US Loan Adds Steam to Turkish Railways’ Modernization

Eximbank announced that TCDD would be able to both buy locomotive items from General Motors and modernize its railway equipment with this loan.

The bank indicated that it gave guaranteed credit of $86.8 million to General Motors so that the company could modernize the Turkish locomotives and sell other necessary items to TCDD. Since some of the parts are produced in Canada, The Canadian Export Development bank will supply a counter credit guarantee to Eximbank. Therefore, the total amount of the loan from both banks is $91.5 million.

"Turkey will be able modernize the locomotives while at the same time contribute to American products and work force," said Eximbank President Philip Merrill.