Türk Eximbank takes steps to back exporters amid virus
The move aims for exporters to continue production and maintain employment as they see orders falling or being canceled due to virus fears.
The official export credit agency extended credit repayment terms by 3-6 months depending on exporter demand, commitment closure term by a year, prolonged rediscount credit terms to two years, and eased insurance terms.
The bank is working on financial solutions for exporters’ stocks piling up due to waning orders, said Ali Güney, the head of Türk Eximbank.
The move was in line with the government’s 15.4 billion relief package, Güney underlined.
Since its foundation in 1987, Turk Eximbank has been conducting export credit, buyer credit, credit insurance and guarantee programs aimed at developing economic and political relations between Turkey and other countries.
Meanwhile, state-owned lender Halkbank announced on March 24 that it will provide both business credit cards with a maximum limit of 25,000 Turkish Liras ($3,870) and cash credit lines with the same amount to every applying shopkeepers.
On March 23, four Turkish private lenders and participation banks joined the three state-owned lenders to announced packages to fend off the economic fallout caused by the coronavirus pandemic.
İsBank, Akbank, Ziraat Katılım and Vakıf Katılım said in separate statements that they will postpone both corporate and personal loan repayments and also provide flexibility to their customers.
İsbank became the first private bank to announce its support, saying all the necessary support, including grace periods, will be assessed on a case-by-case basis.
The bank said small- and medium-sized enterprises (SMEs) and micro-enterprises will be supported in order to fulfill commercial obligations they entered into before the epidemic, and if necessary, maximum efforts will be made for support.
No İsbank customers will be charged through April 30 for wire transfer transactions through digital channels, it said, adding that credit card limits will be increased if customers, especially in their health and food supplies, need it for shopping.
Turkish Banking Association (TBB) last week recommended easing credit access and providing flexibility to all lenders for customers “who need additional loans due to a provisional disruption in their revenues-expenses balance, have difficulty in the timely repayment of their liabilities, and intend to repay their debt on time.”
State-owned lenders Ziraat, Halkbank and Vakıfbank led the initiative with packages announced on March 24.