World Bank body to help Turkey grow export sector
DHA PhotoThe Multilateral Investment Guarantee Agency (MIGA), the political risk insurance and credit enhancement arm of the World Bank Group, has announced that it will help Turkish Eximbank provide medium- and long-term funds to Turkish exporters.
“MIGA is providing guarantees of $333 million to a syndicate of banks jointly led by Citibank N.A. and Norddeutsche Landesbank Girozentrale of Germany, against the risk of non-honoring of financial obligations by a state-owned enterprise on their 10-year loan facility to Turkey’s official export credit agency,” it said April 7.
Société Générale S.A. of France is also participating in the loan facility, and the two-tranche facility will complement Turkish Eximbank’s other funding sources, it added.
A signing ceremony for the transaction will be held in Washington on April 22, according to the statement.
The MIGA-supported loan facility is aimed specifically at helping the bank provide credit to SMEs to support export-led growth, according to the statement.
“Export-led growth strategies are an integral part of Turkey’s economic development plans,” said Hayrettin Kaplan, CEO of Türkish Eximbank.
“MIGA’s backing of the 250 million euros dual-tranche loan facility will help us provide longer-term financing for exporters at a lower cost. We are looking to expand this program in order to reach exporting SMEs who have difficulty accessing long-term, lower cost financing from commercial banks,” he added.
“MIGA’s coverage will help provide longer-term financing to Turkish Eximbank, which will help them diversify their financing sources and expand their SME portfolio,” said Valentino Gallo, global head of export and agency finance of Citigroup.
“We’re pleased to collaborate with Turk Eximbank in achieving its mandate to support Turkish exporters, investors, and contractors operating abroad,” he added.
“We’re pleased to continue our efforts to supporting private-sector led growth in Turkey,” said Keiko Honda, MIGA executive vice president and CEO.
Turkish Eximbank is fully owned by the government of Turkey and plays a crucial and expanding role in implementing the country’s sustainable export strategy.