State Turk-Eximbank increased its profits by a nominal 84.3 per cent to TL 464,900 million ($10.8 million at end-year exchange rates) in 1994 compared with the previous year. But this represents a real decline after inflation of about 125 per cent for the year is taken into account.

But the institution’s main mission is not higher profits, but raising the level of credits to Turkish exporters, says manager, Ersoy Volkan. It has recently cut its lending rates to Turkish exporters to as much as 200 basis points below the London interbank offered rate (Libor). Turk- Eximbank mainly supports lending to Turkish exporters by Turkish banks on a three-month rotating basis, and in 1994 financed $4,700 million worth of exports.

The institution has sufficient funds at present to continue towards its target of supporting Turkish exports valued at $12,000 million this year, Volkan says. Negotiations with the Export-Import Bank of Japan for a $300 million loan for on-lending to Turkish exporters could be concluded within the next two months, he adds.