International Logistics Distribution Networks and Trade Show Venue Construction Support Included in Prefinancing Scope
Forex - Foreign logistics distribution networks and exhibition area construction support are now included in the pre-financing scope.
In a statement made by the Ministry of Trade, it was noted: "To reduce the financial burden on companies and increase their credit capabilities, a pre-financing system is being implemented, providing financing and collateral opportunities for companies that receive preliminary approval/approval for project/program/status-based support programs managed by the Ministry of Trade.
On September 26, 2022, a protocol was signed between Türkiye Export Credit Bank Inc. (Türk Eximbank) and Export Development Inc. (İGE) to provide pre-financing opportunities and collateral support for exporters. With an additional protocol signed on May 12, 2023, the definitions of companies in the original protocol were expanded, and the "Market Entry Certificate Support" was also included with another additional protocol signed on May 21, 2024.
With the protocols signed to date, companies that have received preliminary approval/approval for Market Entry, Global Supply Chain, Design and Product Development Projects, as well as Brand and TURQUALITY® and E-Turquality (IT Stars) Programs, Export Consortiums, and E-export Consortiums can apply for pre-financing from Türk Eximbank within the framework of the protocol conducted between the Ministry of Trade, Türk Eximbank, and İGE.
With the new additional protocol, expenses related to foreign logistics networks (YLDA) projects managed by the Ministry of Trade and projects for the construction of exhibition areas are now included in the pre-financing scope. In this context, firms that receive approval for YLDA projects and exhibition area construction support will benefit from financing and collateral opportunities.
The aim is to ensure the effective and comprehensive flow of exports and to enable our exporters to penetrate international supply and distribution chains more quickly and competitively. To achieve this, the Decree No. 5449 on "Support for Foreign Logistics Distribution Networks" was enacted on April 20, 2022, and published in the Official Gazette No. 31815. Under the Foreign Distribution Networks (YLDA), five projects have been implemented, including two in America and three centered in Europe.
With this Decree, foreign logistics networks, a crucial component of the supply chain, are considered as an entire system, receiving support at different stages, thus continuously sustaining exports in significant markets and expanding infrastructure opportunities. This way, it aims to reduce delivery times to under 24 hours, lower freight costs, enable quick customs clearance, and improve customer satisfaction and brand awareness through accurate return logistics, allowing Turkey to stand out in competitiveness with high-quality, fast, value-added service delivery.
EXHIBITIONS INCLUDED IN PREFINANCING
The exhibition sector plays a significant role in converting countries' productions into exports. Exhibitions contribute to strengthening commerce in countries while also reshaping global trade.
Considering Turkey's potential in the exhibition sector, there is a clear need for the construction of large-scale exhibition areas in our country. Under the Decision No. 5448 on the Definition, Classification, and Support of Service Exports, implemented by the Ministry of Trade, "support for exhibition area construction" is offered. With this support, activities such as the construction of exhibition areas, area expansion, restoration, or renovation are supported, aiming to increase international participation in fairs held domestically and deemed appropriate by the Ministry of Trade.
By including exhibitions within the pre-financing scope, it is expected that Turkey will have the quality and quantity of exhibition areas capable of hosting foreign participants at international fairs, thereby increasing the industry's direct and indirect contributions to the country's exports and enhancing our competitiveness in the international arena."