Turkey’s state-owned credit agency Eximbank will begin offering loans to Turkish firms that plan to expand their overseas operations by purchase of a foreign company or through acquisition, according to Economy Minister Zafer Çağlayan on Thursday.
At an automotive sector meeting in İstanbul, he announced that with the new type of loans, the state will distribute loans under two categories. One option will be no payment for two years with seven years of monthly installment payments, while the second option will be no payment for three years followed by 10 years of installment payments.
Noting that the interest rate on loans will be under market rates, Çağlayan said, “The general manager of the bank is authorized to approve up to $10 million in loans, but loan applications for more than $10 million will need to be authorized by the board of directors,” and added: “The ministry is trying its best to serve the needs of our businessmen by distributing incentives or low-rate state loans. We suggest businessmen buy firms that specialize in feasibility research as well as distribution networks and services. We are ready to grant $200,000 to our industrialists to conduct feasibility studies.” Türk Eximbank, established in the 1980s, is a fully state-owned bank acting as the Turkish government’s major export incentive instrument in Turkey’s sustainable export strategy.