- Region: The Middle East
- Machinery and Equipment
- Export Loans
January 6, 2012
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on January 5 in Istanbul a loan agreement for arranging an export credit line*2 in the amount of up to 7.5 billion yen (JBIC portion) with Enka Pazarlama Ihracat Ithalat A.S. (Enka Pazarlama), a company incorporated in the Republic of Turkey. The loan is cofinanced with Sumitomo Mitsui Banking Corporation (SMBC), with Nippon Export and Investment Insurance (NEXI) providing Buyer’s Credit Insurance for the SMBC-financed portion. The overall cofinancing loan amounted to 15 billion yen.
- Based in Istanbul, Turkey, Enka Pazarlama is a regional enterprise importing and selling construction equipment and other industrial machinery. Since 2005, JBIC has provided several credit lines*3 to finance Enka Group for purchasing construction machinery and other equipment from Japan. This loan is a follow-on of these credit lines, and will be used by Enka Pazarlama to purchase construction machinery etc. from Japan.
- From time immemorial, Turkey has prospered as a key junction of traffic that provides linkage to Europe, the Middle East, North Africa and Central Asia. Today, when compared with the member countries of the EU, whose membership Turkey is applying for, the country ranks 6th in GDP by size, following the Netherlands. In fact, Turkey freed itself relatively early from the grip of the global crisis that broke out in the fall of 2008. The country’s real GDP grew by 8.9% in 2010 on a year-on-year basis, indicating its robust economic potential driven primarily by domestic demand. In recent years, Japanese firms have been paying increasing attention to Turkey, focusing on personal consumption and infrastructure demand, among other fields. Turkish Deputy Prime Minister Ali Babacan, upon his visit to Japan last December, expressed hope for further deepening economic ties with Japan, including trade and investment.
- JBIC will continue to actively support exports of machinery and equipment as well as overseas business development by Japanese firms by drawing on its various financial facilities and schemes for structuring projects and performing a risk-assuming function.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 An export credit line is a form of export credit in which JBIC makes a commitment of a certain amount of money as a loan to a foreign bank or other entities to finance exports of machinery and equipment from Japan.
- *3 JBIC extended credit lines to Enka Pazarlama and/or its subsidiary, Metra Akdeniz Dis Ticaret A.S., in September 2005, March 2007 and July 2008. See Press Releases dated respectively: September 27, 2005; March 16, 2007; and July 10, 2008.