Long Term Export Finance

closed

Closed

The development objective of Long Term Export Finance Project for Turkey is to improve access to longer term finance for export oriented small, medium and large enterprises.This project has two components. 1) The first component, Eximbank will on-lend funds through Project Financial Intermediaries (PFIs) to Small and Medium Enterprises (SMEs) and Large Enterprises (LEs), Eximbank will select PFIs according to criteria agreed upon with the World Bank, and subject to the no objection of the World Bank. PFIs can be banks (including participation banks, i.e. Islamic finance) and leasing companies. The selected PFIs will, in turn, provide sub-finance to private export oriented LEs and SMEs, the sub- beneficiaries of the credit line. On-lending will take place on an ‘open doors’ and ‘first come first serve’ model for interested and qualifying financial intermediaries. In the case of Islamic finance, the Subsidiary Financing Agreement (SFA) will be Islamic finance compatible, and sub-financing will be mostly for Murabahah and Ijarah. 2) The second component, Eximbank will act as a PFI and lend directly to export oriented SMEs only, the Eximbank will assume the credit risk of sub-finance to the final beneficiaries.

FY17 - Financial Sector

World Bank Group

Project

Government