Exporter who saw death agreed to malaria

Exporters who could not access credit for a long time have obtained more financing opportunities with Eximbank. However, this time, the high interest rates of the credits make things difficult. This is still much better than no credit at all... Bloomberg Businessweek Turkey's news... Tightening policies on one hand, high interest rates on the other... Exporters are in a tight spot in accessing finance to produce and export amid tightening policies. Rediscount credit interests provided by Eximbank are determined at a rate of 35 percent. The interest rate on credits provided by private banks is 55-60 percent. Exporters sometimes state that their daily interest rates on credits provided by private banks have reached up to 65-70 percent. In particular, the never-ending credit procedures, interest rates reaching 55-60 percent and the fact that the credits are not activated are among the first complaints voiced. Expressing that difficult days await Turkish industrialists for the next six months, TOBB Ready-to-Wear and Apparel Sector Assembly President Şeref Fayat states that if cash flow becomes such a bottleneck, many companies will declare bankruptcy. “With the newly announced Central Bank (TCMB) decision, access to credit has begun to be provided, albeit at a high cost. However, the gap between Eximbank credit interest rates and private banks has widened considerably. While exporters use an Eximbank rediscount credit that does not exceed 35 percent, they encounter interests of 55-60 percent in private banks and even 65-70 percent in daily variable interest rates,” says Şeref Fayat and continues: “On the other hand, the limits of collaterals that are valued with inflation are becoming insufficient. Therefore, another such impasse is emerging. The limits on collaterals need to be re-evaluated. In this case, a difficult 5-6 month period awaits industrialists.” Since the TCMB and the economy administration came to power, rediscount credit limits have been increased 10 times. The daily rediscount credit limit, which was 300 million liras until mid-July, was first increased to 1.5 billion liras on July 25, and then to 3 billion liras on September 12. At the same time, during the limit increase, the CBRT emphasized that the share of SMEs in the use of rediscount credits will continue to be increased and export performance will continue to be taken into account. However, the limit increases were not enough to solve the exporters' problems. Şeref Fayat stated that in addition to all these, the spread between the interest rates of private banks and Eximbank has widened too much, and said, "Although the daily TL rediscount credits were recently increased from 300 million liras to 3 billion liras, i.e. 10 times, even this limit is not enough. Markets are having great difficulty finding credits with suitable interest rates in cash flow."