{"id":87831,"date":"2020-01-15T14:24:08","date_gmt":"2020-01-15T14:24:08","guid":{"rendered":"https:\/\/www.gtreview.com\/?p=87831"},"modified":"2020-01-15T16:41:05","modified_gmt":"2020-01-15T16:41:05","slug":"chinas-exim-bank-renews-300mn-loan-agreement-to-boost-exports-to-turkey","status":"publish","type":"post","link":"https:\/\/www.gtreview.com\/news\/asia\/chinas-exim-bank-renews-300mn-loan-agreement-to-boost-exports-to-turkey\/","title":{"rendered":"China Exim renews US$300mn loan agreement to boost exports to Turkey"},"content":{"rendered":"
In a bid to boost trade with Turkey, the Export-Import Bank of China has agreed to provide a three-year loan worth US$300mn to Garanti BBVA.<\/p>\n
The deal, which renews a similar agreement struck between the banks in 2016, will see financing provided to Turkish companies for imports from China. The previous loan was also worth US$300mn and had the same tenor, but came to an end last year.<\/p>\n
Speaking to GTR, <\/strong>a spokesperson for Garanti BBVA says that there will be no sector-based limitation and all types of companies will be funded, so long as they import from China.<\/p>\n The bank declined to comment on the main sectors that benefitted from the previous loan, but IHS Markit principal economist Andrew Birch tells GTR <\/strong>that around 40% of Turkey\u2019s imports from China are made up of three main categories: televisions; chemical products such as manmade fibres; and machinery and equipment, a lot of which is construction based.<\/p>\n Turkey has been upping its imports from China recently, with World Bank statistics showing that China has become the nation\u2019s biggest import partner over the past few years, moving ahead of Germany and Russia, to make up around 10% of total imports in 2017.<\/p>\n \u201cWhen we signed the first agreement in 2016, we were the first commercial bank to raise the highest funding amount from China Exim. But following us, there were other Turkish banks that signed agreements with China Exim. It is obvious that China Exim has an interest and support in the Turkish market,\u201d the Garanti BBVA spokesperson says.<\/p>\n Birch attributes this uptick in trade activity with Turkey to a few factors. For one, China\u2019s Belt and Road Initiative, which has seen it provide vast sums of money for infrastructure projects around the world.\u00a0<\/strong><\/p>\n But he also says Turkey\u2019s perpetual trade deficit means it relies heavily on imports: \u201cOver the next 10 years, they will still depend a lot on imports for their own produced exports. And so that leaves a lot of opportunities for countries like China and others to continue to import to feed the Turkish production cycle.\u201d<\/p>\n <\/p>\n