Imam SUN
Under the coordination of the Ministry of Commerce, the management structure and capital of Export Development Joint Stock Company (İGE), which was established on October 15, 2021 to contribute to the solution of exporters’ access to finance and credit guarantee problems, and started its activities on March 1, 2022, is expanding. In HDI, 86.7 percent of the partnership belongs to exporters’ associations, 8.3 percent belongs to Turkish Exporters Assembly (TIM) and 5 percent belongs to Turk Eximbank. Now, the way has been cleared for the participation of nearly 20 private and public banks in Turkey to this structure. 20 percent of HDI shares were sold to 20 private and public banks.
Credit volume will double
The most important reason for this decision is shown as the desire to strengthen the capital and to enable exporters to use unsecured HDI loans quickly, not only from Eximbank, but also from all banks. With the participation of 20 banks, HDI’s capital increased from TL 1.5 billion to approximately TL 2.5 billion. HDI provides guarantee support to exporters with the target of 22 billion TL loan volume today. HDI, which also has the guarantee of the Ministry of Treasury and Finance, positively affects the appetite of banks to extend loans with the assurance it creates. With the partnership of 20 banks with HDI, the loan volume is expected to reach up to TL 40-45 billion.
Loan with affordable interest
Banks’ HDI inclusion process has been completed, but the loan to be granted interest There is no set rate. According to the information we have received, an appropriate interest rate will be provided, below the market average. In addition, banks are planning to open the credit taps with favorable interest rates, as HDI loans, which are also guaranteed by the Ministry of Treasury and Finance, provide a return rate guarantee for banks. Considering that 20 banks will compete with each other, the interest rate is likely to become more favorable over time.
20 banks bought 20 percent of İGE shares In addition to Türk Eximbank, which is a 5 percent partner of İGE, 20 private and public banks also became shareholders of 20 percent of İGE’s shares. These banks; Akbank, Anadolubank, Alternatif Bank, Denizbank, QNB Finansbank, Garanti BBVA, Halkbank, ING, Kuveyt Türk, Odeabank, Şekerbank, TEB, Turkey finance, Türkiye İş Bankası, Türkiye Sınai Kalkınma Bankası, Vakıfbank, Vakıf Katılım, Yapı Kredi, Ziraat Participation and Ziraat Bank. According to the records of the Banks Association of Turkey (TBB), Turk Eximbank has 23 branches in Turkey. The number of branches of 20 banks in 81 provinces is over 10 thousand. Thus, exporters will be able to apply for HDI loans from anywhere in Turkey. In this way, the time to obtain the loan will be shortened.
Guaranteed loans over 5 billion TL
HDI, which started its operations on March 1, has given more than 5 billion TL of loan guarantees to date. İGE offers loans to more than 1000 exporters with the “İGE Equity Support Package”, which targets a loan volume of TL 22 billion. The support package has been prepared to enable Eximbank to provide loans to exporters who have credibility but have difficulty in accessing financing due to lack of collateral, through guarantees to be given from HDI equities. The loan upper limit for the 12-month loan package, whose application process will continue until the end of the year, has been determined as 15 million TL.
How does he use credit?
- HDI, which makes providing export credits to small-scale companies among its priorities, is sensitive to the issue of providing the right resources to the right companies.
- Exporters, who have been able to use loans only from Eximbank branches until now, will now be able to use loans from more than 10 thousand branches with the participation of 20 banks in HDI. Exporters can apply to these banks by saying “I want to use a loan with HDI guarantee”.
- Companies that want to use loans with HDI guarantee must document their loan needs. Firms should export in return for the credit they use. This process will be followed by the banks.
- Firms will be able to use loans in terms of working capital needs, bills to pay, raw materials they want to buy, salary payments. No credit will be given for retroactive spending. Banks will provide the necessary money on behalf of the person who issued the invoice for the payments to be made by the companies. In salary payments, the total wage to be paid at the end of the month will be determined and deposited into the company account.
- The credibility and record of companies are controlled by Eximbank. With the participation of 20 banks in HDI, these banks will carry out these processes in the same way. The resources offered by HDI are expected to encourage companies to export and increase the number of exporters.
- The priority of banks to extend loans is that companies are SMEs. In addition, the main feature sought in companies is that they have low risk and high credit record.
Reserve funds of exporters’ unions go to HDI
In order to strengthen the capital of HDI, which started its operations on March 1 and whose capital was 10 million TL at that time, in addition to the existence of the Turkey Promotion Group, which is under TİM, the budgets that 61 exporters’ unions did not use were transferred as reserve funds and approximately TL 1.5 billion. capital was created. Today, HDI’s capital is approximately TL 2.5 billion. In order to ensure the continuity of the capital, the budgets considered as reserve funds that the exporters’ associations do not use and cannot use every year will be transferred to HDI and will be used for the financing needs of exporters, especially SMEs. On the other hand, the expenses incurred by exporters to use HDI secured loans will also be included in the HDI budget. In this way, it is aimed to ensure continuity in capital.