ECO Capacity Exchange |

The ECO solution is a global innovation in trade and financing that can help countries achieve specific economic and social goals.

What is the ECO Capacity Exchange?

The ECO Capacity Exchange unlocks unused or idle capacity as an alternative asset class to create new buying power. It uses capacity, an illiquid asset, as the basis for a new source of credit, income and profit.

Our Exchange is a global marketplace where companies can buy and sell goods and services. Trades are settled using the ECO (Enterprise-backed Credit Obligation), a private, independently-administered, fully-backed global medium of exchange and unit of account.

A stimulus for the Turkish economy

Trading in ECO can provide stimulus to the Turkish economy promoting increased domestic trade activity and economic growth.

Increase exports
- Exports have stalled, contributing to a widening of the trade deficit which is expected to reach $55.2bn in 2016 and $71.8bn by 2018
Reduce unemployment
- At 11.3%, Turkey’s unemployment rate has reached its highest level since 2010
Respond to long-term issues raised by the IMF
- In addition to projecting a continued rise in unemployment in its 2016 World Economic Outlook report, IMF urged Turkey to find a long-term solution to the country’s economic and financial vulnerabilities. These include high external financing needs, weak capital flows and need to boost growth and domestic saving.

How the ECO solution can help

Using ECO can help Turkey facilitate trade and social development by:

Stimulating trade flow and enhance macroeconomic performance
Unlocking incremental sources of export-led demand
Transforming existing capacity into a new source of low-cost credit and buying power
Promoting sustainable socio-economic development
Accelerating execution of the Turkish Ministry of Development’s 10^th Development Plan

The ECO solution could offer support to Turkey in three key ways:

Assisting delivery of large-scale infrastructure projects

ECO Capacity Exchange provides a non-banking, capacity-backed source of credit that relies on underlying capacity assets as the basis for the issuance of interest-free funding
Countries rich in “real economy” commodities such as Turkey, can avoid more expensive forms of financing by pledging a portion of their nation’s resources to back the ECO loan
Use ECO on the exchange for sourcing materials or services required for large-scale infrastructure projects
An ECO loan to Turkish state-owned enterprises could fund major infrastructural projects in Africa, Middle East and Latin America
Supplement existing infrastructure financing models and reduce the overall funding requirements of a given project

Improve corporate returns by extending ECO credit to state-owned companies

Companies owned by the Turkish government can access a complementary ECO sales and procurement channel. By trading on the Exchange, state owned companies can:

Create new sources of demand and achieve incremental sales by unlocking new sources of demand that are not constrained by availability of cash
Turn capacity into purchasing power and exchange unused capacity for goods and services from other members
Improve financial performance
Obtain a competitive advantage by accepting payments in ECO, in many instances bypassing tendering processes by accessing new sources of demand through the ECO marketplace
Maximise operating efficiency by optimising utilisation and asset turnover
Reduce the need for cash by creating alternative sources of financing directly from capacity

Fund government procurement

Reduce reliance on capital market debt financing without depleting government reserves
Access efficient marketplace for procuring goods and services

Benefits of trading on the Exchange

Improve financial performance by accessing new sources of demand through the ECO marketplace
Obtain competitive advantage by accepting payments in ECO, in many instances bypassing tendering processes
Maximise operating efficiency by optimising utilisation and asset turnover
Reduce the need for cash by creating alternative sources of financing directly from unused or idle capacity