Turkish Central Bank raises rediscount loan limit for export, forex earning services

ANKARA

The Turkish Central Bank on Friday changed the conditions for utilization and repayment of rediscount credits for export and foreign exchange earning services.

According to a statement by the bank, the total rediscount credit limit has been increased to $30 billion.

"Of this limit, $20 billion is allocated to the credits to be extended via the Export Credit Bank of Turkey (Turk Eximbank), and $10 billion is allocated to the credits to be extended via other banks," the statement said.

The Turkish lira equivalent of $5 billion of the aforementioned total limit can also be used for rediscount credits in Turkish lira, it added.

Loans will be extended to net exporter firms with an export amount that is at least 10% more than their import amount in the last three years or the last year and they can only be used for payments of the specified expenditures in Turkish lira.

Credit repayments will be made only with export proceeds.

The maximum maturity of credits has been updated to 180 days from 240 days, the bank said, adding for credits that are extended to finance exports to new markets, exports of high technology products, and foreign exchange earning services, the maximum maturity will remain as 360 days.

The changes will become effective from Oct. 1, 2021.