The Communiqué Amending the Communiqué on Maintenance of Turkish Lira-Denominated Securities for Foreign Currency Liabilities and the Communiqué on Required Reserves Were Published

The Communiqué Amending the Communiqué on Maintenance of Turkish Lira-Denominated Securities for Foreign Currency Liabilities and the Communiqué Amending the Communiqué on Required Reserves (together referred to as “Amendment Communiqués”) were published in the Official Gazette dated 20.08.2022 and numbered 31929.

Some of the important amendments made by the Amendment Communiqués are summarized below:

• The Communiqué on Maintenance of Turkish Lira-Denominated Securities for Foreign Currency Liabilities is retitled as the Communiqué on Securities Maintenance (the Communiqué on Securities Maintenance).
• İller Bankası, Türkiye Kalkınma ve Yatırım Bankası A.Ş. and Türkiye İhracat Kredi Bankası A.Ş. are left out of the scope of the Communiqué on Securities Maintenance.
• For loans extended between 20.08.2022 and 30.12.2022, securities will be maintained based on 20% of the loan amount to be extended at an annual compound interest rate between 1.4 and 1.8 times higher than the Central Bank of Republic of Turkey (“CBRT”) -released annual compound interest rate; 90% of the loan amount to be extended at an annual compound interest rate 1.8 times higher than the CBRT-released annual compound interest rate.
• Required reserves maintenance, which was applied as 20% for loans subject to required reserves, was replaced with 30% securities maintenance requirement. For this purpose, pursuant to the Communiqué on Required Reserves, the required reserves ratio for assets subject to required reserves are set at 0% for banks and 20% for financing companies. The rate for assets subject to security maintenance has been determined as 30%. Turkish lira-denominated cash loans of which the procedures and principles are determined by the CBRT are included among the assets to be subject to security maintenance.