REGULATIONS

‘EXPORT RISK INSURANCE’ TO BOOST EXPORTS

A comprehensive austerity package is being prepared for exports, which is estimated to contribute 0.8% to Turkey’s growth in 2018. The package includes measures such as facilitating state aid and increasing Eximbank resources, as well as developing ‘exchange rate risk insurance’ to prevent sudden cost changes for companies due to exchange rate fluctuations.

As Mehmet Kaya of daily DUNYA reports from Ankara, in the system defined as exchange rate risk insurance, a simpler system is considered instead of derivative tools (such as a future, forward option) that export and import companies do not often use. The system is supposed to be formed in a structure that promises to meet the loss that would arise if the exchange rate of the product sold by the exporter drops. The insurance mooted in the new package will not include companies that make sales to the domestic market through imports.

A series of administrative improvements will also be made during the 2018-20 period to facilitate exports. According to actions listed in the medium-term program, the halal certification and accreditation infrastructure will enable exporters to diversify their markets. The e-export strategy will begin to be implemented for electronic trading, which offers advantages such as selling products of small companies and facilitating entry into new markets.

The government has decided to support internet infrastructure and logistics services for e-export in this area. It is planned to provide public support especially for the logistics channel. Among the facilitation measures in the medium-term program will be a ‘One Stop Export’ system, which is defined as the possibility of coordinating customer discovery, logistics and payment processes from a single location in an electronic environment.