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Legal Alerts
11/09/2021 https://www.esin.av.tr/wp-content/themes/esin/images/esin.jpg

New Exemption to FX Loan Restrictions

Legal Alerts
Banking & Finance
General

Recent Development

The Capital Movements Circular introduced a new exemption to FX loan restrictions.

The amendment allows the Technology Development Foundation of Turkey (Türkiye Teknoloji Geliştirme Vakfı) to extend FX loans from its funds received from the Ozone Projects Fund. The loans can be extended to Turkish residents meeting certain criteria set out in the grant agreements and are subject to the terms and conditions thereof.

What’s New?

  • The transfer and repayment of loans must be made through Turkish banks.
  • The loan amount is included in the borrower’s FX balance.
  • Intermediary banks will be required to notify Risk Center regarding the current FX balance of the borrower.

Conclusion

The amendment incentivizes the use of the funds under the Ozone Projects Fund.