Istanbul: Trkiye has been recognized as the fourth largest participant in the International Finance Corporation's (IFC) Global Trade Finance Program (GTFP), underscoring its strategic position in global trade as a pivotal export and import center that connects Europe with Asia and the Middle East.
According to Anadolu Agency, Wiebke Schloemer, the IFC Director for Trkiye and Central Asia, revealed that Trkiye was ranked as the 28th largest exporter worldwide in 2023, maintaining this status in 2024 with an unprecedented export volume of $262 billion. This remarkable feat is attributed to sectors such as machinery, mechanical appliances, equipment, and precious stones and metals. Schloemer also noted the significant contributions from the Turkish automotive sector, alongside traditional industries like textiles and agriculture, which continue to bolster Trkiye's trade performance.
Schloemer emphasized the importance of global trade as a driver of economic growth, increased productivity, and job creation. She pointed out that nations with strong trade links experience considerable progress in improving living standards. In Trkiye, a World Bank study indicates that importers and exporters witness higher productivity growth compared to non-importers or non-exporters. Furthermore, studies show that increased trade openness and export activities in Trkiye have significantly contributed to job creation, especially in manufacturing and export-oriented sectors, with internationally trading firms creating more jobs than those focused solely on the domestic market.
While global trade has grown by an average of 5% annually over the past three decades, the demand for trade finance, particularly in emerging markets, has outstripped supply. The global trade finance gap is estimated to have expanded to approximately $2.5 trillion. Schloemer highlighted that with an estimated 80% of global trade reliant on financing, trade finance is crucial, especially in developing countries. A large portion of global trade is financed by intermediary banks, with the GTFP playing a vital role in bridging the trade finance gap.
By expanding access to trade finance, IFC and other multilateral development banks actively support cross-border trade, fostering economic development and sustainable growth worldwide. The GTFP, a risk mitigation program, recently marked its 20th anniversary, having facilitated $120 billion to date by sharing risks with international and regional banks. The program aligns with strategic priorities such as food security, job creation, climate change, and gender equality, with most beneficiary firms located in International Development Association (IDA) countries. Notably, one-third of GTFP activities are in agriculture and food, and 40% are concentrated in Africa, highlighting its role in addressing key development challenges.
Data from the World Trade Organization shows that Trkiye's exports and imports peaked in 2023, accounting for 1.08% and 1.3% of global merchandise trade, respectively. These figures demonstrate Trkiye's active involvement in global trade and the necessity for robust trade finance solutions. Trkiye currently ranks as the fourth-largest participant in IFC's GTFP, reinforcing its position as a major player in global trade within emerging markets. The network of issuing banks in the GTFP has expanded from one bank in 2009 to 11 banks in 2025, representing one of the largest numbers of banks from a single country within the GTFP network, reflecting Trkiye's increasing engagement with trade finance.
Schloemer noted that the IFC provides crucial support to banks, especially in uncertain environments, highlighting that access to such support is essential during changes in credit ratings, macroeconomic and regional developments, or global events like the pandemic. By offering full or partial unfunded guarantees against trade-related payment obligations, the IFC has reinforced its commitment to supporting trade in Trkiye, as evidenced by the increased availability of trade finance lines and the extension of tenors when needed. The continued growth of IFC's network in Trkiye further underscores this dedication, ensuring that trade finance remains accessible and robust.
She also highlighted the significance of the GTFP limit for Trkiye's banking system, particularly during periods of tight monetary policy. Participation in the GTFP network allows issuing banks to expand their correspondent banking network, improve access to funding to support trade activities, and offer longer tenor facilities to finance capital equipment. In cases of de-risking, the GTFP footprint is invaluable to banks to mitigate its impact, ensuring the continuity of trade flows and bolstering Trkiye's broader economic landscape.
Participating banks (PBs) form a growing segment of Trkiye's banking sector, engaging in a wide range of banking activities and offering both import and export services related to trade finance. Currently, there are nine PBs regulated by the BRSA, collectively accounting for 8.7% of total banking assets. The government has set a target to increase the share of PB assets to 15% by 2025. Given the increasing prominence of PBs and the critical role trade plays in Trkiye's economy, where trade accounts for 66% of GDP, it is a logical step to extend IFC's conventional GTFP facilities to PBs.