Press Release on Export Rediscount Credits - 20/10/2014, (2014-63)

No: 2014-63

Release Date: 20 October 2014

PRESS RELEASE ON EXPORT REDISCOUNT CREDITS

In order to spur balanced growth, the limit for export rediscount credits is increased by 25 percent. Moreover, the cost of these credits with a maturity longer than four months is reduced by 20 basis points.

The contribution of export rediscont credits to the CBRT’s reserves is expected to reach USD 13 billion in year 2014. The increase in limits, reduction of costs and easing of the conditions are envisaged to lead to a surge in the utilization of export rediscount credits by exporters and to an increase in the amount contributed from this channel to the CBRT’s foreign exchange reserves in year 2015.

1. The overall limit for the export rediscount credits, which are granted to exporters by CBRT is increased from USD 12 billion to USD 15 billion, of which USD 14 billion have been allocated to Export Credit Bank of Turkey, Inc. (Turkish Eximbank) and 1 billion USD to other commercial banks.

2. In line with the increased overall limit for export rediscount credits, the credit limit per company for Foreign Trade Capital Companies is raised from USD 240 million to USD 300 million and for other companies, it is raised from USD 180 million to USD 250 million.

3. The cost of export rediscount credits with a maturity of 121-240 days is reduced by 20 basis points and the interest rate to be applied to these credits is the six-month LIBOR/EURIBOR interest rate starting from today.

4. A new type of post shipment rediscount export credits for exporters; that are  prepared based on export receivables and assigned to factoring companies which are then presented to Turkish Eximbank for endorsment and transfered to CBRT, is launched by the Central Bank of Turkey.

 

Contact:

For further information, please contact Press Secretary Yücel Yazar

Tel No: +90 312 507 5656