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Türkiye’s finance chief pledges to continue support for exporters

Evaluating the scope of the project to be implemented by the state-owned bank that supports the country’s exporters, and aiming to back their green transition, Türkiye’s treasury chief pledged Friday to continue mobilizing the capabilities for exporters.

Treasury and Finance Minister Mehmet Şimşek, as part of his evaluations for Anadolu Agency (AA), said that the “Türkiye Green Export Project,” guaranteed by the World Bank, has been approved and is set to be implemented by the Export Credit Bank of Türkiye (Türk Eximbank).

“As part of this project, the Türk Eximbank will obtain a credit of 1 billion euros ($1.1 billion) from different creditors. The World Bank will guarantee 600 million euros of the 1 billion euros to be secured by the Türk Eximbank to support green transformation and green exports and the Ministry of Treasury and Finance will provide a counter-guarantee,” he explained.

“Thus, Eximbank will be able to borrow from international markets with longer maturities and lower costs,” he added.

Emphasizing the importance of the project, he further said, “With the 600 million euros credit guarantee by the World Bank, Türk Eximbank will provide exporters with long-term financing to support green transformation and green exports.”

He explained that it aims to boost the international competitiveness of the country’s exporters, who are “the driving force of the Turkish economy, by eliminating the negative effects of the European Union’s border carbon adjustment mechanism.”

At the same time, he underlined they were continuing strong cooperation with the World Bank to support the country’s green transformation and exporters.

“While controlling domestic demand, we are directing our resources to more productive and efficient areas and mobilizing all our capabilities for exports,” said Şimşek.

“We will continue to use a significant portion of the funds we obtain through external financing for our exporters,” he vowed.

The minister also said they have implemented fiscal, monetary and selective credit policies to control consumption while strongly supporting investment and exports.

“Thus, we are improving the composition of growth and the current account balance,” he said.

Reiterating that the Türk Eximbank has secured $3.7 billion from foreign capital markets and international financial institutions to support exporters’ projects related to green transformation, Şimşek also stated that they expect credit and resource inflows in this direction to continue.

Şimşek noted that they have prioritized exporters’ access to financing during this period and successive increases have been made in the capital of the Türk Eximbank.

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