Articles 21/16/c and 40/16/c of the Capital Movements Circular (“Circular”) have been amended with the letter of Ministry of Treasury and Finance of Republic of Turkey dated 24.05.2022 and numbered 1216612.

The articles subject to the amendments are regarding the loans that do not require foreign currency income for both domestic loans and loans borrowed from abroad, and regulate the foreign currency loans to be used by legal entities that take over the all shares of production facilities. With the amendment, the licensed production facilities that have started operating before 01.07.2021 has been included in the scope of the article in addition to unlicensed production facilities.

The duration of using foreign currency loans for the legal entities that take over all of these generation facilities has been limited as period for benefiting from the Renewable Energy Resources (“RER”) Support Mechanism.

The loan amount that can be used for the licensed generation facilities cannot exceed 80% of the total calculated according to the remaining time for the purchase guarantee multiplied by the price subject to the scope of the RER Support Mechanism, including the domestic contribution fee of the annual electrical energy production amounts included in their licenses.

Bahar Ülgen Hasşerbetçi
Sevim Özkan
Associate | sevim.ozkan@bener.com