A stand-by letter of credit was approved between Turkey and the IMF in 1994, but lapsed in late 1995. Generally, validity of a proposal is required to be 3 to 6 months from the bid date. Government tenders often involve bid and performance bonds. Bid bonds requested are normally equivalent to 3 percent of the value of the tender, while performance bonds are usually equivalent to 6 percent of the contract value. The only calls these bonds in cases of extreme bad faith.
All bonds have to be counter-guaranteed by a Turkish national bank.
There are a large number of leasing companies in Turkey. Most of them are owned by Turkish banks. They finance purchases of expensive capital goods such as aircraft, auto fleets or special equipment. Financial leasing used to account for only 1 to 2 percent of capital expenditures in Turkey vs. 20 percent in developed countries. Because of funding difficulties, leasing activities decreased substantially during the first half of 1994.