The Banking Regulatory and Supervisory Authority's
(“BRSA”) decision in Turkey, dated July 7th,
2022 and numbered 10265, regarding the restrictions on
commercial loans denominated in TRY has been amended by the
BRSA's new decision dated October 21st, 2022 and
numbered 10389.
With this amendment, the BRSA has taken a new macro
precautionary measure that has tightened the loan market.
Accordingly, effective of November 1st, 2022,
non-financial Turkish legal entities, which are subject to
independent audit and have foreign currency assets exceeding TRY 10
million, are prohibited from utilizing commercial cash loans
denominated in TRY in case their foreign exchange assets exceed 5%
of their net assets according to their most recent financial
statements or their net sales revenue of the latest financial
year.
