The Japanese Bank for International Co-operation (JBIC) has signed has signed a variety of agreements and export credit lines with four Turkish banks.
The Japanese ECA has signed a memorandum of understanding (MOU) with the Export Credit Bank of Turkey (Turk Eximbank), and another one with Garanti Bankasi, pledging to exchange information on future collaboration in financing.
Under the agreements, the two Turkish banks will collaborate with JBIC on projects involving exports of Japanese machinery and equipment to Turkey and the neighbouring countries, including the Middle East, Central Asia and North Africa.
JBIC has also extended export credit lines to Yapi Kredi and Akbank, helping the Turkish banks finance the purchase of Japanese machinery with medium to long-term loans, either in yen or in US dollars.
The loan to Yapi Kredi amounts to US$350mn and is co-financed by JBIC (US$210mn) and private financial institutions.
The facility extended to Akbank is also co-financed with private financial institutions, for a total of US$500mn, US$300mn of which provided by JBIC.
JBIC and Akbank signed an MOU in October 2012, with the purpose of co-operating on trade financing.
“In recent years, there have been growing expectations on the export of machinery and equipment from Japan to Turkey and its neighbouring countries through collaboration between Japanese and Turkish companies, and also on the major role JBIC should play therein,” JBIC says in a statement.