CBRT hikes export, forex earning services rediscount loan limit
Turkey’s central bank on Friday announced changes in the conditions for utilization and repayment of rediscount loans for export and foreign exchange earning services.
The total limit for rediscount loans for export and forex earning services will be increased to $30 billion from the start of next month, the Central Bank of the Republic of Turkey (CBRT) said in a statement.
“Of this limit, $20 billion is allocated to the credits to be extended via the Export Credit Bank of Turkey (Türk Eximbank), and $10 billion is allocated to the credits to be extended via other banks,” it 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 only to firms that have exported 10% more than the amount they have imported in the last three years or the last year, it said.
The maximum maturity of the loans was lowered to 180 days from 240 days, the bank said, adding that the maximum maturity on loans to finance exports to new markets, exports of high technology products and forex earning services remains 360 days.
The changes will take effect on Oct. 1.