Turkey Amends FX Loan Amounts for Renewable Energy Projects

Recent Development

The Capital Movements Circular was amended to change the total amount of FX loans Turkish residents can borrow for financing renewable energy projects with state guarantee and made under the framework of the Law No. 5346 on the Use of Renewable Energy Resources for the Purposes of Generating Electricity.

What Does the Amendment Say?

Prior to the amendment, the amount of the FX loans utilized could not exceed the product of the generation amount set out in the borrower’s license and subject price (including local support price) within the scope of YEK Support Mechanism (YEK Destekleme Mekanizması), calculated for eight years.

Following the amendment, the FX loan to be utilized will not exceed 80% of the product of the generation amount set out in the borrower’s license and subject price (including local support price) within the scope of YEK Support Mechanism (YEK Destekleme Mekanizması), calculated based on the remaining period of the state guarantee.

Conclusion

The ceiling of FX loans to be utilized for renewable energy projects is now updated.