The BRSA's Decision on Credit Restrictions in Turkish Lira Has Been Repealed
The decision of the Banking Regulation and Supervision Agency (“BRSA”) dated 24.06.2022 and numbered 10250 (the “Decision”), along with subsequent additional decisions, imposed restrictions on the use of Turkish Lira loans by companies that exceeded specified thresholds of foreign currency assets.
With the latest regulation, companies subject to independent audit under Decree-Law No. 660 and relevant regulations, excluding banks and financial institutions, were previously restricted from obtaining new cash commercial loans in Turkish Lira if, as of their loan application date, their foreign currency cash assets (including gold, physical foreign exchange, and foreign currency deposits in banks) exceeded the equivalent of 10 million Turkish Lira, and if these assets accounted for more than 5% of either their total assets based on their most recent financial statements or their net sales revenue of the last 12 months, whichever was higher.
With the BRSA's decision dated 06.02.2025 and numbered 11145 (the “Amended Decision”), the Decision and the additional decisions issued in relation to it have been repealed to strengthen financial stability and ensure the effective functioning of the credit system.
Under the Amended Decision, the reporting obligation requiring independently audited companies to submit quarterly reports to banks on their foreign currency assets when using or being deemed to have used a loan has been abolished.
Furthermore, the restrictions on the use of Turkish Lira loans by independently audited companies have been removed, allowing them to access credit without regard to their foreign currency asset positions.
The content and materials published on this website are provided for informational purposes only and should not be used as a legal opinion in any way. This website and the information contained are not intended to establish an attorney-client relationship.
Successful