An analysis of commercial bank loans and Turk Eximbank products in export finance

Export provides foreign currency to a country by selling goods or services to another country or to foreign markets. Supporting export by exporting more than importing in the country to prevent having foreign trade deficit is going to contribute to national economy. Export has a significant effect in developing countries. Countries that are exporting tends to develop more than enclosed economies. Also countries supporting foreign trade have higher production and employment rates. To lead businesses export more, countries are using incentive supports. Commercial banks might give affordable interest rate loan to businesses for promoting to export more. State supports commercial banks and goods and services helping to get more foreign currency in response to credits by exempting KKDF and BSMV. Also, state might provide incentives under the control of non-profit institutions. These incentives are done with the help of an institution called 'Eximbank'. Eximbank has a crucial task to finance exporting. In Turkey, Turkish Eximbank is supporting firms formally about financing. Generally, these supports are insurance for exporting, guarantee and credit functions. Eximbank is giving credits and recently, one of the credits given is exporting credit. Turkish Eximbank is doing this lending process by assuring. Also Eximbank is financing firms based on non-cash collaterals taken by commercial banks or by Eximbank's own exporting insurance. 7 Within this study, cost of commercial banks' credits and cost of Turkish Eximbank's short maturity credits have been examined. This study consists of three chapter. First chapter is about concept of credit, finance of exporting and export-supporting institutions. In the second chapter Turkish Eximbank, its history, its products and worldwide Eximbanks have been examined. Lastly, third chapter focused on cost of commercial banks' short maturity credits and cost of Turkish Eximbank short maturity credits. As a result of this study, Turkish Eximbank credit's cost advantage explained by numbers. Also, it is considered in the study that Eximbank ought to take the risk of these credits and commercial banks' task as a financial intermediary for Eximbank credits should end.