Export Credit Programs For Marine Sector/ Shipping Industry O.Umut TOPAL International Trade Finance May 31, 2017

AGENDA About Us Türk Eximbank Facilities International Loans International Trade Finance

Promoting exports of Turkish goods and services Established in 1987 The only ECA of Turkey Promoting exports of Turkish goods and services About us

OFFICES & BRANCHES Türk Eximbank currently operates with 629 employees. 4

TURK EXIMBANK & EXPORT FINANCING 5

TYPES OF TURK EXIMBANK’S SUPPORTS 6

FACILITIES Domestic Credits Insurance International Loans 7

DOMESTIC CREDITS Short Term Credits Medium –Long Term Credits Credit Programs for Foreign Currency Earning Services 8

INSURANCE PROGRAMS Short Term Export Credit Insurance M/L Term Export Credit Insurance Domestic Credit Insurance in 238 Country Commercial and political risk cover Coverage: 90% in principle 9

International Project Loans INTERNATIONAL LOANS International Project Loans International Trade Finance

INTERNATIONAL LOANS Borrower Private sector transactions To finance the foreign buyers/employers… Public projects State Guarantee Public Institutions under the State Guarantee Private sector transactions Limit allocation to the reputable foreign banks 12 countries 20 banks Total $ 550.7 million limit Financing for the consumer and capital goods as well as projects Short-Medium-Long Term

INTERNATIONAL LOANS COUNTRY LIMITS OECD Country Risk Classification Category 0 (least risk) → Category 7 (highest risk) Country Limit (million US Dollar) YEAR GROUP O, I, II III IV V VI VII 2016 750 600 450 400 350 Group Limit 1,500 1,000 1,250

INTERNATIONAL LOANS BANK LIMITS EUROPE Albania (1) Russia (2) North Cyprus (1) Belarus (2) Ukraine (1) AFRICA Nigeria(1) Afreximbank ASIA Azerbaijan (2) Georgia (2) Kazakhstan (2) Kıyrgyzistan (1) Mongolia (3) Uzbekistan (1) 20 banks, 550,7 million US Dollar

INTERNATIONAL TRADE FINANCE PROGRAMS Foreign Bank Buyers’ Credit Loans Under the State Guarantee Domestic Banks’ Buyer Credit Export Receivables Discounting Programs

INTERNATIONAL TRADE FINANCE EXPORT RECEIVABLES DISCOUNTING PROGRAM Discount of L/C, Bill of Exchange or Open Account Receivables Supplier Credit Facility Insurance Policy as a Collateral Financing up to 12 years Financing at Post Shipment Stage Cost: insurance premium + discount interest Applicable in 238 countries

INTERNATIONAL TRADE FINANCE EXPORT RECEIVABLES DISCOUNTING PROGRAM Advantages for the Turkish Exporter Competitive advantage among its peers Liquidity through discounting the receivables after delivery. Advantages for the Foreign Buyer Longer deferred payment terms Non-use of bank lines of credit

CIRR (Commercial Interest Reference Rate) EXPORT RECEIVABLES DISCOUNTING PROGRAM EXPORT CREDIT FOR SHIPS (OECD RULES) Minimum 20% down payment (from buyer to exporter) Semi-annual installments Repayment period up to 12 years Minimum premium rate ……and CIRR (Commercial Interest Reference Rate)

EXPORT RECEIVABLES DISCOUNTING PROGRAM CASH AGAINST GOODS (OPEN ACCOUNT) WORKFLOW IMPORTER EXPORTER 2 SALES CONTRACT 5 DELIVERY OF THE VESSEL 4 INSURANCE ASSIGNMENT 8 DISCOUNTING APPLICATION ASSIGNMENT LETTER 1 DISCOUNTING 3 PAYMENT 6 7

EXPORT RECEIVABLES DISCOUNTING PROGRAM DOCUMENTS AGAINST ACCEPTANCE-BILL OF EXCHANGE WORKFLOW SALES CONTRACT 2 IMPORTER EXPORTER IMPORTER’S BANK EXPORTER’S BANK DELIVERY OF THE VESSEL 5 INSURANCE 1 BOE ACCEPTED 8 DELIVERY OF DOCUMENTS 6 DOCUMENTS BOE 10 ASSIGNMENT ASSIGNMENT LETTER BOE & APPLICATION 11 4 3 DISCOUNT 13 BOE 12 PAYMENT 14 DOCUMENTS 7 BOE 9

INTERNATIONAL TRADE FINANCE EXPORT RECEIVABLES DISCOUNTING PROGRAM Sample Pricing : For 5 years repayment period with 10 equal installments; Discounting Interest Rate= CIRR= 0.31% Insurance Premium= 1.3% (indicative)

INTERNATIONAL TRADE FINANCE EXPORT RECEIVABLES DISCOUNTING PROGRAM Sample Pricing : For 10 years maturity with 20 equal installments; Discounting Interest Rate= CIRR= 0.93% Insurance Premium= 3% (indicative)

INTERNATIONAL TRADE FINANCE EXPORT RECEIVABLES DISCOUNTING PROGRAM CIRR SampleTransaction Germany PPS / PA Pipe Extruder Lines Amount: 406 thousand € Tenor: 2 years CIRR : 0,32% / Interest Rate: 2,25%

INTERNATIONAL TRADE FINANCE EXPORT RECEIVABLES DISCOUNTING PROGRAM -MARINE SECTOR-SampleTransaction Export Transaction of Tugboat Tenor 5 years Gabon

INTERNATIONAL TRADE FINANCE EXPORT RECEIVABLES DISCOUNTING PROGRAM Sample Transactions France Buses Export Amount: 6,9 million € Maturity: 1,5 years-3 years Uzbekistan Biscuit Production Line Amount: 660 thousand $ Maturity: 3 years Kenya Machine Export Amount: 1.6 million € Maturity: 5 years

INTERNATIONAL TRADE FINANCE DOMESTIC BANK BUYERS’ CREDIT PROGRAM Borrower: Intermediary Banks located in Turkey Utilization: Throughout the foreign branches and subsidiaries of Domestic Banks in Turkey Pre shipment & Post shipment Financing Option Refinancing

INTERNATIONAL TRADE FINANCE DOMESTIC BANK BUYERS’ CREDIT PROGRAM SUBSIDARIES BRANCHES NETHERLAND BAHRAIN T.R.NORTH CYPRUS SUBSIDIARIES BRANCHES GERMANY U.S. AZERBAIJAN BULGARIA BOSNIA H. GEORGIA KAZAKHSTAN IRAQ UZBEKISTAN UNITED KINGDOM RUSSIA T.R.NORH CYPRUS TURKMENISTAN SAUDI ARABIA GREECE SUBSIDARIES BRANCHES GERMANY KOSOVO BULGARIA IRAQ FRANCE U.KINGDOM NETHERLAND GEORGIA SWITZERLAND BAHRAIN RUSSIA T.R.NORTH CYPRUS LIBYA Kuveyt Investment Co.

INTERNATIONAL TRADE FINANCE DOMESTIC BANK BUYERS’ CREDIT PROGRAM Sample Transactions Kosovo Machine Export Amount: 600 thousand € Maturity: 5 years Iraq Construction Material Export Amount: 5 million € Maturity: 10 years Russia Concrete Production Machine Amount: 1.1 million $ Maturity: 5 years Makina İhracatı, Kosova, Tutar: 263 bin Avro, 5 yıl vade Beton Ekipmanı İhracatı, Rusya,Tutar: 1,1 Milyon ABD Doları, 5 yıl vade İnşaat Malzemeleri İhracatı, Irak, Tutar: 5 Milyon Avro, 10 yıl vade

INTERNATIONAL TRADE FINANCE FOREIGN BANKS BUYERS’ CREDIT PROGRAM Foreign Banks with whom Trade Finance Loan Agreement Signed Preliminary Analysis Limit Allocation Loan Agreement Export Financing Russia Kyrgyzstan Credit Europe Bank Demir Kyrgyz Bank Georgia Azerbaijan TBC Bank IBA Bank of Georgia Pasha Bank Belarus T.R.North Cyprus  Belinvestbank Creditwest Bank Albania Mongolia Banka Kombetare T. Development Bank of Mongolia Khan Bank Nigeria Ukrania Sterling Bank West Finance 10 different countries, 13 banks, 170.4 million $ Loan Agreement…

INTERNATIONAL TRADE FINANCE FOREIGN BANKS BUYERS’ CREDIT PROGRAM Sample Transactions Turkish R. of North Cyprus Construction Material Export Amount: 1,5 million $ Maturity: 6 months Russia Textile Export Amount: 1 million $ Maturity: 23 months Belarus Machine (Mangle) Amount: 315 thousand € Maturity: 23 months

INTERNATIONAL TRADE FINANCE LOANS UNDER THE STATE GUARANTEE Sample Transaction Buyer: State Institutions Limit Allocation under the Sovereign Guarantee Loan Agreement Export Financing Djibouti Geothermal Drilling Machine Park Amount: 10 million $ Maturity: 6 years Devlet Garantili İşlemler İş Akışı: İhracatçı ve kamu kurumu satış sözleşmesi imzalar. Kamu Kurumu satış sözleşmesi kapsamında borçlanmaya haiz kamu kuruluşuna Maliye ya da Finans Bakanlığına finansman talebini iletir. Kamu Kurumu bu talebi uygun görür ise Türk Eximbank’a finansman talebini iletir. Tahsis edilen limit kapsamında Türk Eximbank ve Borçlanmaya haiz kuruluş kredi anlaşması imzalar. Açılacak akreditif tahtında ihracat gerçekleşir. Rambursman bankası olarak Türk Eximbank finanse edeceği tutarı doğrudan ihracatçının banka hesabına aktarır. Geri ödeme vadesinde gerçekleşir. *** Cibuti’ye gerçekleştirilmesi planlanan, 11,8 milyon ABD Doları tutarındaki “Jeotermal Sondaj Makine Parkı” ihracat işlemine, Bankamızca 6 yıl vadeli, 10 milyon ABD Doları tutarında finansman sağlanmasına ilişkin Cibuti’nin Sanayiden Sorumlu Ekonomi ve Maliye Bakanlığı’nın talebi, 21 Aralık 2015 tarihli YKK Kararı ile kabul edilmiştir. Kredi anlaşması 08.03.2016 tarihinde imzalanmıştır.

INTERNATIONAL LOANS RECENTLY FINANCED COUNTRIES Mal ihracatı UTF: Almanya, Azerbaycan, Birleşik Arap Emirlikleri, Belarus, Çin, Fas, Fransa, Gabon, Güney Afrika, Gürcistan, Irak, Kazakistan, Kenya, KKTC, Kosova, Moldova, Özbekistan, Pakistan, Paraguay, Romanya, Rusya, Senegal, Türkmenistan, Ukrayna, Ürdün, Zambiya UPK: Senegal, Sudan, Kamerun, Kongo, Etiyopya, Gana, Belarus Uluslararası Ticaretin Finansmanı Birimi kuruluş tarihi olan 2014 yılından itibaren; toplam 27 ülkeye yönelik, 148 adet ihracat işlemi için, yaklaşık 45,7 milyon ABD Doları tutarında kullandırım yapılmıştır. Proje

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