Recent Development
The Central Bank of the Republic of Türkiye ("CBRT") introduced amendments to the Capital Movements Circular ("Circular") on January 16, 2025 introducing a new exception to the foreign currency borrowing restrictions.
What's New?
Turkish residents undertaking defense industry projects approved by the Presidency of Defense Industries have been permitted to borrow in foreign currency from both domestic or international sources.
The CBRT has introduced another exception for defense industry regarding restrictions on foreign currency borrowing. With this newly introduced exception, companies that have (A) and (B) level certificates under the Industrial Competence Evaluation and Support Program (EYDEP) of the Presidency of Defense Industries will be able to borrow in foreign currency loans from both domestic and international sources.
Companies wishing to borrow in foreign currency loans by taking advantage of this exception must submit the intermediary bank a stamped and wet-signed document evidencing (i) that they have an (A) or (B) level certificate issued by the Presidency of Defense Industries within the scope of EYDEP, (ii) the date the certificate was issued and (iii) the validity date of the certificate.
Conclusion
This change introduces a new exception to the foreign currency borrowing restrictions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
