On 13.08.2018, the Banking Regulation and Supervision Agency (BRSA) has announced that a restriction has introduced on the Swap and other similar transactions conducted between the banks operated in Turkey and their foreign counterparties.

Pursuant to the relevant press release, the total amount of Swap and other similar transactions such as spot + forward FX transactions between the local banks and their foreign counterparties, where at the initial date local banks pay TRY and receive FX, should not exceed 50 % of the relevant bank's most recent regulatory capital.

In this regard in the event that the total amount to be calculated daily on consolidated and individual bases for the relevant bank, exceeds 50 % of such bank's most recent regulatory capital; no further Swap or similar transactions may be conducted and previous transaction may not be renewed unless the current excess is eliminated.

Please find the updated full text of the press release here.

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