Trying to recover from the currency shock in 2018, the Turkish
financial markets are open for business in 2019 stimulated by
governmental intervention in the form of changes in the withholding
tax rate and the introduction of the Framework Agreement regarding
financial restructurings in Turkey. Our newsletter highlights these
recent regulatory developments of interest as well as the
proliferation of the "Covenanted Eurobond" in Turkey.
Withholding Tax Change -Early Bond Repurchases
Pursuant to a recent Presidential Decree, the withholding tax
rate on interest income derived from bonds issued by Turkish
resident companies outside of Turkey has been decreased to 0% for
bonds 'with a maturity of more than 3 years' (before 21st
of March 2019, it was 5 years).
