Türkiye boosts export financing tenfold
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Türkiye boosts export financing tenfold

Created : 13 Sep 2023
Türkiye boosts export financing tenfold

The Central Bank of the Republic of Türkiye (CBRT) has increased the daily limit for rediscount credits offered to banks in support of exporters. This move is part of the government's efforts to boost outbound shipments and reduce the trade imbalance by reducing reliance on imports and promoting exports.

The CBRT has doubled the daily limit for banks to extend rediscount credits to TL 3 billion ($111 million) from TL 1.5 billion. This follows a previous increase from TL 300 million to TL 1.5 billion in July.

Treasury and Finance Minister Mehmet Şimşek expressed the government's commitment to prioritizing exports and noted the need for more export-oriented investments for sustained economic prosperity.

CBRT Governor Hafize Gaye Erkan emphasized the central bank's focus on providing financing to exporters to help improve the country's current account balance and support small- and medium-sized enterprises (SMEs) in accessing rediscount loans.

The government aims to achieve price stability in the medium term, which will enable Turkish companies to access credit more easily in global markets.

Türkiye's current account swung back to a deficit in July after a brief surplus, primarily due to the trade imbalance. The country's current account deficit for the January-July period matched the government's year-end forecast, and the new economic roadmap aims to reduce this deficit over the coming years.

The increase in rediscount loan limits is expected to encourage exporters to expand their operations and boost production and exports.

Turkish Exporters Assembly Chair Mustafa Gültepe highlighted the significance of this decision in providing exporters with improved access to affordable financing, particularly benefiting SMEs and high-performing exporters.

Overall, this move by Türkiye's central bank reflects the government's commitment to boosting exports and reducing the trade deficit by supporting exporters with increased access to financing.

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