The Banking Regulatory and Supervisory Authority’s (“BRSA”) decision dated 07.07.2022 and numbered 10265 regarding the restrictions on commercial loans denominated in TRY has been recently amended by the BRSA’s new decision dated 21.10.2022 and numbered 10389.
By the amendment, the BRSA has taken a new macro precautionary measure that has tightened the loan market. Accordingly, effective from 01.11.2022, non-financial Turkish legal entities, which are subject to independent audit and have foreign currency assets exceeding TRY10m are prohibited from utilizing commercial cash loans denominated in TRY in case their foreign exchange assets exceed 5% of the higher of their net assets determined according to their most recent financial statements or their net sales revenue of the last financial year.
The previous thresholds on the foreign exchange assets under the BRSA’s decision dated 07.07.2022 and numbered 10265 were TRY15m and 10%.
