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The Central Bank of the Republic of Turkey has revised Article 19 of the Circular on Capital Movements (the “Circular”), in which the general principles for the disbursement of loans from abroad were not clear in terms of currency. The Circular has been revised in accordance with letter dated April 14, 2020 No. 1130224 issued by the Ministry of Treasury and Finance and clarified the following points:
- Foreign currency loans granted from abroad may be disbursed or repaid in one or more foreign currencies other than the foreign currency specified in the loan agreement.
- In cases where the loan is drawn down or repaid in a foreign currency different from that specified in the loan agreement, the currencies will be converted using the Central Bank’s cross exchange rates on the date of transfer.
The amendment clarified that there are no restrictions regarding the currency to be used when using or repaying loans made from abroad.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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