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Şimşek orders capital increase: 'We have started work for a third capital increase'

Treasury and Finance Minister Mehmet Şimşek announced that work has begun to increase the capital of Türk Eximbank in order to support exporters.

Treasury and Finance Minister Mehmet Şimşek made an assessment regarding the steps taken to strengthen the capital structure of Türk Eximbank and increase financing opportunities for exporters. Şimşek stated that he has ordered a capital increase for Türk Eximbank for the third time since July of last year in order to support exports.

Emphasizing that he has attached great importance to policies aimed at supporting exports and exporters since the day he took office, Şimşek recalled that in this context, the daily rediscount credit limit sourced from the Central Bank of the Republic of Türkiye (TCMB) was increased 10-fold to 3 billion liras to strengthen exporters' access to finance. Şimşek said that increases in rediscount limits will continue according to need.

Drawing attention to the capital increases made to Türk Eximbank since last year, Şimşek reported that while the Bank's paid-in capital was 13.8 billion liras at the beginning of 2023, a capital transfer of 6.8 billion liras was made in July 2023, and 3.3 billion liras in January of this year.

"WE HAVE STARTED WORK"

Providing information that they have made a new decision regarding the capital of Türk Eximbank as part of their policies to facilitate exporters' access to finance and increase export support, Şimşek said, "We also consulted with our Minister of Trade, Ömer Bolat. We have started work to increase the capital of Türk Eximbank, which provides a breath of fresh air to our exporters, for the third time in the last 7 months, and we will conclude it as soon as possible."

Şimşek stated that Türk Eximbank provided 42 billion dollars in support to exporters last year, consisting of 19.6 billion dollars in cash loans and 22.4 billion dollars in receivables insurance and guarantees, and that the Bank aims to provide 50 billion dollars in support to exporters this year as well.

"500 MILLION DOLLARS IN FINANCING"

Stating that the bank secured 500 million dollars in financing from international capital markets last week, Şimşek used the expression, "Our bank's efforts to secure 1.5 billion dollars in long-term, cost-effective resources with maturities of up to 10 years from supranational financial institutions, to be completed in the first half of 2024 in line with the long-term financing needs of our exporters, are ongoing."

Emphasizing that Türk Eximbank's new steps in this direction will continue, Şimşek said, "With the strong support of our government, Türk Eximbank will achieve its 2024 targets and further increase its support for our exporters."

Minister Şimşek stated that they attach importance to ensuring that loans are extended with different types of collateral in addition to letters of guarantee in order to solve the problem of exporters' access to finance, and made the following assessment:

"Following the capital increases, the Bank's efforts to provide collateral convenience to exporters and lower credit costs will accelerate further. With this work, it will be ensured that companies with high creditworthiness and export value are granted loans without letters of guarantee and with other collateral accepted in the banking sector."

GOAL OF THE ECONOMIC PROGRAM

Pointing out that the ultimate goal of the economic program is qualified investment and employment, Şimşek said that they will continue to support this area in line with the primary priority of exports.

Stating that they aim to achieve high and sustainable growth by increasing the contribution of net exports to growth, Şimşek noted the following:

"We will do whatever is necessary to increase the contribution of our exports to growth and to reach our goal of balanced and sustainable high growth. In line with our country's export-oriented growth target, the support our government provides to exports will continue to increase."

In addition, Minister Şimşek shared the following in a post on his X account:

"We are always by the side of our exporters.

We are increasing Eximbank's capital for the third time in the last 7 months.

We will also rapidly complete the work that will provide collateral convenience to our exporters. Thus, while our exporters' access to finance improves, credit costs will also decrease."