AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 5 September 2014, the Saudi Fund for Development (SFD), signed three financing agreements with Turkish banks. The agreements have a total value of USD 145 million and include the Turkish banks, Bank Asya and ING Bank. The credit line is funded through SFD's Saudi Export Program (SEP) and will finance Saudi Arabian exports of various goods and services. A similar financing agreement was signed with a number of the above Turkish banks in 2012, see related measure No. 12642.
The Saudi Export Program
The Saudi Export Program (SEP) is part of the Saudi Fund for Development and was established in 1999. The program promotes Saudi exports to contribute the country's GDP and minimize the economic dependence of crude oil. In promoting export of Saudi goods the SEP can support 100% of the value of the eligible export transaction depending on risk and nature of the export. In general the value of exported good/service must contain a Saudi domestic value of 25% or more as well as the transaction having a minimum value of SAR 100,000 (approx. USD 26,666). Additionally, parties benefiting from the SEP fall into one of the following: Saudi companies and establishments; foreign companies, entities or governments importing or purchasing of Saudi goods or services; or lastly local or foreign banks and financial institutions.
The Saudi Fund for Development
The Saudi Fund for Development (SFD) was established by Royal Decree No. M/48 of 1 September 1974. The Fund's main objectives are to: 'participate in financing of development projects in developing countries through granting of loans to said countries and to encourage national non-crude-oil exports by providing finance and insurance in support of such exports.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
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