World Bank supports export finance in Turkey

The World Bank has extended a US$600mn export finance intermediation loan to improve the competitiveness and expand the capacity of Turkish exporting firms.

The government guaranteed loan will be split into two tranches: US$300mn provided to the Turkish Industrial Development Bank (TSKB) with a tenor of 28.5 years and a grace period of seven years and US$300mn provided to the Turkish Export Bank, with a tenor of 30 years and a grace period of five and a half years.

The facility is the fourth export finance intermediation project (EFIL IV) undertaken by the bank in Turkey. The previous three initiatives have seen Turkish banks and leasing companies provide approximately US$600mn in export financing to about 500 Turkish companies since 1999.

"The performance of Turkish firms and banks will continue improving. I see strong potential for further export development, and I expect that growing financial markets will play an increasingly important role in funding export and private sector growth," comments Ulrich Zachau, World Bank country director for Turkey.