Industrialists and exporters express that there are serious problems in Turk Eximbank’s credit resources and ask for measures to be taken for a solution.
Industrialists who participated in the Bloomberg HT broadcast expressed the view that exporters need foreign exchange and therefore restrictions should be eased.
The assessments of exporters and industrialists on this matter are as follows:
Uğur Dalbeler, Vice-Chairman of the Board of the Association of Steel Exporters:
The confusion created by subsequent decisions creates funding problems. There are problems in both export financing and working capital. Although there is a severe contraction in demand around the world, the environment for competition should be eased. We import 80% of 60% raw material for production. Due to the exporter’s need for foreign exchange, the restrictions should be relaxed.
Bülent Aymen, President of the Association of Mediterranean Exporters of Furniture, Paper and Forest Products:
After the BRSA and CBRT statements, there is a serious problem in accessing credit. Eximbank loans are almost closed. For real exporters, exchange restrictions should be lifted. We are in great difficulty in maintaining production and working capital. Export is still a moving sector, when you limit it, serious problems arise.
Şeref Fayat, President of the Assembly of the TOBB apparel and ready-to-wear sector:
There are certainly problems. We observe that banks require different applications and documents when applying for the same type of loan. We can say that this has blocked the markets, which have suffered much more liquidity crisis before the holidays.
It is very difficult to achieve both rediscounted and spot credits, which will be the lifeblood of exporters. There have also been banks that have claimed that they have completely closed their access to credit because they did not fully understand it.
We live in an age where the world talks about recession; in other words, there are serious problems in our export markets. In Turkey’s new economic model, exporters earning foreign currency in particular should be guaranteed access to finance without the slightest problem. At this time when we are having difficulties in price stability, we may also have to deal with it in markets where we are having difficulty selling goods.
While Eximbank should actually provide this financing to exporters with much simpler and easier applications, let’s quit our regular job and try to understand the financing practices. In the absence of financing in difficult markets, very negative developments in export performance could occur.
Erdem Cenesiz, President of the Turkish Federation of Ceramics:
We think these problems stem from concerns that the loans made will go into foreign currency. Therefore, banks, including Eximbank, closely scrutinize them and lend more restlessly. We can understand it; However, we believe that a system, including Eximbank, where loan payments can be made against invoices or pay slips, should be implemented as soon as possible. It is obvious that there is a decrease in appetite, a caution in lending. Many of our members are sending us this message.
If the funding problem is not resolved, capacity utilization for new investments may remain low.
Murat Akyüz, Chairman of the Board of Akyüz Plastik:
The recent sudden changes in Turkey have caused our exporters and producers to focus more on financing. Companies are trying to secure financing by mortgaging all their properties, land and buildings to banks. On the other hand, most of our industrialists are now out in the open again, as all studies are based on TL and there are drastic changes in the exchange rate.
Unfortunately, on closer inspection, most of the loans managed through CBRT and granted through Eximbank are currently not sufficiently accessible. Businesses suffer from this problem.
On the other hand, the 40% issue is a separate issue. The plastics industry is one of the secondary branches of the chemical industry. It is a serious cost to change incoming money and convert it back into foreign currency. For example, an additional cost of around $ 800 occurred in a $ 110,000 transaction in my own company. None of our competitors have such compulsions.
There has been talk of a recession in the United States, and the slightest recession could have much greater effects in Turkey. It would be helpful for us to pay close attention to all of these.