AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 23 October 2015, the Turk Eximbank and the Mongolian Khan Bank LLC, signed a USD 20 million Trade Finance Loan Agreement. The core scope of this Agreement is to provide financing to Mongolian companies that import Turkish consumer and capital goods in their alma mater country i.e. Mongolia. Furthermore, the Agreement also aims to support Turkish exporters trading with Mongolia. Specifically, the Turkish Exim Bank will provide short-term loans aimed at financing 100% of the import/export contract - these short-term loans will have a maturity of 24 months or less. Furthermore, the Turkish Exim Bank will also provide long-terms loans aimed at financing 85% of the import/export contract - these loans have a matuirty of + 24 months. The remaining 15% related with these long-term loans will be financed either by Mongolian buyers or the Khan Bank. Lastly, the repayment period for these loans is up to two years i.e. 24 months for consumer goods and up to 10 years for capital goods.
Türk Eximbank is a state-owned bank. The Turk Eximbank represents the major export incentive instrument of the government of Turkey. Consequently, Türk Eximbank has been mandated to support foreign trade and Turkish contractors/investors operating overseas.
Khan Ban is the largest commercial bank in Mongolia.
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