Includes how major projects are financed and gives examples where relevant. Explains activities of the multilateral development banks in and other aid-funded projects where procurement is open to U.S. bidders.
Last Published: 6/20/2019

Project financing is available through a multitude of sources including Turkish and foreign commercial banks as well as investment banks.  The Export-Import Bank of the United States (EXIM) and the Overseas Private Investment Corporation (OPIC) are two sources for project financing for U.S. investors.  Interested U.S. companies should note that American banks active in Turkey are among the leaders in project financing.

While Turkey is undergoing an economic correction, the country continues to offer some major project opportunities in telecommunications, energy, transportation, and building of infrastructure projects such as dams, airports, harbors, roads, and water and sewerage systems.  Supplier financing is often the key to winning these large projects. EXIM Bank financing, along with OPIC and United States Trade and Development Agency (USTDA) programs, are available to U.S. suppliers.  The European Bank for Reconstruction and Development (EBRD) and the World Bank /International Bank for Reconstruction and Development continue to fund major projects in Turkey.

EXIM is the official export credit agency of the United States.  It is an independent, self-sustaining Executive Branch agency with a mission of supporting American jobs by facilitating the export of U.S. goods and services.  When private sector lenders are unable or unwilling to provide financing, EXIM can fill the gap for American businesses by equipping them with the financing tools necessary to compete for global sales.  In doing so, EXIM levels the playing field for U.S. goods and services in overseas markets.  Turkey and EXIM signed a co-financing agreement for projects in third countries in April 2016. 

OPIC has established small business centers to assist qualified small businesses in utilizing OPIC’s resources with improved customer service and easier access through a streamlined approval process.  OPIC stands ready to assist small and medium-sized business to grow through investments in over 160 emerging markets around the world.  The Small Business Centers support the financing and political risk insurance needs of eligible small businesses.

To support small and medium-sized business enterprises in their international trading activity, the U.S. Commercial Service and OPIC entered into a partnership that combines the strength of the U.S. Commercial Service’s suite of services with the investment finance and political risk insurance support of OPIC.

Leasing issues and licenses are regulated via BDDK.  Presently there are 23 leasing firms in Turkey.  Currently they can only offer leasing and are not allowed to make any other financial transactions.  There are no limits on foreign investment or international leasing firms provided they obtain a license to operate in Turkey from BDDK.

Leasing terms are four years or, in exceptional cases, two years.  The equipment leased is owned by the leaser after the period of the lease.  A definite advantage of the leasing process is the VAT reduction from 18% to 1% during the leasing period.

Multilateral Development Banks

The U.S. Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including the European Bank for Reconstruction and Development and the World Bank.  These institutions lend billions of dollars in developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development.  The Commercial Liaison Offices help American businesses to engage in bank-funded projects as well as advocate on behalf of American bidders. Learn more by contacting the Commercial Liaison Offices to the European Bank for Reconstruction and Development and the World Bank.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.