Sun. Jun 16th, 2024

Exporters Receive Major Relief as Foreign Exchange Obligation Reduced: New Policies Announced by Finance Minister

By Haberyaz Jun8,2024

Finance Minister Mehmet Şimşek has announced a significant reduction in the mandatory foreign exchange conversion rate for exporters, lowering it from 40% to 30%. This new regulation will take effect starting Monday. Şimşek conveyed his best wishes to exporters and affirmed that both the Treasury and Central Bank are actively exploring various solutions to enhance financing opportunities for exporters, continuously introducing new incentives.

In the past year, Eximbank’s capital has been bolstered by an increase of 22 billion Turkish lira, bringing its total equity to 70 billion lira. Şimşek revealed that, as of 2023, a total of $42 billion has been provided to exporters through Eximbank.

To address guarantee issues, the Export Credit Guarantee Company has provided guarantees totaling 78.4 billion lira to date. Recent regulations have also seen the daily limit for rediscount credits rise tenfold to 3 billion lira.

Additionally, the corporate tax rate for exporters has been reduced by 5 points to 20%. Income exemptions for service exports such as architecture, engineering, design, and software have been increased from 50% to 80%.

Furthermore, Şimşek highlighted the expansion of investment pre-finance loans to boost high-value exports. Focusing on 284 products that contribute to the trade deficit, investment projects valued at 1 billion lira or more will be prioritized. He also emphasized stronger support for high-tech and strategic production investments.

These measures, sourced from the Ministry of Treasury and Finance, are seen as pivotal steps and substantial supports for exporters.

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