Newsletter Regarding Amendments to The Capital Movements Circular
Paragraph 16(c) of Article 21 and Paragraph 16(c) of Article 40 of Capital Movements Circular (“Circular”) were amended in accordance with the letter dated February 16, 2021 numbered 101057 of Ministry of Treasury and Finance of Republic of Turkey. With the above mentioned regulations of the Circular, in case that unlicensed generation facilities operating within the scope of the Regulation on Unlicensed Electricity Generation in the Electricity Market published in the Official Gazette numbered 30772 are acquired, it has been made possible for the legal entities, which have acquired the shares of unlicensed generation facilities, to use foreign currency loans after the transfer, provided that the acquisition of the said generation facilities and loan balances.
With the amendment made in the Circular, in case “entire” of the shares of these generation facilities are acquired, it is possible to use foreign currency loans provided that the loan balances of the legal entity that transferred their shares and which are used within the scope of this regulation are taken over. Also, in this case, one of the following documents must be submitted to the intermediary bank:
(i) a copy of Turkish Trade Registry Gazette in which the share transfer was registered, or
(ii) notarized copies of the relevant pages of the share ledger regarding share transfers