DECISION ON THE REPEAL OF RESTRICTIONS ON TURKISH LIRA LOANS AND REDUCTION RATES OF EXPORT PROCEEDS TO BANKS
The Banking Regulatory and Supervision Agency (“BDDK”), by its decision dated 6 February 2025 and numbered 11145 (the “New Decision”), has repealed its previous decisions, including those dated 24 June 2022 and numbered 10250, 7 July 2022 and numbered 10265, 21 October 2022 and numbered 10389, and 4 September 2023 and numbered 10659 (the “Repealed Decisions”).
The Repealed Decisions imposed Turkish Lira (TRY) loan restrictions on companies subject to independent audit that held foreign currency cash assets exceeding TRY 15,000,000 (approx. EUR 400,000). Specifically, if the foreign currency assets of such companies (based on the most recent financial statements) exceeded 10% of their total assets or the net sales revenue of the previous year, they were restricted from using TRY cash commercial loans.
Subsequently, pursuant to Decision numbered 10389, with effect from 1 November 2022, BDDK reduced the above-mentioned threshold amount from TRY 15,000,000.- to TRY 10,000,000 (approx. EUR 250,000) and the percentage of foreign currency assets from 10% of the total assets or the net sales revenue of the previous year to 5%, unless contrary decision to be issued by BDDK.
Accordingly, with the issuance of the New Decision, all the aforementioned decisions and the restrictions set forth therein have been repealed. As a result, the New Decision lifts the restrictions previously imposed on the use of Turkish Lira cash commercial loans by companies subject to independent audit, regardless of their foreign currency cash assets.
Besides, the Ministry of Treasury and Finance issued an amendment to the Export Circular with a letter dated 2 January 2022. The amendment introduced through Additional Article 1, is concerning the sale of export proceeds to the Central Bank of the Republic of Türkiye (“TCMB”) as outlined in the Ministry’s letter dated 28 February 2025 and numbered 3815300.
Starting as of 3 March 2025, the amendment mandates that at least 25% of the export proceeds, for which an Export Profit Acceptance Certificate or Foreign Exchange Purchase Certificate is issued, must be sold to the bank from which the document was obtained.
The bank shall subsequently transfer these proceeds to TCMB on the same day, utilizing the exchange rate announced by TCMB and applicable for the transaction date. The corresponding amount shall be credited to TCMB’s account, and the bank shall disburse the full equivalent of the amount to the exporter in Turkish lira currency.
The exchange rates for export proceeds have been applied as follows over the years:
(i) 25% from 3 January 2022 to 17 April 2022;
(ii) 40% from 18 April 2022 to 10 June 2024;
(iii) 30% from 11 June 2024 to 2 March 2025; and
(iv) 25% as of 3 March 2025
Therefore, the rates determined as 40% and 30%, respectively, have been reduced to 25% as of 3 March 2025 and it is another sign of more flexibility towards foreign currencies.
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