Amendments to Decree No. 32

Loan Borrower

Loan Provider

Guarantor/Surety Provider

Recipient

Conditions

Person resident in Turkey

Bank or financial institution resident in Turkey

A group company of the borrower resident in Turkey, or an individual/ legal entity directly holding shares in the borrower

Bank or financial institution resident in Turkey

1) The loan must be denominated in foreign currency or precious metals.

2) The guarantee/surety must be denominated in foreign currency or precious metals.

Decision

New Version of the Article

Definitions

Article 2

Subparagraph (xv) added under clause (j); clause (bb) added to the article.

For the purposes of implementing this Decision: (…)

j) Precious metals: Refers to all types and forms of gold, silver, platinum, and palladium, (…)

xv) Drawn precious metal: Refers to precious metals that have been drawn into a thin strip or cut into various shapes and weights, possessing any level of purity, (…)

bb) Refinery: Refers to legal entities licensed by the Ministry to carry out precious metal refining activities within the framework of the relevant legislation.

Article 3

The phrase “TRY 25,000” in subparagraph (d) has been replaced with “TRY 185,000.”

 (d) The export of Turkish currency exceeding TRY 185,000 shall be carried out in accordance with the principles to be determined by the Ministry.

Foreign Exchange Transactions

Article 6

Paragraphs 7, 8, and 9 have been amended.

(7) The trading of all types of derivative instruments, including forward and option contracts based on foreign currency and precious metals, that are regulated under capital markets legislation, shall be carried out on organized exchanges in accordance with such legislation, by banks and intermediary institutions authorized by the Capital Markets Board.

(8) Provided that the transfer of foreign exchange funds is carried out through banks, the trading of all types of derivative instruments, including forward and option contracts with counterparties abroad, shall be conducted through banks and intermediary institutions located either in Turkey or abroad authorized by the Capital Markets Board. However, provided that financial institutions located abroad do not engage in marketing, advertising, or promotional activities targeting residents in Turkey, derivative transactions carried out by Turkish residents entirely at their own discretion with such institutions are not required to be conducted through banks or intermediary institutions. Nevertheless, fund transfers related to these transactions must still be made through banks.

(9) Leveraged transactions and derivative transactions deemed to be subject to the same provisions as leveraged transactions may only be conducted by persons resident in Turkey through institutions authorized by the Capital Markets Board. No person or entity other than those authorized by the Capital Markets Board may intermediate such transactions, nor may any transfers abroad be made in connection with these transactions. Banks operating under Law No. 5411 on Banking, and payment and electronic money institutions operating under Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions, are required to take the necessary measures to prevent such transactions. For the implementation of these measures, the Capital Markets Board, the Banking Regulation and Supervision Agency (BRSA), and the Central Bank of the Republic of Turkey shall, within the scope of their respective authorities, provide each other with any relevant information upon request, either directly or through the designated system. In the event of any violation of this paragraph, the Ministry shall be notified.

Precious metals, stones, and goods

Article 7

In subparagraph (b) of paragraph four, the term “banks” has been inserted following the word “only.”

A new subparagraph (d) has been added to the same paragraph, and the subsequent subparagraphs have been renumbered accordingly.

In the existing subparagraphs (d) and (e) of the same paragraph, the word “banks” has been added after the term “metals.”

In the existing subparagraph (f), the phrase “and drawn” has been added following the word “minted.”

Additionally, the following subparagraph (g) has been added to paragraph seven of the same article.

(4) The purchase and sale of precious metals, stones, and goods within Turkey shall be carried out in accordance with the following principles:

a) Within Turkey, only the purchase and sale of standard unprocessed precious metals produced by the Turkish Mint, refineries licensed by the Ministry, and foreign refineries listed in the Refineries List published by Borsa İstanbul A.Ş. shall be permitted.

b) Without prejudice to the provisions of their respective regulations, the purchase and sale of standard unprocessed precious metals and minted precious metals within Turkey may only be conducted by banks, refineries licensed by the Ministry, precious metal intermediary institutions, authorized establishments, and jewelry businesses defined in the Regulation on the Trade of Jewelry published in the Official Gazette dated 14 April 2021 and numbered 31454, and authorized by the Ministry of Trade under said Regulation.

c) The sale of non-standard unprocessed precious metals to natural persons resident in Turkey is prohibited, except for jewelry businesses authorized by the Ministry of Trade.

ç) Within Turkey, only minted precious metals produced by refineries licensed by the Ministry and by the Turkish Mint may be bought and sold.

d) Drawn precious metals may not be sold to natural persons resident in Turkey, except for those who are either: jewelry businesses authorized by the Ministry of Trade, or natural persons resident in Turkey whose tax registration indicates that they are engaged in the production or trade of precious metals.

e) It is permitted for persons resident in Turkey to buy and sell standard unprocessed precious metals produced by refineries licensed by the Ministry, foreign refineries listed in the Refineries List published by Borsa İstanbul A.Ş., or the Turkish Mint, from and to banks, refineries licensed by the Ministry, precious metal intermediary institutions, authorized establishments, and jewelry businesses authorized by the Ministry of Trade.

g) The purchase and sale of processed precious metals other than minted and drawn precious metals, as well as precious stones and articles, are permitted within Turkey.

ğ) The purchase and sale of all types and forms of precious metals produced from ore within Turkey shall be carried out on the Exchange in accordance with the principles to be set out in regulations to be issued by Borsa İstanbul A.Ş.

[…]

(7) The Ministry shall be authorized to:

(…)

g) determine the characteristics of drawn precious metals that may be traded within Turkey, as well as the procedures, principles, and exceptions applicable to their domestic trade, and to take any measures it deems necessary.

Securities Article 15

The lettered paragraphs have been renumbered, a new paragraph (5) has been added to the same article, and the subsequent paragraphs have been renumbered accordingly.

(1) The import and export of securities and other capital market instruments are unrestricted.

(2) Except for public institutions and organizations, the sale abroad of capital market instruments to be issued or offered to the public by legal entities resident in Turkey is permitted, provided that such instruments are registered with the Capital Markets Board in accordance with capital markets legislation.

(3) The issuance, public offering, and sale of securities and other capital market instruments in Turkey by persons resident abroad shall be carried out in accordance with the provisions of capital markets legislation.

(4)

i. Persons resident abroad (including foreign investment trusts and investment funds) are permitted to buy and sell all types of securities and other capital market instruments through banks and intermediary institutions authorized under capital markets legislation, and to transfer the income and sale proceeds related to such securities and instruments through banks (...).

ii. Persons resident in Turkey are permitted to buy and sell securities and other capital market instruments traded in foreign financial markets through banks and intermediary institutions authorized under capital markets legislation, and to transfer the purchase amounts of such instruments abroad through banks.

 (5) The trading of all types of derivative instruments, including forward and option contracts, shall be carried out in accordance with paragraph eight of Article 6 of this Decree.

(6) Persons resident in Turkey are permitted to buy and sell leveraged transactions and derivative instruments deemed to be subject to the same provisions as leveraged transactions only through institutions authorized by the Capital Markets Board.

Non-Cash Loans, Guarantees, and Sureties Article 18

Certain grammatical errors have been corrected, paragraph (4) has been added, and the subsequent paragraph has been renumbered accordingly.

(4) Persons resident in Turkey are permitted to provide guarantees and sureties in foreign currency or precious metals to Turkish banks and financial institutions, as collateral for loans denominated in foreign currency or precious metals obtained domestically, provided that such guarantees and sureties are issued by the borrower’s group companies resident in Turkey or by individuals/legal entities directly holding shares in the borrower.

Foreign Exchange Deposit and Gold Custody Accounts

Article 19

The paragraphs have been numbered; the term “gold” in the first paragraph of the same article has been replaced with “precious metal”; certain typographical errors have been corrected; the term “of gold” has been replaced with “of precious metal”; and paragraph (3) has been added.

(1) The Central Bank and banks may open foreign exchange deposit accounts and gold precious metal custody accounts on behalf of persons resident in Turkey and abroad. Account holders may freely dispose of these accounts. The interest rates applicable to these accounts shall be freely determined between the bank and the account holder. The transfer of principal and interest, as well as the return of the gold precious metal, shall be covered by the banks from their own resources.

(2) Any favorable or unfavorable exchange rate differences arising from these accounts shall be borne by the respective parties.

(3) Trading transactions conducted in precious metal custody accounts without physical delivery shall be considered foreign exchange transactions.