Amendments to the Capital Movements Circular Regarding the Utilization of Foreign Currency Loans for Financing Renewable Power Plants

Pursuant to the letter of the Ministry of Treasury and Finance dated 02.03.2026, amendments were made to the provisions of the Circular on Capital Movements (Circular) regulating the use of foreign currency loans for the financing of renewable energy projects. By removing the foreign currency revenue requirement, the amendments aim to facilitate the utilization of foreign currency loans by Turkish-resident legal entities for the financing of renewable power plants.

Within this context:

(i) With the amendments made to Articles 21/15(a) and 40/15(a) of the Circular, to further clarify the exemption, the phrase “financing of investments related to renewable energy resources” under the scope of foreign currency loans that may be utilized without the foreign currency revenue requirement has been replaced with “financing of power plants”,

(ii) Prior to the amendments, the exception to the requirement of foreign currency revenue for the utilization of foreign currency loans under Articles 21 and 40 of the Circular was subject to certain date restrictions. Accordingly it was required that the first phase of investments without a licence requirement be completed by 2018, and that the investments requiring a licence be operational by July 2021. Such restrictions have been abolished with the recent amendments. To benefit from the foreign currency revenue exemption, borrowers are required to submit the Renewable Energy Resources Certificate (YEK Certificate) or a production license for licensed power plants, and a Connection Agreement for unlicensed power plants, to the intermediary bank,

(iii) The limitation on the maximum amount of foreign currency loans for renewable power plants remains unchanged, however, where the Renewable Energy Resources Support Mechanism (YEKDEM) price is denominated in Turkish Lira, the maximum amount of the foreign currency loan shall be calculated based on the Central Bank of the Republic of Türkiye’s foreign exchange selling rate on the disbursement date.