
companies located in Turkey's fre e trade zone areas for a maximum of 360 days. Interest rates 
are the same as that of Pre -export Credits -FX rates.  
 
Pre-export Credit Programme  for SMEs ; extended to only small and medium scale enterprises 
directly by Turk Eximbank 540 days for FX and TL c redits.  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 receivables arisen out of cash against goods, cas h 
against documents, irrevocable letter or credit which 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 LIBOR+spread, where sp read 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 -shipment 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. Promissor y 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 guarantee 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 Capita l Credit Programme ; manufacturers and manufacturer -
exporter firms which are established in Turkey and 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 loa ns are based on 
LIBOR/ EURIBOR plus a spread, while TL loans have 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.  
 
The Export Oriented Investme nt 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 maturity of 7 years with a grace period of 1 or 
2 years. The interest rates for foreign currency loans are based on L IBOR/ 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 Credi t 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 their own brand. Entrepreneurs who benefit from this 
Programme  may also benefit from the short -term export credit Programme s 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 ma rket rates, 
loan repayment periods and cost of funding.  
 G/SCM/N/315/TUR  
 
- 17 - 
 
  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 o f 
guarantee are determined by Turk Eximbank for each transaction, considering the contract signed 
between the buyer and the exporter. The amount of direct loan/ letter of credit should not be more 
than the 85 % of the total contract price.  
 
Letter of Guara ntee Programme  for Overseas Contractors' Services ; Turkish contractors who 
participate in tenders abroad are provided letters 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 payment term are determin ed 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 Programme s 
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; companie s 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 r ates, 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 t he foreign currency attracted by firms and 100 % of the total 
expenditures of the proposed project, 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 fun ding. 
 
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 cre dit 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 repayment periods and cost of funding.  
 
Credit Programme  for Participating to Overseas Trad e Fairs ; the am ount of credit is limited to 80 % 
of the total expenditures of proposed project for 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 r ate 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 e ligible for this credit. The terms are determined 
by Turk Eximbank according to money market rates, loan repayment periods and cost of funding.  
 G/SCM/N/315/TUR  
 
- 18 - 
 
  4. Export Finance Intermediation Loan (EFIL -IV)  
 
The aim of this credit Programme  is to finance the medium/lon g-term working and fixed capital 
investments of the ship/yacht and dock building, and machinery manufacturing sectors. The 
interest rate, maturity and terms of repayment (grace period and instalment plan) are determined 
by Turk Eximbank on project basis.  
 
5.  The European Investment Bank Credit Programme  
 
The aim of this credit Programme  is to finance the medium/long -term working and fixed capital 
investments of SMEs. The interest rate, maturity and terms of repayment (grace period and 
instalment plan) are determined by Turk Eximbank on project basis.  
 
6.  International Loans Programme s (previously Buyers' Credit & Guarantee Programme s) 
 
Through a comprehensive revision made in 2014 to accelerate the International Loans 
Programme s (previously "Country Credi ts") applied as buyer's credit by Turk Eximbank since 1989, 
functional classification was launched based on project loans and trade finance, and International 
Trade Finance and International Project Loans Directorates were established under the 
Internation al Loans Programme . 
 
The International Loans Programme s aims to increase the competitiveness of Turkish exporters 
and contractors on international markets and to provide them with a risk -free environment for 
their activities in markets that have high polit ical 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 establish ed in Turkey are eligible to apply for this 
credit Programme . According to the OECD Arrangement, for loa ns with a repayment tenor of 
24 months or more, Turk Eximbank supports 85% of the Turkish goods and services to be 
exported from Turkey.  
 
Under the Inte rnational Trade Finance Programme , 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 Programme s are to 
establish long -term relations with these countries, to strengthen the competitiveness of Turkish 
exporters and contractors in international markets and to provide a risk -free environment for their 
activities in the markets pertaining high politica l and commercial risks. The loans are 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 Loans, credit lines are extended under sovereign or acceptable 
bank guarantee to sovereign entities or 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 Programme s. The total repayment term cannot 
exceed 10 years including the grace period. Interest rates are established between the parties 
concerned in compliance with the OECD Arrangement.  
 
7.  Short -term Credit Insurance  
 
Short -term Export Cred it 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. Premium 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 gro up 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.  
 G/SCM/N/315/TUR  
 
- 19 - 
 
  8.  Medium and Long -term Insurance Facilities  
 
Spesific 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 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/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 undertak en 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 reason 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 coverag e against losses which they may sustain on account of political risks 
such as hostilities, civil wars, uprisings, etc. that 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 countr y, credit length, terms and conditions 
of payment, the type of the buyer (public/private) 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 amoun t budgeted for that subsidy (indicating, if possible, the average 
subsidy per unit in the previous year). Where provision of per unit subsidy 
information (for the year covered by the notification, for the previous year, or 
both) is not possible, a full exp lanation  
 
Not available to Turk Eximbank's Programme s.  
 
Regarding short -term credit and insurance Programme s; 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 Eximb ank 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 in terest rates of these loans also reflect the cost of funds.  
 
Regarding medium and long -term export credit, guarantee 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 Programme s, Turk Eximbank follows all the disciplines and 
requirements furnished in the OECD Arrangement , Berne Union and the WTO. The insurance 
activities of Turk Eximbank are simil ar with those of the traditional ECAs'. Its basic insurance 
Programme s 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 charg ed 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 G/SCM/N/315/TUR  
 
- 20 - 
 
  and credit length. Like all other officially supported ECAs, only political risk is under the guarantee 
of the state; the losses incurred due to commercial risks are indemnified by Turk Eximbank from 
its own resources. However,  re-insurance treaties 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 insurance and short -term domestic credit insurance 
Programme s (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 
collected have been fairly adequate to cover the long -term operating  costs and losses of the 
Programme s 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 Programme s. The Programme s may be revised, e liminated 
or new Programme s 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 Loans Programme s (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-shipmen t 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 Redisc ount 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 Credi t 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.  
 
Internatio nal 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.  G/SCM/N/315/TUR  
 
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  Export Finance Intermediation Loan (EFIL – IV); has been put into effect on 18 June 2009 and the 
deadline for application to the credit Programme  was 30 June 2013.  
 
The European Investment Bank Credit Programm e; has been put into effect on 21 January 2014, 
6 November 2014, 28 May 2015 and 6 May 2016.  
 
Bridge Credit Programme  for Overseas Contractor Services ; has been put into effect on 
January  19, 2009.  
 
The International Islamic Trade Finance Corporation (ITF C) Backed Production Finance Credit 
Programme ; has been put into effect on April 20, 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 int o effect on 06 March 2012.  
 
Trademark Credit Programme ; has been put into effect on 14 May 2012.  
 
Short -term Domestic Credit Insurance Programme ; has been put into effect in 2013.  
 
Spesific 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.  
 
9. Statistical data: Table  
 
Turk Eximbank's Programme s In the Three Most Recent Years  
 ($ million)  
 2016  2015  2014  
CREDIT/GUARANTEE  21,886.59  20,215.51  20,134.56  
1. SHORT TERM EXPORT CREDIT PROGRAMME S 19,564.26  17,814.07  18,404.39  
Pre-Shipme nt TL Export Credits  1,050.05  1,187.53  1,363.77  
Pre-Shipment FX Export Credit  1,232.74  1,190.54  1,132.59  
Pre- Shipment Foreign Currency Credit via Participation 
Banks  - - 
 31.1 
Foreign Trade Companies S -T TL Export Credit  - - - 
Foreign Trade Companies  S-T FX Export Credit  - 78.60  - 
Pre-Export TL Export Credit  427.43  573.70  381.16  
Pre-Export FX Export Credit  74.36  160.60  155.24  
Pre-Export TL Credit Programme  for SMEs  314.03  312.23  161.73  
Pre-Export FX Credit Programme  for SMEs  84.35  87.62  43.89  
Post-Shipment Rediscount Credit Programme  730.63  358.19  338.20  
Rediscount Credit Programme  15,650.67  13,865.06  14,796.71  
2. MEDIUM TERM EXPORT CREDIT/GUARANTEE 
PROGRAMME S 1,096.09  1,509.03  1,274.86  
The Export Oriented Working Capital Credit Programme  862.55 1,232.06  1,027.15  
The Export Oriented Investment Credit Programme  179.02  223.81  226.29  
Overseas Chain Stores Investment Credit Programme   0.450  - - 
Ship-Building Finance and Guarantee Programme  - - - 
Letter of Guarantee Programme  For Overseas 
Contra ctors' Services  - - - 
Specific Export Credit Programme  21.95  - - 
Bridge Credit Programme  for Overseas Contractors' 
Services  32.12  31.58  21.42  
Trademark Credit Programme  - 21.58  - G/SCM/N/315/TUR  
 
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  3. CREDIT PROGRAMME S FOR FX EARNING 
SERVICES  103.17  164.36  180.70  
Tourism Credit Programme  59.00  58.55  78.58  
International Transportation Marketing Credit Programme  37.72  52.80  22.92  
Credit Programme  for Participating to Overseas Trade 
Fairs 0.060  0.055  0.085  
Credit Programme  For Foreign Currency Earning Services  6.39 52.96 79.11  
4. EXPORT FINANCE INTERMEDIATION LOAN 
(EFIL – IV) - - - 
5. THE EUROPEAN INVESTMENT BANK CREDIT 
PROGRAMME  192.13  250.75  181.71  
6. CREDITS SOURCED BY OTHER 
INTERNATIONAL FINANCIAL INSTITUTIONS  658.94  340 - 
7. INTERNATIONAL LOANS PROGRAMME S 
(BUYE RS' CREDIT & GUARANTEE 
PROGRAMME S) 272.0  137.3  92.9 
INSURANCE  11,038.8  10,072.1  11,003.1  
1. S-T EXPORT CREDIT INSURANCE 
PROGRAMME  10,126.1  9,466.2  10,134.7  
2. S-T DOMESTIC CREDIT INSURANCE 
PROGRAMME  845.9  590.3  860.2  
3. MEDIUM AND L -T EXPORT CREDIT 
INSURANCE PROGRAMME S 66.8 15.6 8.2 
4. INSURANCE PROGRAMME  FOR UNFAIR 
CALLING OF BONDS  - - - 
TOTAL  32,925.39  30,287.61  31,137.66  
 
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