Announcement on Amendments Regarding Securities Registration

"Communiqué Amending the Communiqué on Securities Registration” (the “Communiqué”) has been published in the Offical Gazette dated 20 August 2023 and numbered 32285 by the Central Bank of the Republic of Turkey (the “CBRT”).

As per temporary articles introduced within the scope of the relevant Communiqué, the transition of matured foreign exchange protection-supported accounts to Turkish lira deposits, the reduction and renewal of certain proportion of these accounts and within the scope of increase of Turkish lira deposits, the imposition of limitations on foreign exchange protection-supported accounts have been introduced.

The Communiqué outlines the transition ratios of matured foreign exchange protection-supported accounts to Turkish lira deposits/participation accounts. In addition, the CBRT specifies that if the renewal ratios of foreign exchange protection-supported accounts, supported by exchange rate/price protection from the CBRT, fall below the predetermined amount, the deficit amount of securities will be also blocked.

Additionally, it is also regulated that no securities facility will be applied to banks with deposit/participation fund sizes below the amount determined by the CBRT. Furthermore, the CBRT is empowered to adjust the specified ratios, modify calculation periods, and extend designated dates to differentiate implementations for deposit and participation banks.

The first article of the Communiqué, effective from 28 July 2023, will be in force as of the publication date, while the third, fifth, and sixth articles will be effective on the publication date, and other articles will become effective on 26 August 2023. You may find the detailed provisions of the Communiqué in the Official Gazette.