FX Borrowing Ban Softened
Contents
Recent Development
The Central Bank of the Republic of Türkiye (the “CBRT“) introduced amendments to the Capital Movements Circular (the “Circular“) on November 4, 2025 introducing a new exception to the foreign currency borrowing restrictions.
What’s New?
- Before the amendment, public institutions and organizations were able to freely borrow foreign currency loans from domestic or international sources.
- With this newly introduced exception, in addition to public institutions and organizations, legal entities that are jointly controlled or under the control of public institutions and organizations (the “Legal Entities That Are Under Public Control“) may now freely borrow foreign currency loans from both domestic and international sources.
- Legal Entities That Are Under Public Control wishing to borrow loans in foreign currency must submit to the intermediary bank, trade registry gazettes or official documents evidencing that they are under the joint control of or controlled by a public institution or organization.
Conclusion
This amendment introduces a new exception to the foreign currency borrowing restrictions.
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