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ARTICLE · 27 APRIL 2022

Capital Movements Circular Clarifies Loan Repayment In A Different Currency

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The Central Bank of Republic of Turkey revised Article 19 of the Capital Movements Circular (the "Circular"), in which the general principles of disbursement of loans from abroad were unclear regarding currency.

TurkeyFinance and Banking
Muhsin Keskin
Muhsin Keskin
Büşra Cavas
Büşra Cavas
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The Central Bank of Republic of Turkey revised Article 19 of the Capital Movements Circular (the “Circular”), in which the general principles of disbursement of loans from abroad were unclear regarding currency. The Circular was revised in line with the letter dated April 14, 2020 No. 1130224 issued by the Ministry of Treasury and Finance and clarified the following points:

  • Foreign exchange loans extended from abroad can be disbursed or repaid in a foreign currency or multiple foreign currencies other than the foreign currency specified in the loan agreement.
  • In cases where the loan is utilized or repaid in a foreign currency that is different than what is specified in the loan agreement, the currencies will be converted using the Central Bank's cross exchange rates on the date of transfer. 

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