Improving the Role of Eximbanks/ECAs in the OIC Member States
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Türk Eximbank is 100% owned by the Undersecretariat of Treasury. The policy direction of Turk
Exim is based on the export-led growth strategies of the government and particularly the 5-year
development plans and Annual Programs, which include strategies on trade. Turk Exim
representatives also contribute to the formulation of these plans. The scope of the annual
operations of the Bank is determined by the Annual Program that is approved by the Supreme
Advisory and Credit Guidance Committee (SCLGC), chaired by Prime Minister or the Minister,
with whom the Bank is affiliated, and other members are the executives of related government
departments. Loans are extended under various credit programs within the framework of the
authority given to the Board of Directors by the SCLGC, for the realization of the Bank’s
objectives set by the annual programs.
With a staff complement of over 500 (in 2014) and a capital base of USD 3.9 billion, Türk
Eximbank supported more than USD 28 billion in 2013, of which loans accounted for 70%. This
amounts to more than 18% of total Turkish exports. The ratio is even higher in 2014.
As a full-service ECA, the Bank provides financing, guarantees and insurance to exporters,
investors and banks. It is also a member of the Berne Union, a founding member of the Aman
Union and part of the Working Group on Export Credits and Credit Guarantees (in which Turkey
has a membership) and the Participants Group (in which Turkey has an observer status) of the
OECD. It also maintains close working relations with other ECAs as well as international financial
institutions, the WTO and the EU.
Analysis:
Türk Eximbank has a number of special features. It is active in all lines of business, especially
lending to Turkish export companies, but it is also active in providing MLT buyer credit facilities.
Its adherence to the OECD guidelines, which apply to the MLT business, is also notable, levelling
the playing field for Turkish exporters against their OECD competition. The nature and
arrangement of the government’s guarantee for certain political risks is also unusual in that the
government compensates the Bank for losses, rather than take the risks directly, and the Bank
then faces a waiting period for payments from the Treasury once a loss has been registered. This
arrangement is more burdensome on the Bank than an arrangement whereby the Bank manages
the state account business for a fee.
Türk Eximbank is required to complement the banks in its operations. Under such a system,
depending on how formalized, this could be understood to mean that a case-by-case analysis of
potential bank involvement is undertaken, or that a regular (annual or semi-annual) evaluation
of the changing commercial bank capacity and appetite in all areas of operations is conducted.
Without these regular market checks, complementarity with banks cannot be assured, but there
is not apparently significant friction with the banks at this point.
3.5.9 Uzbekistan
National Export-Import Insurance Company (Uzbekinvest NEIIC)