The Amendments on the Circular on Capital Movements-I

Articles 21 and 40 of the Circular on Capital Movements (“Circular”), both titled loans that do not require foreign currency income, were amended by the letters of Ministry of Treasury and Finance of Republic of Turkey dated 30.07.2021 and numbered 460972 and 459585.

As per Articles 21 and 40 of the Circular, for foreign currency loans based on probable foreign currency income, foreign currency income at least equal to the amount of the loan, shall be submitted before the intermediary bank within 24 months from usage, or in documented usage, within one month after the end of the terms, at the latest.

Pursuant to the amendments in Articles 21 and 40, in case of force majeure conditions as listed under the Communiqué No. 32 on the Protection of the Value of Turkish Currency (“Communiqué”), time extension shall be granted by the Ministry of Treasury and Finance to the companies that cannot earn possible foreign currency income. Article 9 of the Communiqué shall be applicable for the proof of force majeure. Also, if unforeseeable or justified cases are evidenced though the official records, the Ministry of Treasury and Finance reconsiders and finalizes the requests either for time extension or complete exemption from the requirement to generate foreign currency income.

You may find the full text of the Circular here (Turkish).