Financing Your Export Business to Turkey

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Financing Your Export Business to Turkey
Toronto, October 7 2004
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• 1- macroeconomic data
• 2- public sector
• frequent opportunities
• 3- private sector
• numerous possibilities
• 4- SG in Turkey
• 5- Conclusion

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1 - Macroeconomic Data

• OECD (5 instead of 6) January 2004
• Privatisation in Progress (TUPRAS,..)
• SP BB- Moodys B1
• GDP Growth
• 2002 7.8
• 2003 5.9
• Total External Debt/ GDP
• 2002 72
• 2003 61

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Foreign Trade
Distribution of Imports
Imports 32 of GDP
Main suppliers for Capital Goods
Distribution of the Capital Goods
Total Amount 7.69 B USD
Source CEPII 2001
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• Sector of Economic Activity
• Energy , privatisation of the sector
• Transportation , numerous investments
• Services, health and water treatment
• Defence , internal financing
• Others ...

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2 - Public Sector, opportunities and
particularities

• State-owned Corporations, TCDD, DSI, DLH,
  Municipalities
• Priorities defined by the S.P.O. in connection
  with the MOF
• State Guarantee absolutely necessary but less
  availability due to IMF constraints
• Companies that could be privatised Turktelekom,
  TUPRAS, THY, ...
• Large contracts gt 100 M , significant local
  parts
• Numerous Multisource contracts
• ECAs open if guaranteed by the state.

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3 - Private sector possibilities opportunities

• Dynamic and very diversified
• Large groups KOC, SABANCI, ALARKO, DOGUS, etc.
• Good Standing and less known companies
• ECAs open on case-by-case
• Guaranteeing banks, AK Bank, IS Bank, Garanti,
  etc.
• Importance of signing quality commercial
  contracts.
• Type of financing still unfamiliar to the buyers.

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4 - Société Générale in Turkey

• Fully operational bank licence since 1990 (14
  years). The most important French bank in Turkey
  in terms of balance sheet and salaried employees
  (50 people).
• Eric Faivre, Director (90.212) 319.34.00.
• Two contacts in Export Finance
• Selma Somer (90.212) 319.34.20
• Gaye Dernek (90.212) 319.34.21
• Trade commodity finance activity, commercial
  banking, foreign exchange trading, .

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Best Export Finance Arranger

• Ranked by Trade Finance magazine
• 8 Deals of the Year awarded in 2003
• SG CIB is the only bank to have been nominated 10
  times among the top 3 over the past 10 years, and
  number 1 for the third consecutive year

• Ranked by Global Trade Review
• 1 Best Deal in 2002 2003

No third place in 1999
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SG CIB is active in the main Export Credit
Programs
US Eximbank (USA)
COFACE (France)
ECGD (UK)
EDC (Canada)
OND (Belgium)
GIEK (Norway)
HERMES (Germany)
Finnvera (Finland)
EKN (Sweden)
EKF (Denmark)
ODL (Luxembourg)
ATRADIUS (Netherlands)
JBIC/NEXI (Japan)
KEIC/KEXIM (Korea)
SINOSURE (China)
EFIC (Australia)
CESCE (Spain)
SACE (Italia)
OeKB (Austria)
EGAP (Czech Rep.)
ERG (Switzerland)
SEC (Slovenia)
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Public Insurers position (ECA) in Turkey
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5- Conclusion The keys to success in Turkey

• Public operations
• Private sector operations
• Municipalities
• Local share financing

• Confirm the support of the state in the form of
  the signature of the corporate contract

• Uncover the right corporates
• Local bank guarantees

• Remains a challenge today
• A key point

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SGs EXPORT FINANCE TEAM