Removal of the Foreign Currency Cash Assets Threshold for Turkish Credit Utilization

In response to companies acquiring foreign currency by using Turkish lira loans despite having no foreign currency debt or liabilities, and in some cases, even holding a surplus in their foreign currency position, the Banking Regulation and Supervision Agency (“BRSA”) had set a foreign currency cash assets threshold for independently audited companies seeking to obtain Turkish lira loans, through its decision dated 24 June 2022 and numbered 10250 which was subsequently updated by the decision dated 21 October 2022 and numbered 10389 (the “Decision”).

According to the Decision, companies subject to independent audit under Decree Law No. 660 and related regulations were restricted from accessing new Turkish lira cash commercial loans if their foreign currency cash assets (including gold, foreign currency holdings, and foreign currency deposits in banks) exceeded TRY 10 million and if the Turkish lira equivalent of these assets exceeded 5% of either their total assets or net sales revenue for the past year.

However, this restriction has now been repealed by the BRSA’s decision dated 6 February 2025 and numbered 11145. Accordingly, companies that were previously subject to the restriction can now obtain Turkish lira loans regardless of the amount of their foreign currency cash assets.

For more information on the decision and its impact on your company or business, please contact your CMS partner or local CMS expert: Dr. Döne Yalçın and Alaz Eker Ündar.