Memorandum Regarding the Amendments to the Capital Movements Circular in November and December 2025
The Capital Movements Circular (the "Circular") sets forth the procedures and principles governing the procurement of loans from abroad and the use of foreign currency loans by residents of Türkiye. As a general rule, residents of Türkiye who do not have foreign currency income are prohibited from using foreign currency loans.
However, the Circular specifies certain exceptional circumstances where the foreign currency income requirement is waived. Through amendments made on November 4, November 17, and December 11, 2025, the Circular has been updated, thereby expanding the scope of these exceptional circumstances where the foreign currency income condition is not sought. These amendments were enacted by the Ministry of Treasury and Finance of the Republic of Türkiye pursuant to Article 21/1(f) of the Circular, through official letters issued on the aforementioned dates.
The update dated November 4, 2025, removed the foreign currency income requirement for foreign currency loans to be used by Turkish resident legal entities that are under the joint control or control of public institutions and organizations. For this exception to apply, the legal entity utilizing the credit must provide documentary evidence to the intermediary bank, using trade registry gazettes or letters obtained from relevant official authorities, demonstrating that it is under the joint control or control of a public institution or organization by way of holding privileged shares, disposing of the majority of voting rights based on agreements with other shareholders, or possessing the power to appoint or dismiss the majority of the members of the board of directors capable of taking resolutions, by any means whatsoever.
The amendment made on November 17, 2025, stipulated that the foreign currency income requirement shall also not be sought for foreign currency loans to be used by Turkish resident sub-operators or contractors that enter into foreign currency contracts upon being awarded the tenders with foreign currency, that were internationally announced, pursuant to the Law on Implementation of Privatization numbered 4046 and dated 24 November 1994. For this exception to apply, the originals of the contracts signed between the sub-operator or contractor and the winning bidder, including the pages detailing the parties, subject matter, amount, date, and signatures, must be submitted to the bank or financial institution mediating the loan. Furthermore, the amount of the loan granted must not exceed the contract price.
The amendment made on December 11, 2025, introduced a special exception for Turkish residents who win tenders conducted by the Savings Deposit Insurance Fund (Tasarruf Mevduatı Sigorta Fonu, TMSF) within the framework of sales and liquidation processes concerning companies subject to confiscation decisions pursuant to Article 1 of Law No. 7076 on the Introduction of Certain Regulations under the State of Emergency and the approval granted by the Ministry of Treasury and Finance thereunder. Accordingly, the foreign currency income requirement shall not be sought for foreign currency loans obtained for the purpose of executing share transfer agreements denominated in Turkish Lira that are related to these tenders. For this exception to apply, the originals of the share transfer agreements, including the pages detailing the parties, subject matter, amount, date, and signatures, must be submitted to the bank or financial institution mediating the loan. Additionally, the amount of the loan granted must not exceed the total price stipulated in the share transfer agreement, and the Central Bank's foreign currency selling rates on the date of loan utilization must be used for calculating the maximum foreign currency loan amount that can be utilized.
As a result, the general regulations and requirements concerning foreign currency loans have been maintained with the amendments made in November and December 2025. The exceptional cases that permit the use of foreign currency loans without a foreign currency income have been expanded as outlined above.
