Türk EXIMBANK

1. Türk EXIMBANK Fifth Meeting of Trade Financing Committee March 26, 2015

2. Background • Established in 1987 as a joint stock company • Is 100% owned by the Turkish Treasury • Current capital base is 2.4 billion TL • Is the sole provider of official support to exports in Turkey • Provides wide variety of products--direct lending facilities as well as insurance/guarantee products

3. Samsun Liaison Office İstanbul – Headquarter Bankamız Hakkında Bankamız Misyonu European Side Liaison Office Trabzon Liaison Office Bankamız Faaliyetleri Özsermaye 1987 yılında kurulmuştur. Ankara RegionalDirectorate Bursa Liaison Office Kredi Faaliyetlerimiz Sigorta Faaliyetlerimiz Kayseri Liaison Office İzmir Branch Uluslararası Krediler Konya Liaison Office Denizli Liaison Office Gaziantep Liaison Office Adana Liaison Office

4. Products-SupportTypes • Working Capital Loans • Insurance Products • International Loans

5. WorkingCapitalLoans • Short term working capital loans provided to Turkish firms -- pre-shipment stage • Aims to satisfy working capital needs of Turkish companies • 40%of the exports credits in Turkey given by Turk Eximbank- • important tool for Turkish exporters whose working capital needs are higher in line with Turkey’s export composition • MLT term- Export Oriented InvestmentLoans • Support for Foreign Exchange Earning Transactions • Bridge financing to Turkish contractors • International transportation firms • Tourism • Software

6. Insurance • Insurance • Benefits • Protecting exporters against non-payment risk due to commercial and political risks • Policies issued can also be used to secure funding • Cooperation agreements with 18 Turkish commercial banks-9 of these include mlt transactions • Limits allocated provide a good source of information regarding the buyer’s credibility • Overview • Currently concentration is on short term • Developing new products under mlt insurance programs • Domestic insurance facility put into effect as of September, 2013 • Cover • Providing cover to 238 countries around the world

7. Insurance • Unfair Calling of Bonds – revising the program to better the serve the needs • Political Risk Insurance for Contractors -- recently became available

8. InternationalLoans • International Loans • Buyers’ credit/guarantees • Sovereign transactions • Limits allocated according to the OECD Risk Classification • Total disbursements have reached USD 2.4 billion in 25 countries • Most recent allocations • Ethiopia-railway- largest credit allocated in the history of Turk Eximbank • Belarus- hotel • Senegal- conference center • Ghana-water and hospital projects • Loans extended to banks that are found eligible- • Total limit allocated reached 800 million $ to17 banks in 8 different countries and one multilateral bank • including one multilateral bank -- Afraexim

10. InternationalLoans • Abiding by international rules and regulations – determining the terms of the loans accordingly • OECD Arrangement • Non-price elements • repayment period, repayment profile, down-payment, spoc, etc. • Price elements • Interest rate, ppremium • WTO rules applicable to export credits • Berne Union guiding principles

11. InternationalLoans • New facilties put in to effect especiallyto facilitate trade financing • BoE Programs- new facility put into effect in 2014 • two transactions already completed • Two-Step Loans extended to Turkish commercial banks that have over branches overseas – new facility

12. billion $ % %20 %20 %18 20 35 13.7 11 30 16 % 14,4 25 8,3 12 20 % 9,2 % 9,1 6,9 21.4 % 7,8 20,1 % 7,1 15 8 19,7 15,1 10 5,7 4,5 4 5,1 6,7 5 4,8 4,3 3,9 5 0 0 2008 2010 2011 2012 2013 2015* 2009 2014 Share in Turkey’s exports (right axis) Insurance Credit 2011 USD 12.42 billion 2014 USD31.1 billion 2015 USD 35 billion Total Support

13. General Requirements ApplicabletoAllPrograms • Exports realized by Turkish companies established under Turkish Commercial Code • Subsidiaries of Turkish firms established overseas (at least 50% owned by the mother company in Turkey) can benefit from our insurance products. • Sales of the subsidiary within that country and its exports to third countries are covered • Content requirements • only goods and services of Turkish origin are eligible for financing • Re-exports not allowed

14. Relations and SpecialArrangementswithTurkishGovernment • Approval of the Annual Program by the Higher Counsel of Credit Guidance Committee • Approval of the annual Country Limits by the Cabinet of Ministers • Terms and conditions of the loans are subject to the approval of the Minister in charge of the Turkish Treasury • maturity of two years or more • Equal to or higher than USD 20 million • Indemnification of political risk losses by the Turkish Treasury

15. Relations with IDB and IDB Member Institutions • We have very strong relations with IDB going back to early 1990s • Turk Eximbank was the Agent of IDB products in Turkey • Currently discussing new means of cooperation with IDB officials that will contribute increasing business volume in OIC member states • Agency Agreement with ICIEC • Medium term insurance policies to eligible Turkish Exporters • investment insurance policies to eligible Turkish exporters, investors and banks investing ICIEC member states • ICIEC also participates as a reinsurer to the quota-share reinsurance treaty of the Bank • Signed 200 million dollars Two-Step Murabaha Agreement with ITFC in June 2014 • Is the founder member of the Amman Union established in 2009

16. JoiningForcesWithOurCounterpartsAroundtheWorld • Signed over 30 Agreements-areas of cooperation include but not limited to • Agency Agreements • ICIEC – Dhaman • Cooperation in third countries – reinsurance/paralel insurance • Cooperation that will contribute to increasing bilateral economic relations • Staff training / exchanging knowledge and expertise • Exchanges of information • Cooperation in recovery-debt collection following claims payment

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