Amendments To The Restated Capital Flows Directive

Introduction

The Capital Flows Directive of the Central Bank was restated in 2 May 2018 (the "Restated Directive") following substantial changes to its underlying legislation, namely Decree No 32 on the Protection of the Value of the Turkish Currency.

The changes to Decree No. 32 brought about substantial limits on the ability of Turkish corporations to utilise foreign currency loans, subject to certain quantitative and transaction specific exceptions. These exceptions were later supplemented by additional exceptions introduced by the Restated Directive. One such additional exception introduced in the Restated Directive relates to loans utilised in the context of renewable energy generation projects.