İsmail Gülle, Chairman of the Turkish Exporters Assembly (TİM), made predictions about exports. In a TV program he participated in, he stated that exports would reach $260 billion by the end of the year.
The Turkish economy has taken a solid stance during the Covid-19 pandemic, which has shaken the global economy. Turkey’s exports increased by 32.8% in 2021 compared to the previous year and reached $225 billion 291 million. Gülle stated that the diplomatic move that started under the leadership of President Erdoğan further strengthened the exporters. They are exporting to the USA, United Arab Emirates, and Israel with commercial delegations. In other words, there are positive developments in the Turkish export world.
Exports broke a record in seventeen of nineteen months. While sharing his year-end expectations, Gülle emphasized that the targets will be exceeded in 2022. “In 1970, our exports were 1 billion dollars. In the late 80’s it was $10 billion. Then, $20 billion in the 90s. In the 2000s, it was $30 billion. Today we are talking about 250 billion dollars. In March, our exports from year to year reached 235 billion dollars. So, it will only take us 3 years to move to triple digits. In 2023, Turkey will reach 300 billion dollars.”
3,000 Applications to JSC
Gülle also made important emphasis on the Export Development Joint Stock Company (JSC). It aims to expand the access to finance of exporters of goods and services through credit guarantees and surety applications. Türk Eximbank and TİM established JSC as partners. JSC, which started its operations on March 1, has received 3,000 applications so far. Up to 10% of the applications were used for loans. JSC’s equity support package provides loans to SMEs having difficulty in accessing finance, through sureties.
JSC is only available to exporters. It is a fund that aims to eliminate the collateral problem in exporters’ access to finance. Thus, exporters will not have to mortgage their factory and land to the bank to get a loan. In other words, the bail problem will disappear.
The company emerged on October 14, 2021, with a capital of 10 million Turkish liras. TİM has a 95 percent (₺9 million 500 thousand), and Eximbank has a 5 percent (₺500 thousand) share. In the future, other exporting unions will be joining the company. Law studies continue for 61 exporters’ unions to become partners with the company with the necessary capital contribution.
JSC works in line with its export-oriented growth model target. It operates as a specialized fund for companies dealing with export and foreign exchange earning services. As a result, it will increase the export volume. It will do this by spreading exports to the base.
Additional Capital Contribution
Certain deductions are made from export transactions carried out through exporter associations. The company will transfer these deductions to the company’s capital. Therefore, JSC will have an additional capital contribution. As a result, it will ensure that the HDI is in a consistently strong financial structure. It will also create a self-renewing capital structure. By doing all these, JSC aims to provide continuous and effective service to exporters.
The Ministry of Trade plans to remove the obstacles in front of the exporter with these efforts. It also consolidates its position in existing markets. It mobilizes its opportunities for all kinds of initiatives that will serve the purpose of entering new markets.
Increase in Exports of Agricultural Products
Among the issues that Gülle evaluated was the increase in the export of agricultural products. He responded to the comments that the increase in exports caused a rise in prices in the domestic market.
He stated that only 10 percent of the total production in agriculture was exported. “Our fresh fruit and vegetable production is 55 million tons per year. I asked the chairmen how much of it we export. Only 8 percent of it. In other words, we export a figure of 4.5 million tons. Let’s take, for example, tomato exports. We have 13 million tons of tomato production. We are exporting 1.2 million tons of it. That is about 10 percent.”
He pointed out that an export figure of 250 billion dollars was on the carpet. “We need to look at the magnitude of it. We export only 10 percent of agricultural products. Thus, we should not harm this great value in exports over the prices of some agricultural products.”
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