Türkiye - Long Term Export Finance Guarantee Project

Overview & Synopsis

Ratings of the Long Term Export Finance Guarantee for Turkiye were as follows: outcome was satisfactory; Bank performance was satisfactory; M&E quality was high. Key lessons and recommendations are as follows: the International Bank for Reconstruction and Development guarantee instrument can effectively mobilize private capital in upper middle income contexts by extending maturities and reducing costs, and designing flexibility into transactions—such as allowing multiple facilities over an extended timeframe and enabling lenders to complement the guarantee with private insurance—can help navigate market volatility; transitioning from traditional credit lines to more market-based, leveraged instruments enables more precise targeting of viable but underserved groups, including women-inclusive firms and new exporters, while reinforcing the countercyclical role of an export credit agency during periods of heightened risk aversion; building stronger capacity to manage evolving environmental and social risks is critical, particularly through a robust Environmental and Social Management System (ESMS), early deployment of dedicated Occupational Health and Safety (OHS) expertise, and systematic staff training on due diligence, incident reporting, and investigations; and for clients new to guarantee operations, it is important to allocate sufficient time and legal expertise to structure complex commercial financing documentation and to ensure smooth execution and subsequent debt servicing.