Narrative
Full Description
Project narrative
On May 11, 2019, Industrial and Commercial Bank of China Turkey (ICBC Turkey) and the Export Credit Bank of Turkey (T.İhracat Kredi Bankası, Türk Eximbank) signed a $350 million loan agreement. The loan carried a maturity of 2.8 years, a grace period of 2.8 years, and an unknown interest rate. The purpose of the loan was to diversify the funding opportunities of Türk Eximbank in terms of cost-effectiveness and in line with its strategy of increasing the medium-long-term loan portfolio. The loan fully disbursed by the end of calendar year 2019. A signing ceremony was held at the Türk Eximbank headquarters with Trade Minister Ruhsar Pekcan, Türk Eximbank General Manager Adnan Yıldırım, ICBC Turkey Chairman Xiangyang Gao and ICBC Turkey General Manager Shaoxiong Xie in attendance. Speaking at the program, Minister Pekcan stressed the importance of the commercial relations between Turkey and China. She underlined that the $350-million loan deal with the ICBC Turkey Bank is important for Türk Eximbank, in terms of diversifying and increasing the resources of the bank. Yıldırım shared that the loan complies with Türk Eximbank's strategy to diversify its funding capabilities and increase its medium-long-term loan portfolio due to the "cost-effectiveness" of the loan.
Staff comments
1. Export Credit Bank of Turkey (Türk Eximbank), which was established in 1987, is the official export credit agency in Turkey. It is a fully state-owned bank acting as the Turkish government’s major export incentive vehicle in Turkey’s sustainable export strategy. As Turkey’s official export credit agency, Türk Eximbank has been mandated to support foreign trade and Turkish contractors/investors operating overseas. 2. Some media reports indicate a maturity length of 2.8 years; however, ICBC Turkey and Türk Eximbank report a maturity length of 3 years. For the time being, AidData has assumed that 3 years is the correct maturity length.