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Banking Regulation and Supervision Agency
(“BRSA“) with its decision dated
21.10.2022 and numbered 10389, has expanded the restrictions in
relation to the commercial cash loans utilized by companies subject
to independent audit, by decreasing the threshold of holding
foreign currency (FX) cash assets (gold, effective currency, FX
currency cash asset) as of the loan utilisation date from 15
million Turkish Lira to 10 million Turkish Lira and the rate of FX
cash assets from 10 % to 5% of the total FX assets or annual sales
of the company as per its latest financial tables.
At the beginning of the summer of 2022, BRSA has announced these
restrictions over the commercial cash loans utilized by companies
respectively in its decision dated 24.06.2022 and numbered 10250
and decision dated 07.07.2022 and numbered 10265, which was
particularly brought to loosen some of the restrictions brought in
the former decision. As per these decisions, the companies for
using commercial cash loans were obliged to hold FX cash assets
that does not exceed 15 million TL and 10% of their total FX assets
or annual sales as per their latest financial tables.
This time, BRSA, with its new decision, tightened its
restrictions applicable for commercial loan utilisation and
requires the companies to hold FX cash assets not more than 10
million TL and 5% of their total assets or annual sales as per
their latest financial tables in order to be eligible for utilizing
commercial loans.
This new decision of BRSA will come into force as of 01.11.2022
and as per this new decision, the representations and undertakings
regularly obtained from customers relating to their FX assets will
be collected from the customers again as of 01.11.2022.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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