Exporters in distress due to recalled loans
Güncelleme Tarihi:
by Ayten Güvenkaya - Referans
Oluşturulma Tarihi: Şubat 11, 2009 00:00
ISTANBUL - Turkey’s sixth largest export company, GİSAD, has become stuck between a rock and a hard place after investment bank Morgan Stanley recalled a loan worth $200 million.
Morgan Stanley sent notification to some global customers of GİSAD that was established in 1997 with 49 shareholders from the textile and garment industry. Morgan Stanley requested companies pay the bank directly instead of GİSAD. Some customers of the firm are said to have complied with the notice and made their payments directly to Morgan Stanley.
"Do not make exports through GİSAD or you may take a risk," İbrahim Özdoğan, the firm’s chairman, reportedly told producers during a meeting last week. Some manufacturers are said to have started to export on their own.
Collecting money
Being unable to collect money from customers may create a major burden for the 200 partners, 850 members and thousands of suppliers of GİSAD. Furthermore, global brands’ making payments directly to Morgan Stanley has made it impossible for GİSAD to receive value added tax refunds. If this situation is prolonged members and suppliers of GİSAD may have to close their shops.
GİSAD is working to overcome the problem with Morgan Stanley, according to Özdoğan. "We have blocked the efforts made by Morgan Stanley. I will hold a press conference to reveal more on the issue."
GİSAD acts as a bridge between the domestic textile and ready to wear manufacturers, and global brands. Obtaining export costs from foreign brands, GİSAD gets value added tax refunds and cuts the commission fee of 1 percent before sending the amount onto domestic producers.
After 2000, having become the top exporter for four consecutive years, GİSAD facilitates 16 percent of Turkish ready to wear exports. The company has 200 partners, 850 members and thousands of suppliers. GİSAD’s annual exports total $2.4 billion and posted an export volume of $150 million last month.
"Do not make exports through GİSAD or you may take a risk," İbrahim Özdoğan, the firm’s chairman, reportedly told producers during a meeting last week. Some manufacturers are said to have started to export on their own.
Collecting money
Being unable to collect money from customers may create a major burden for the 200 partners, 850 members and thousands of suppliers of GİSAD. Furthermore, global brands’ making payments directly to Morgan Stanley has made it impossible for GİSAD to receive value added tax refunds. If this situation is prolonged members and suppliers of GİSAD may have to close their shops.
GİSAD is working to overcome the problem with Morgan Stanley, according to Özdoğan. "We have blocked the efforts made by Morgan Stanley. I will hold a press conference to reveal more on the issue."
GİSAD acts as a bridge between the domestic textile and ready to wear manufacturers, and global brands. Obtaining export costs from foreign brands, GİSAD gets value added tax refunds and cuts the commission fee of 1 percent before sending the amount onto domestic producers.
After 2000, having become the top exporter for four consecutive years, GİSAD facilitates 16 percent of Turkish ready to wear exports. The company has 200 partners, 850 members and thousands of suppliers. GİSAD’s annual exports total $2.4 billion and posted an export volume of $150 million last month.