An Amendment Has Been Made to Capital Movements Circular

17.02.2022
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Article 38/2 of the Capital Movements Circular published by the Turkish Central Bank on 02.05.2018 (“Circular”) has been amended with the letter of Ministry of Treasury and Finance dated 08.02.2022 and numbered 940051. The introduced amendment is summarized as follows:

Pursuant to the amended version of the Article, to provide foreign currency loans within a group of companies of the same holding, additional conditions are required. In this respect, the transaction (i) must occur between the group companies, between those of which one has a surplus of funds and the other has a shortage of funds, and (ii) should be done for the purpose of depositing the corresponding amount in foreign currency.

Moreover, under the amended Article, it is prohibited to use the funds obtained by using a foreign currency loan, for a loan to another group company or to a company of the same holding.

You may find consolidated text of the relevant Circular here (Turkish).

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