|
Cash loans |
| |
Turkish Lira Cash Loans |
| |
Revolving Credit
Revolving credit is extended to meet corporate customers' short-term cash requirements. Interest accrues at three-month intervals at rates that vary according to market conditions. The credit account may be closed out entirely or partially at any time before maturity. Revolving credit is subject to Resource Utilization Support Fund excises and banking and insurance transaction tax unless it is extended under an export contract. |
| |
Spot Loans
TSpot loans are extended to meet corporate customers' short-term cash requirements. Both interest and principal are paid at maturity. The interest rate is fixed for the duration of the loan. Spot loans are subject to Resource Utilization Support Fund excises and banking and insurance transaction tax unless they are extended under an export contract.
|
| |
Foreign currency indexed loans
Foreign currency indexed loans are loans that are extended as Turkish liras but whose value is indexed to a foreign currency. Interest rates will depend on the currency type. Both interest and principal are paid at maturity. Both the interest and currency translation gains on these loans are subject to Resource Utilization Support Fund excises and banking and insurance transaction tax. Unlike export credit, there is no associated export obligation |
| |
Discount Credit
Discount/redemption credit is extended to corporate customers that have an extensive portfolio of checks or notes to meet their short-term cash requirements against the discounted value of checks or notes that have not yet fallen due. The interest and charges related to such loans are collected up front and the principal is collected at maturity when the check or note is cashed.
|
| |
Commercial installment credit
Commercial installment credit is extended to meet the needs of merchants and small to medium-sized companies for Turkish lira cash. These loans have fixed-rate interest and are repaid in equal monthly installments.
The following documents are needed when applying for this type of loan: |
| |
|
Evidence of the borrower's trade registration |
|
Balance sheets and income
statements for the two most recent fiscal
years (certified by the borrower's tax office)
|
|
Evidence of the borrower's professional
chamber registration |
|
Signature statement (or specimens) |
|
| |
The same documents are required
of a surety (or sureties).
A general credit agreement must also be signed as
a guarantee for such loans. |
| |
Commercial deposit accounts with an overdraft
These are commercial accounts with an overdraft facility that are designed to meet the short-term cash requirements of merchants and small to medium-sized companies. They are not available to the Bank's corporate credit customers.
The following documents are needed when applying for this type of loan: |
| |
|
Evidence of the borrower's trade registration |
|
Balance sheets and income
statements for the two most recent fiscal
years (certified by the borrower's tax office)
|
|
Evidence of the borrower's professional
chamber registration |
|
Signature statement (or specimens) |
|
| |
The same documents are required
of a surety (or sureties).
A general credit agreement must also be signed as
a guarantee for such loans.
|
| |
Foreign currency cash loans |
| |
Foreign
currency loans
These loans are extended to corporate entities that
are residents of Turkey to finance their exports,
sales and deliveries considered to be exports, and
foreign currency earning activities. Although the
loan and its interest rate are denominated in a
foreign currency, the lending itself is normally
in Turkish lira. (Loans of actual cash foreign currency
are subject to special conditions.) Because these
loans incorporate an export contract, they are not
liable for the Resource Utilization Support Fund
excise or banking and insurance transaction tax.
They are extended on a spot or revolving basis.
|
| |
Spot foreign currency loans
Both the term and the interest rate are determined
in advance and the interest rate is fixed for the
duration of the loan. Both interest and principal
are paid at maturity. |
| |
Revolving
foreign currency credit
Interest on these loans accrues at three-month intervals
for the duration of the loan at rates that vary
according to market conditions. The credit account
may be closed out entirely or partially at any time
before maturity. |
| |
Prefinancing
credit from international sources
These loans are extended to corporate entities that
are residents of Turkey to finance their exports,
sales and deliveries considered to be exports, and
foreign currency earning activities. Both the term
and the interest rate are determined in advance
and the interest rate is fixed for the duration
of the loan. Both interest and principal are paid
at maturity. Because these loans incorporate an
export contract, they are not liable for the Resource
Utilization Support Fund excise or banking and insurance
transaction tax. |
| |
Working
capital loans
These are loans secured through our Bank from international
sources for the purpose of financing a company's
need for working capital. Both the term and the
interest rate are determined in advance. The loan
itself is extended in Turkish liras. These loans
are not liable for the Resource Utilization Support
Fund excise or banking and insurance transaction
tax because they have terms of more than one year.
Both interest and principal are paid at maturity. |
| |
Redemption
credit
These loans are extended to corporate entities that
are residents of Turkey to finance their as yet
undue receivables arising from exports, sales and
deliveries considered to be exports, and foreign
currency earning activities. The interest and charges
related to such loans are collected up front and
the principal is collected when the value of the
documents is paid. |
| Non-cash Credit |
| |
Letters of guarantee
A letter of guarantee or performance bond is a contract
in which the Bank pledges to pay a debt, guarantees
that goods will be delivered, etc on behalf of a
individual or company that is a resident of Turkey.
If the subject of the letter is not duly fulfilled,
the Bank pays the beneficiary the sum of money specified
in the letter immediately and without objection.
Letters of guarantee may be issued in terms of Turkish
liras or some other currency. In return for issuing
such letters, the Bank is paid a commission either
up front or at three-month intervals. |
| |
International letters of guarantee
An international letter of guarantee or performance
bond is a contract in which the Bank guarantees
a non-resident beneficiary the performance of contractual
obligations in international transactions. If the
obligations are not fulfilled, the Bank pays the
beneficiary the sum of money specified in the letter.
In return for issuing such letters, the Bank is
paid a commission either up front or at three-month
intervals. |
| |
Import letters of credit
Import letters of credit are used in import transactions.
The letter, which specifies the nature and value
of the goods, the loading date(s), and the payment
terms etc, is sent by the Bank to the exporter's
bank outside the country and guarantees that the
value of the goods will be paid (in cash or on terms)
to the exporter against presentation of documents
conforming to the terms of the letter of credit.
In return for issuing such letters, the Bank is
paid a commission. |
| |
Acceptance/aval credit
Acceptance credit is a form of non-cash credit that
guarantees import payments on terms. It is generally
used in cash against documents or cash against goods
import transactions. A bill is made out to the exporter
as the beneficiary and is accepted by the importer.
The Bank adds its aval to the bill, guaranteeing
payment to the exporter. In return for its aval,
the Bank is paid a commission. |
| |
Confirmed export letters of credit
This is a letter of credit, issued by a foreign
bank, the validity of which has been confirmed by
our Bank, which assumes the transaction's commercial
and/or political risk. An exporter whose payment
terms are a confirmed letter of credit is assured
of payment by our Bank even if the foreign buyer
or the foreign bank defaults. In return for its
confirmation, the Bank is paid a commission. |
| Buyer Credit |
| |
Nearly every country today has
one or more export credit agencies whose objective
is to support that country's exporters. Some of
the leading ECAs are Hermes (Germany), ERG (Switzerland),
SACE (Italy), and US Exim (USA). Buyer credit is
a way of financing purchases of capital goods with
funds secured from such agencies under our Bank's
guarantee. In transactions of this kind, the usual
practice is to pay 15% of the invoiced amount up
front with the balance (principal and interest)
being paid in equal installment over six months'
time. While financing terms generally range between
three and seven years, they may vary depending on
the ECA, the nature of the goods, the value of the
transaction, and Turkey's country credit rating.
In addition to these export credit agencies,
the Commodity Credit Corporation (CCC), a federally-owned
and operated corporation within the US Department
of agriculture, offers similar programs to finance
purchases of agricultural commodities. Terms of
up to three years are available depending on the
commodity involved.
|
|
Eximbank credit facilities
|
| |
The Export Credit Bank of Turkey
(Eximbank) has put together a number of credit packages
to promote Turkish exports and provide the country's
exporters with low-cost financing opportunities.
This credit is made available to exporters through
banks under an export contract. Credit extended
from Eximbank resources can take advantage of a
number of tax exemptions etc under the Export Incentives
Resolution and its related communiques. Eurobank Tekfen
offers the full range of Eximbank credit facilities.
For further details see www.eximbank.gov.tr. |
| |
|
