İHKİB and TGSD, Textile Sector in the EU Warns Against Crisis Risk

Istanbul Textile and Apparel Exporters’ Association (IHKIB) Hikmet Tanriverdi Chairman of the Clothing Manufacturers Association of Turkey (TGSD) Chairman Cem Negrin, the EU against the risk of financial crisis by stimulating the sector, noted the importance of the use of export insurance.

A joint written statement on the issue, the financial crisis in Europe, 80 per cent of exports of the Turkish clothing industry in this region, the open account method, indicating an extremely negative influence firms’ export insurance or letter of credit application for the tragic consequences karşılaşmamaları were needed to pass.

Turkish clothing sector experienced a busy period of order, but the euro area, claims the financial crisis highlighted sokabileceği danger, according to the year 2010 from January to November period, exports of apparel and clothing increased by 9.3 percent over the same period of last year was U.S. $ 13.2 billion. By the end of the apparel and garment exports are expected to be around U.S. $ 14.5 billion.

The statement was included in the following views:

’Trying to European buyers open account method. Letter of Credit, any guarantee for the payment of this export is not in question. Therefore, in case of any crisis, the problem of European companies to pay their debts çıkarınca, Turkey, bankruptcies, layoffs be experienced as painful results. 90 percent of our apparel exports to European countries on account of $ 11.5 billion, while the remaining 10 per cent do this by using letters of credit. In other words, an export of over U.S. $ 10 billion are done without the slightest guarantee of collection.

Today, companies that make purchases at the point in how powerful they are, to live in countries affected by financial crisis, surely. Therefore, the sector should be more careful. The tragic events that occur eliminate potential risks and live the removal of our companies to export new orders, insurance claims or offered a letter of credit are cautioned not to use the road. "