ARTICLE · 17 JANUARY 1997

Foreign Investments In Turkey

Birsel Law Offices

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TurkeyStrategy

I. LEGISLATION:

The legislation governing the Foreign investments in Turkey can be summarized as follows:

1. RELEVANT LAWS AND BILATERAL AND MULTILATERAL AGREEMENTS:

a. Law Concerning the Encouragement of Foreign Capital (No. 6224 dated January 18,1954 as amended by law No. 4046 dated November 24,1995 and Law 4105 dated April 27, 1995)("Law 6224")basically granting equal treatment to foreign capital vis-a-vis domestic capital (Article 10), repatriation rights to foreign investors enumerating the types of foreign capital to be invested in Turkey and prohibiting majority shareholding to foreign investors in ventures having country-wide monopoly activities.

b. Law Concerning the Protection of the Value of Turkish Currency (Law 1567 dated February 20, 1930 as amended ), governing foreign exchange regime of Turkey. Both of these Laws authorize the Council of Ministers to issue Governmental Decrees for regulating; (i) Foreign Investments in form of equity , (ii) Foreign Loans, (iii)

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