Recent Development

The Turkish Council of Ministers approved the country limits list ("Country Limits "). The list set outs the country limits for cash and non-cash government-supported export loans and insurance to be provided by the Export Credit Bank of Turkey ("Turkish Eximbank"). The Council of Ministers' decree was published in the Official Gazette No. 30248 and dated November 22, 2017.

What's new?

In accordance with Article 10 of the Public Finance and Debt Management Law No. 4749, Turkish Eximbank can extend loans to foreign countries, institutions and international aid consortia on behalf of the Republic of Turkey. The Council of Ministers of the Turkish Government determines the countries of operation and their respective loan limits annually. In this context, the following are the details of the limits and requirements:

  • The Country Limits set the total group limit at USD 7.75 billion. For each risk group, the group limits and total risk ceiling are: USD 1.5 billion and USD 750 million for countries in group OECD 0-II; USD 1.5 billion and USD 600 million for countries in group OECD III; USD 1 billion and USD 450 million for countries in group OECD IV; USD 1.25 billion and USD 400 million for countries in group OECD V; and USD 1.25 billion and USD 350 million for countries in groups OECD VI and VII.
  • The total of the international loans extended to a foreign country in one year and the medium-long term insurance coverage cannot exceed the ceiling for the above-mentioned groups.
  • The loans to be provided by Turkish Eximbank with the Council of Ministers' authorization are exempt from the abovementioned limits.
  • Loans extended to multinational development banks, banking groups with subsidiaries in various countries and holding companies, and other export credit institutions are excluded from the limits.

Conclusion

The Country Limits will be in force until the Council of Ministers approve new country limits.