Turk Eximbank aims to expand interest-free banking

ANKARA

Turk Eximbank is making significant strides in interest-free banking to better support exporters, with General Manager Ali Güney announcing plans to diversify the bank’s financing and insurance products in line with interest-free banking principles.

"Our goal is to increase the share of interest-free banking products in Eximbank's support to 10% in the first phase," Güney stated.

Recognized as Türkiye's official export support institution, Turk Eximbank has aligned its offerings with the principles and standards of interest-free banking, following amendments to the banking law by the Banking Regulation and Supervision Agency (BDDK), enabling development and investment banks to conduct interest-free banking transactions.

An advisory committee dedicated to supervising these efforts was established in 2022. Additionally, Turk Eximbank modeled a new system after global examples to distinguish interest-free banking activities from traditional operations, including accounting and other business processes.

Through its interest-free banking framework, Turk Eximbank offers financial support for exporters, covering needs such as working capital and investment expenses. These funds are secured through partnerships with organizations like the Islamic Development Bank, Emirates Islamic Bank and the International Islamic Trade Finance Corporation (ITFC).