Recent Developments
Amendments were made to the Principles Regarding the Establishment and Duties of Türkiye İhracat Kredi Bankası Anonim Şirketi (”Eximbank”) (the ”Principles”) through the Presidential Decree No. 5445 dated April 19, 2022 (”Decree”). The amendments were published in the Official Gazette No. 31815 and dated April 20, 2022 and entered into force on the same day.
Before the Decree, the coverage of the credit insurance that Eximbank was entitled to provide was limited to insurances provided for the purposes of securing the sales of exporters and the sales of the goods produced by their non-Turkish subsidiaries, at least 50 per cent of the share capital of which is held by exporters (the ”Foreign Affiliates”), and made within the production country, or to countries other than Turkey.
The Decree expanded the coverage of Eximbank’s credit insurance, allowing it to provide credit insurance for the purposes of securing the sales of the goods produced by foreign third parties to be sold by exporters and their Foreign Affiliates under their own brands (including the brands of the group companies).
Conclusion
The Decree expanded the scope of Eximbank’s credit insurances. Considering the changes in the global supply chain, the amendment aims to support export strategies, and facilitate the process in providing security requested by financial institutions to finance exporters’ sales.
