Syndicated loans: Republic of Turkey example 2000-2006

This thesis serves to the purpose of describing the syndicated loans that have been an important international funding source for Turkish banking system since 1980s and of investigating the implementation side in detail as well as the theory. Within the frame of structural analysis, their place in international loan market, their advantages, disadvantages and situation in front of the alternative funding resources are examined in addition to their secondary market. An analysis of the Turkish banking sector?s syndicated loans between 2000-2006 is realized. Their position along with the fundamentals of economy such as growth, investment, current account deficit, dolarization and short position of foreign exchange is discussed.Syndicated loans are basically defined as the loans in high amounts granted to a company, bank or country over a predetermined maturity and interest rate by a consorsium of several banks. They are of great importance since they mean low cost funding to the borrower and risk sharing to the lenders. In a country such as Turkey that the current account deficit is considered as ``achilles? heel?? of the economy, aforesaid loans are particularly valuable since they have the strength to finance 40 percent of the deficit in 2006.In this thesis, where practically valuable issues such as their taxation, accounting and determining the clauses of agreement are examined, pricing and its determinants are among the main focal points. Moreover, being a development bank, Turk Eximbank?s syndicated loans amounting to 2 billion USD in total in the aforesaid period and their pricing in comparison to some deposit banks? are included to the analysis. It is stated that the share of these loans in Turk Eximbank?s sources which is 63 percent in 2006 will increase as long as the global liquidity and economic stability are ensured. The same ascertainment is also valid for the whole Turkish banking system.