- Region: The Middle East
- Machinery and Equipment
- Export Loans
September 27, 2005
- Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) signed a loan agreement today on buyer's credit *1 totaling seven billion yen with Enka Pazarlama Ihracat Ithalat A.S., a corporation in the Republic of Turkey. The loan is co-financed with ABN Amro Bank N.V., Tokyo Branch.
- This loan will set up a credit line for Enka Pazarlama Ihracat Ithalat A.S., a company that imports and sells industrial machinery such as construction equipment, to meet its financial need for continued purchase of industrial machinery from Japanese firms. The loan will financially support exports of industrial machinery from Japan. Enka Insaat ve Sanayi Anonim Sirketi, the parent company of Enka Pazarlama Ihracat Ithalat A.S., will act as a guarantor for this loan. This will be the first time that JBIC relies on the Turkish private firm's credit to provide a loan.
- Making the economic crisis of 2000 and 2001 a thing of the past, the Turkish economy has been on a stable growth path. The country's trade volume, including its trade with Japan, has been showing an increasing trend,*2 and the business opportunities for Japanese firms are expanding in Turkey. Taking advantage of the bustling Turkish economy, and the rapidly growing demand for industrial machinery in particular, JBIC has decided to help secure chances for Japanese firms to receive export orders by providing a credit facility to Enka Pazarlama Ihracat Ithalat A.S., a close trading partner of Japanese firms that is affiliated with the Enka group primarily engaged in power generation and construction.
- In 2004, JBIC had also set up an export credit line to Turkiye Is Bankasi A.S., the largest private bank in Turkey. Through these lending efforts targeting the private sector in Turkey, JBIC will support exports of Japanese firms for the coming years.
- *1 Buyer's credit is a financial instrument extended directly to an importer in the receiving country to finance the purchase of machinery and equipment from Japan.
- *2 Export value from Japan to Turkey stood at 161.2 billion yen in 2003, and 207 billion yen in 2004. Foreign Trade Statistics, Japanese Ministry of Finance.