G/SCM/N/253/TUR/Suppl.1  
 
20 November 2014  
(14-6787)  Page: 1/15  
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 
Supplement 
The following notification, dated 10 November 2014, is being circulated at the request of the 
Delegation of Turkey.  
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 I. 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 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 State Ministry as 
nominated by the Prime Minister. Legislation of Tu rk 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 has two branches and eight liaison offices with a total staff of 483 as of end-2013. 
 
(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. 
 G/SCM/N/253/TUR/Suppl.1 
 
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  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 2,2 billion in April 2013 and the paid-in 
capital was fully paid as of April 2013. If requeste d, the Turkish Treasury supports Turk Eximbank 
in its funding efforts by guaranteeing the Bank's borrowings abroad. As of end-2013, 9 per cent of the Bank's sources used for the funding of her asse ts are paid-in capital. 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, 
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 2011-2013 period Tu rk Eximbank provided, on the average, a total 
support of US$20.9 billion to the export sector, annually, through export credit, export credit 
insurance and guarantee programmes, as described below. To date, given the economic condition 
prevailing in Turkey, Turk Eximbank has inevitably  concentrated on short-term trade financing. As 
a medium term strategy, the Bank, like most othe r ECAs in developed countries, plans to change 
its direction of activities gradually not only from short term to medium and long term programmes, but also from cash loans to non-cash loans and guarantees thus providing more room for Turkish 
commercial banks in short-term trade financing to Turkish exporters. In line with this aim and 
considering the fact that Turk Eximbank is one of the export-related institutions which will play an 
active role for Turkey to reach US$ 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$28.1 billion in terms of financing 
support and pure cover, which accounted for 18.5 per cent of Turkey's exports in 2013.    
(c)  Turk Eximbank's International Obligations 
 While implementing its programmes 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 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 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' Gr oup (PG) of the OECD at the end of 2006; Turk 
Eximbank has been representing Turkey in th is Group since then. The Bank makes regular 
reporting and notifications to the Berne Un ion, the ECG, the PG and the WTO.   G/SCM/N/253/TUR/Suppl.1 
 
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  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 member of the ECG and an observer member of 
the PG, she complies with the Arrangement on Offici ally Supported Export Credits. Turk Eximbank 
has been spending efforts to achieve a harmonizat ion 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 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 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.   
 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 Cr edit (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. G/SCM/N/253/TUR/Suppl.1 
 
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  The Export Oriented Investment Credit Programme.  
 Overseas Chain Stores In vestment Credit Programme. 
 Ship-Building Finance and Guarantee Programme.  Letter of Guarantee Programme for 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. 
 
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 cale ndar or fiscal year. In the latter case, 
the start and end dates of the fiscal year should be specified 
 1 January 2013 - 31 December 2013 
 
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 banks. In 2013, 16 per cent of the short-term 
credits offered by Turk Eximbank was extended via intermediary Turkish commercial banks which 
are allocated credit lines and 84% of the short- term credits was extended directly by Turk 
Eximbank. Additionally, 22% of the total credits were provided in TL and 78 per cent in foreign currency. The Bank has financially supported 12.3% of Turkey's exports by her short-term credits 
in 2013.   
 (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/253/TUR/Suppl.1 
 
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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-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.  
(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 
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 ; another 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 foreign currency 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-exporters on pre-shipment basis.    2.  Medium-Long Term Export  Credits (Project Credits) 
 
 Medium-long term export credits are specific credit 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.  G/SCM/N/253/TUR/Suppl.1 
 
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  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 
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 existing standard credit programmes.  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 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.   
 G/SCM/N/253/TUR/Suppl.1 
 
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  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. For effective utilisation of the Export 
Finance Intermediation Loan (EFIL-IV), in parallel with the demands of various sectors, the sector 
expansion request was brought into the attention of the World Bank for approval.  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.  
 6.  Buyers' Credit and Guarantee Programme 
 
This is a medium- and long-term financial support programme, which has been mainly developed for the export of capital goods and turn-key in vestment projects to be undertaken by Turkish 
contractors. The programme aims to strengthen the competitiveness of Turkish exporters and 
contractors in international markets and to prov ide these companies a risk-free environment for 
their activities in markets pertaining high political and commercial risk. Through this programme, Turk Eximbank enables foreign buyers to purc hase Turkish goods and services on deferred 
payment conditions. Within the framework of this programme, financing facilities are allocated for 
project finance and may take the form of direct lending or guarantee. Sovereign transactions have priority in the evaluation.  Also, taking the strength of the banking sector of the buyer country into 
consideration, Turk Eximbank may conclude transactions with creditworthy banks as either 
borrowers or guarantors. Furthermore, in some project finance situations, other security mechanisms such as escrow account arrangements may also be required. The 
borrowers/guarantors should be leading banks a c c e p t a b l e  t o  T u r k  E x i m b a n k  o r  t h e  o f f i c i a l  
entities/institutions in the buyer country.    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/253/TUR/Suppl.1 
 
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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 ma de 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
1, 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 July 15, 2009 in accordance with 
Act no. 4749 is regulating the financial supports provided by Turk Eximbank under its export 
credit, insurance and guarantee programmes.  
                                               
1 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/253/TUR/Suppl.1 
 
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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 per cent 
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 areas.   Interest rates are the same as that of PSEC-
FX rates.   
(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.  
 
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.   
 G/SCM/N/253/TUR/Suppl.1 
 
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  (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 240 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 240 days in the pre-shipment base. On the other hand, SMEs can apply this programme with maturity up to 360 days. Promissory notes issued by exporters on behalf of Turk Eximbank, which 
have the aval of banks possessing a short-term le tter 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 prog ramme. 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, wher e 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, which 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, which 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 
between the buyer and the exporter. The amount of di rect loan/ letter of credit should not be more 
than the 85 per cent 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 G/SCM/N/253/TUR/Suppl.1 
 
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  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 360 days. The amount of credit is dependent on the foreign cu rrency attracted by firms and 100 per cent 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 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 per cent 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 re payment periods and cost of funding.   
 Credit Programme for Participating to Overseas Trade Fairs ;  the amount of credit is limited to 
80 per cent of the total expenditures of proposed  project for attending firms and 30 per cent for 
fair organization companies, but in any case cannot exceed the company limits. The maximum payment term is 360 days and interest rate is de termined 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.    
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.   G/SCM/N/253/TUR/Suppl.1 
 
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  6.  Buyers' Credit and Guarantee Programme  
 Credit lines are extended under sovereign gu arantee to correspondent banks and financial 
institutions in various countries. Turk Eximbank provides financial support to the projects 
undertaken by Turkish contractors through its cred it and/or guarantee programmes. 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 ca nnot exceed 8 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 per cent 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 group with these policyholders are eligible for 
this programme. Cover is available up to 90 per cent 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  
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 per cent of 85 per cent of the contract value with 15 per cent 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 buye r (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 per cent of the contract value with 15 per cent 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 buye r (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 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 
 
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 G/SCM/N/253/TUR/Suppl.1 
 
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  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 
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. 
Pre-shipment FX Export 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. Foreign Trade Companies (FTC) Short-term FX Export Credit Programme;  has been put into effect 
in 1993. 
Pre-export TL Credit Programme;  has been put into effect in 1997.   
Pre-export FX Credit Programme; has been put into effect in 1994. 
Pre-export Credit Programme for SMEs; was commenced in 2003. 
Post-Shipment Rediscount Credit Programme;  has been put into effect on October 15, 1996. 
Rediscount Credit Programme;  has been put into effect on October 12, 1999. 
The Export Oriented Working Capital Credit Programme; has been put into effect on January 30, 
2012 
The Export Oriented Investment Credit Programme has been put into effect on March 06, 2012. 
Overseas Chain Stores Investment Credit Programme;  has been put into effect on September 6, 
1996. 
Ship-Building Finance and Guarantee Programme; has been put into effect on April 30, 2004. 
Letter of Guarantee Programme for Overseas Contractors' Services; has been put into effect 
on July 29, 2002. 
Specific Export Credit Programme;  has been put into effect in 1997. 
Bridge Credit Programme for Overseas Contractor Services;  has been put into effect on 
January 19, 2009. 
Trademark Credit Programme;  has been put into effect on May 14, 2012. G/SCM/N/253/TUR/Suppl.1 
 
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  Tourism Credit Programme;  has been put into effect in 1997. 
International Transportation Marketing Credit Programme ; has been put into effect in 2001. 
Credit Programme for Participating to Overseas Trade Fairs ; has been put into effect in 2008. 
Credit Programme for Foreign Currency Earning Services; has been put into effect on July 19, 
2002. 
The International Islamic Trade Finance Corporation (ITFC) Backed Production Finance Credit Programme; has been put into effect on April 20, 2010. 
Export Finance Intermediation Loan (EFIL – IV); has been put into effect on June 18, 2009.  
The European Investment Bank Credit Programme;  has been put into effect on December 21, 
2009. Buyers' Credit and Guarantee Programme;  has been in effect since 1989. 
Short-term Export Credit Insurance Programme; has been put into effect in 1989. 
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. 
Insurance Programme for Unfair Calling of Bonds; has been put into effect in 2004. 
 
Political Risk Insurance Programme for Overseas Contracting Services; has been put into effect 
in 2013.  G/SCM/N/253/TUR/Suppl.1 
 
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  Table 
TURK EXIMBANK'S PROGRAMMES IN 
THE THREE MOST RECENT YEARS 
 ($ million) 
 2011 2012 2013 
CREDIT/GUARANTEE 6,672.42  15,131.48 19,716.14  
1. SHORT TERM EXPORT CREDIT 
PROGRAMMES 6,425.25  14,387.12 18,637.99  
Pre-Shipment TL Export Credits 1,517.03 1,527.78 1,712.94  
Pre-Shipment FX Export Credit 1,204.70 1,410.78 1,360.76  
Foreign Trade Companies S-T TL Export Credit  128.84 55.87 46.99  
Foreign Trade Companies S-T FX Export Credit  13.50 9.90 1.00  
Pre-Export TL Export Credit 177.21 437.04 298.21  
Pre-Export FX Export Credit 254.98 387.98 254.79  
Pre-Export TL Credit Programme for SMEs 3.01 19.12 64.31  
Pre-Export FX Credit Programme for SMEs 0.60 5.73 26.10  
Post-Shipment Rediscount Credit Programme 0.12 21.32 264.80  
Rediscount Credit Programme 3,125.26 10,511.60 14.608.09  
2. MEDIUM TERM EXPORT 
CREDIT/GUARANTEE PROGRAMMES 62.17  314.76 904.53  
The Export Oriented Working Capital Credit Programme n.a. 252.67 778.70  
The Export Oriented Investme nt Credit Programme n.a. - 89.03  
Overseas Chain Stores Inve stment Credit Programme  - - -  
Ship-Building Finance and Guarantee Programme - - -  
Letter of Guarantee Programme For Overseas 
Contractors' Services  - - -  
Specific Export Credit Programme - - -  
Bridge Credit  Programme for Overseas Contractors' 
Services 62.17 62.09 36.80  
Trademark Credit Programme -   
3. CREDIT PROGRAMMES FOR FX EARNING 
SERVICES 54.17  123.72 118.30  
Tourism Credit  Programme 40.92 87.02 46.77  
International Transportation Marketing Credit Programme 12.53 32.55 25.00  
Credit Programme for Partic ipating to Overseas Trade 
Fairs 0.41 0.82 0.24  
Credit Programme For Foreign Currenc y Earning Services 0.31 3.33 45.99  
4. EXPORT FINANCE INTERMEDIATION 
LOAN (EFIL – IV) 23.82  148.85 7.47  
5. THE EUROPEAN INVESTMENT BANK CREDIT 
PROGRAMME 70.31  118.03 45.88  
6. BUYERS' CREDIT & GUARANTEE 
PROGRAMMES 36.70  39.07 2.6  
INSURANCE 5,752.00  6,923.1 8,330.65  
1. S-T EXPORT CREDIT INSURANCE 
PROGRAMME  
5,752.00   
6,923.1  
8,328.00  
2. S-T DOMESTIC CREDIT INSURANCE 
PROGRAMME n.a. n.a. 0.05  
3. MEDIUM AND L-T EXPORT CREDIT 
INSURANCE PROGRAMMES - -  2.6  
4. INSURANCE PROGRAMME FOR UNFAIR 
CALLING OF BONDS - - -  
TOTAL 12,426  22,050 28,092  
 
 
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