Despite a crisis in German-Turkish relations last year and several threats to cut government-provided export credits, Germany has financially secured significantly more exports to Turkey. The scope of the Hermes guarantees grew by almost one-third to around 1.46 billion euros, a report by German news agency dpa said yesterday.

An older dpa report previously claimed that the German government had capped the amount of the Hermes export guarantees it provides for trade with Turkey at 1.5 billion euros in September last year. The upper limit had already been set so high that it was well above the guarantee amount of around 1.1 billion euros from the previous year.

Speaking to dpa regarding the figures, left-wing parliamentarian Alexander Neu said the cap on the Hermes guarantees was in reality not a sanction.

"The federal government does not even think about affecting economic relations with Turkey," he added. The Hermes guarantees provide the German government protection for German companies when foreign debtors fail to pay. In 2016, more Hermes guarantees were granted only for Russia, Egypt and the U.S. Approximately 6,900 German companies operate in Turkey, while bilateral trade volume hovers at around 37 billion euros.

According to the German Ministry of Economy, the foreign direct investment (FDI) from Germany to Turkey between 2002 and May 2017 exceeded $9 billion, placing it sixth among the top 20 countries investing in Turkey. The FDI from Germany, which generally invests in energy, insurance and manufacturing sectors, composes at least 6.3 percent of the total FDI in Turkey.

In late June last year, German Foreign Minister Sigmar Gabriel said the federal government would review its export guarantees to Turkey following allegations that the Turkish government launched an investigation into German firms operating in Turkey on the grounds of aiding and abetting terrorism. The accusations were rebuffed by Turkish authorities, who ensured the safety and security of the operations of German companies on several occasions.