Over the past two years, Turkey has faced challenging times, including the financial crises of November 2000 and February 2001, and finally, the Iraq War this year. However, the economic reforms implemented have been remarkable, and despite everything, the economic fundamentals have proven to be sound and sustainable.
Inflation, which has been a burden on the economy for over two decades, suffered a historic drop. In 2002, with the implementation of a tight monetary policy, inflation reached 29,7%, and in 2003, the government and the central bank aim to reach 20%. This level is achievable given the swift resolution of the Iraq War, the recovery of the lira, and stable oil prices.
Despite political changes and concerns about the risk of having to deal with the consequences of the war, the Turkish economy recovered during the first quarter of 2003, reaching a growth rate of 4-5%.
The AKP government is committed to the IMF support program, a key factor in building confidence in the domestic economy and among international investors. The government expects the central government's primary budget surplus, as defined by the IMF, to increase by 0,6% of GNP, reaching 6% of GNP by the end of 2003.
1. What services does the bank offer to exporting businesses?
2. Do you have any agreements with entities that operate in Spain?
3. What are the main financial services aimed at foreign investors and exporters?
Garanti Bank, leader of the Turkish financial market
1. Garanti Bank is a leader in the financial market with a 15% market share. We offer the best services to our clients regarding commercial transactions, with an export share of 16% and an import share of 13%.
Our presence and reputation in international markets, with over 2.000 correspondents worldwide, includes branches in Luxembourg, Malta, and Bahrain; offices in Shanghai, Moscow, Düsseldorf, and London; and two subsidiaries in Russia and the Netherlands. This allows us to offer our clients a wide range of access to the international market. Thanks to this network, Garanti Bank has never let its clients down, not even in times of crisis.
We have a unit of financial advisors who offer all the information on laws, regulations and legal processes that clients need in their international operations.
Furthermore, we strive to leverage the synergies between our financial groups to help exporters increase their business volume. One example of this is the agreement signed between Garanti Seguros and COFACE to insure cash on export documents. Another example of our services is Garanti Factoring, which guarantees and finances receivables from our clients' exports.
2. Economic relations between Turkey and Spain date back to the 60s. With the liberalization period in Turkey, bilateral relations between the two countries have increased. By the end of 2002, Spain had become Turkey's tenth largest trading partner in imports and its seventh largest in exports.
Garanti is a bank active in international markets and has always been linked to the most important Spanish banks, with whom we have special agreements to cooperate in ECA transactions with CESCE coverage.
3. Garanti Bank is a market leader in financial services through Garanti Securities, Garanti Leasing, Garanti Portfolio Management and Garanti Payment Systems.
Our bank also provides securities custody and settlement services to non-resident foreign investors.
In addition to daily commercial transaction services, issuance and discounting of letters of credit, there are also ECA businesses, a good example for exporters interested in our market. Their main function is to boost exports in the countries where they are located. CESCE, for example, by providing financing to importers from foreign countries, helps increase the export volume of local firms, as well as providing guarantees for ECA transactions. Regarding this type of transaction, Garanti Bank offers advisory services to determine credit facilities for buyers and distributors.
Akbank offers specific services to exporters
1. Akbank provides financial solutions and banking services to 1.555 large corporations, as well as more than 350.000 SMEs. Our services include loans in Turkish lira and foreign currencies, medium-term financing for investments and international trade, factoring, and letters of credit, among others. Furthermore, upon request, the bank provides solutions that enable clients to manage their capital through accounting services, including those specifically designed for the collection of invoices and checks, liquidity management, and information.
Akbank is a very active bank in the financial industry and the transactions we carry out are letters of credit, cash collection, documents or checks, in addition to handling import transactions guaranteed by export credit agencies.
The "My Company" product line provides a wide range of services for small and medium-sized enterprises (SMEs) aiming to become the strongest in their sector. We support these companies through the "My Company Expands Abroad" loan for international trade operations.
We cooperate with the Chamber of Commerce and the Exporters Association to educate companies on issues and technicalities related to foreign trade.
2. Akbank has an extensive network of bank branches, including major Spanish banks. We are very pleased with our relationships with our subsidiaries. In this regard, several Spanish banks have participated in our corporate lending facilities. We handle import and export transactions, including letters of credit, cash collection, documents, project financing, and euro accounts with some of Spain's most prestigious banks, benefiting from their debt collection services.
Finally, we cooperate in factoring businesses with several Spanish companies.
3. Foreign exporters can benefit from Akbank's services in many ways. Our branches are connected to International Trade Centers authorized to handle foreign trade transactions. The Foreign Operations Group carries out all document and cash collection services with the utmost professionalism.
Finally, both exporters and foreign companies operating in Türkiye can open accounts at our bank in Turkish lira or any foreign currency.
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