Banking Regulation and Supervision Agency ("BRSA") with its decision dated 21.10.2022 and numbered 10389, has expanded the restrictions in relation to the commercial cash loans utilized by companies subject to independent audit, by decreasing the threshold of holding foreign currency (FX) cash assets (gold, effective currency, FX currency cash asset) as of the loan utilisation date from 15 million Turkish Lira to 10 million Turkish Lira and the rate of FX cash assets from 10 % to 5% of the total FX assets or annual sales of the company as per its latest financial tables.
At the beginning of the summer of 2022, BRSA has announced these restrictions over the commercial cash loans utilized by companies respectively in its decision dated 24.06.2022 and numbered 10250 and decision dated 07.07.2022 and numbered 10265, which was particularly brought to loosen some of the restrictions brought in the former decision. As per these decisions, the companies for using commercial cash loans were obliged to hold FX cash assets that does not exceed 15 million TL and 10% of their total FX assets or annual sales as per their latest financial tables.
This time, BRSA, with its new decision, tightened its restrictions applicable for commercial loan utilisation and requires the companies to hold FX cash assets not more than 10 million TL and 5% of their total assets or annual sales as per their latest financial tables in order to be eligible for utilizing commercial loans.
This new decision of BRSA will come into force as of 01.11.2022 and as per this new decision, the representations and undertakings regularly obtained from customers relating to their FX assets will be collected from the customers again as of 01.11.2022.
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