Amendment Decree numbered 2018/11185 ("Amendment Decree") on Decree numbered 32 on the Protection of the Value of the Turkish Currency ("Decree"), and Amendment Communiqué numbered 2018-32/46 on the Communiqué on the Decree numbered 32 on the Protection of the Value of the Turkish Currency had been published in the Official Gazette numbered 30312 and dated 25.01.2018. Amendment Decree has been entered in force on 02.05.2018 according to Article 5 of the same. Following these amendments, the Central Bank of the Republic of Turkey (the "Central Bank") published the Circular on Capital Movements ("Circular") on 02.05.2018.
With the enforcement of the new regulation, Turkish residents with no foreign currency income are prohibited from making foreign currency loans, either from abroad or from within Turkey. However, certain exceptions have been stipulated in Article 17/3 of the Decree. As per Article 17/3, the Ministry of Treasury is entitled to determine terms and conditions in relation to foreign currency loans to be utilized by Turkish residents. In this manner, in accordance with Article 21/15/a and Article 40/15/a of the Circular, the Ministry of Treasury has determined that Turkish residents with no foreign currency income shall be able to utilize foreign currency loans from abroad or Turkey to be used in investments in relation to renewable energy resources within the scope of state's guarantee of purchase within the frame of the Law on The Utilization of Renewable Energy Resources for Generation of Electrical Energy numbered 5346 and dated 10.05.2005.
As per Article 21/16 of the Circular for the foreign currency loans from abroad, within the frame of the Law on The Utilization of Renewable Energy Resources for Generation of Electrical Energy numbered 5346 and dated 10.05.2005, it is required that "Renewable Energy Source Document" issued by Energy Market Supervisory Board or the license granted within this scope shall be submitted to the intermediary bank. However, the loan amount to be brokered shall not exceed the final amount, which is calculated from the multiplication of the annual generation capacities registered in licenses and subject price within the scope of Renewable Energy Source Support Mechanism including the local contribution rate for 8 years.
Furthermore, as per Article 40/16 of the Circular for the foreign currency loans from Turkey, within the frame of the Law on The Utilization of Renewable Energy Resources for Generation of Electrical Energy numbered 5346 and dated 10.05.2005, it is required that "Renewable Energy Source Document" issued by Energy Market Supervisory Board or the license granted within this scope shall be submitted to the bank or financial institution which supply loan. However, the loan amount to be brokered shall not exceed the final amount, which is calculated from the multiplication of the annual generation capacities registered in licenses and subject price within the scope of Renewable Energy Source Support Mechanism including the local contribution rate for 8 years.
Please see this link for the full text of the Circular on Capital Movements dated 02.05.2018.
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