The CBRT issued an instruction aimed at directing loans to the right area and stopping their misuse. The definition of exporter and the qualifications of export credits were clarified in the implementation instruction regarding the security facility sent to banks.
The Central Bank of the Republic of Turkey (CBRT) has sent implementation instructions to banks regarding the establishment of securities. With the instruction, the CBRT clarified the definitions of loans extended for the purpose of financing export loans and foreign exchange earning service activities. In this way, it is aimed to prevent the misuse of loans.
In the instruction of the CBRT, the definition of export credits is “Export credits with a maturity of two years at the most to companies with a ratio of at least 110 percent of the total exports in the last three fiscal years or the last fiscal year to the total imports”.
According to the instruction, the net export condition will not be sought for newly established companies operating in the defense industry sector, applying with a commitment to export high-tech products, using credit for post-shipment export financing and using credit with the submission of a proforma invoice or contract in the current year, provided that export credit insurance is made.
In the instruction, it was stated that the intermediary exporter firm, which is a net exporter, will be considered as a net exporter as well as the manufacturer or manufacturer-exporter firm that provides final goods for export.
DESCRIPTION OF CURRENCY EARNING SERVICE ACTIVITIES
The instruction also included definitions on loans extended for the purpose of financing foreign exchange earning service activities. Accordingly, these loans were defined as export loans in terms of the application of a security facility, provided that the export loans defined in the relevant legislation of the Ministry of Commerce (excluding sales and deliveries, the costs of which are collected from domestic residents) are used with a maximum maturity of two years.
In case the loan is made available and reported in return for export or foreign exchange earning service commitment, it will be essential to make the commitment within twenty-four months from the date of loan usage. The lending bank will be deemed obliged to monitor and report on a credit basis whether export or foreign exchange earning service commitments have been realized.
In the event that it is determined later that the companies using loans are not net exporters during the loan disbursement or that they are not among the companies for which the condition of being a net exporter is not sought, and if the commitment is not fulfilled within 24 months, the sanctions provisions of the Instruction will be applied for the liabilities that are underestimated.