Recent Developments
In line with the letter no. 49024 issued by Ministry of Finance and Treasury on January 25, 2021, the Central Bank of the Republic of Turkey amended the Capital Movements Circular on the same date. The amendment clarifies the transfer of the proceeds of funds borrowed from abroad to Turkish. The proceeds of the loans utilized by a Turkish resident borrower from abroad can only be transferred to the borrower’s bank account with a Turkish bank. In other words, these proceeds cannot be transferred to any other persons’ (e.g. the borrower’s parent company or affiliate) Turkish bank account.
Conclusion
The amendment clarifies whose Turkish bank account will be used for the transfer of the proceeds of loans from abroad.
