Regarding the loan disbursement decision announced on Friday, the Banking Regulation and Supervision Agency (BDDK) said, "It is an independent audited company, the TL equivalent of the company's foreign currency (FX) cash assets is over 15 million TL, and the company's TL equivalent of FX cash assets is calculated from the total assets or the greater of the net sales revenue of the last 1 year exceeds 10 percent… For any company to be within the scope of the decision, all three conditions must be met.” made the statement.
In the statement made by the BRSA, it was reminded that banks had previously given instructions to show maximum care in order to prevent the use of loans in the realization of transactions that are not suitable for their purpose.
In the statement, it is stated that some companies buy foreign currency using TL loans and hold foreign currency positions, even though they do not have foreign currency debt or foreign currency liabilities, and even have a foreign currency position. However, it continues to be used by some companies for the purpose of buying foreign currency.” expression was used.
In the statement, it was stated that a decision was taken on Friday as a necessary macro precautionary measure to strengthen financial stability, to use resources in more efficient and productive areas, to ensure that the credit system works effectively, and to ensure that loans are used in line with their purpose.
“It has been beneficial to make some explanations in order to eliminate the hesitations that may arise regarding the implementation of the decision. Being a company subject to independent audit, the TL equivalent of the company's foreign currency (FX) cash assets (including gold, effective foreign currency and FX deposits in banks) is over 15 million TL, and the TL equivalent of the company's FX cash assets is greater than the total assets or the net sales revenue of the last 1 year one of which exceeds 10 percent… For any company to be within the scope of the decision, all three conditions must be met. On the other hand, real persons and real person company partners are not included in the scope of the said decision.
Circumstances to be excluded from the limitation
In the statement, exceptional situations regarding companies that are within the scope of credit extension limitation are included due to the fulfillment of all 3 conditions for the implementation of the decision.
Accordingly, companies that are unable to obtain a loan in FX, if they have a foreign currency net position gap approved by the independent audit firm and submitted to the bank within 3 months from the date of application for the loan, only limited to the gap in the 3 months following the application date, in TL. They will be able to use cash commercial loans.
The criteria to be considered for companies that will benefit from this exemption will be the presence of a foreign currency position deficit, that is, if their foreign currency debts (liabilities) are more than their foreign currency assets in any upcoming quarter.
In such a case, these companies will be able to extend cash commercial loans in TL as much as the FX liabilities exceed the FX assets.
FX cash assets included and not included in the decision
FX cash assets will include companies' effective foreign currency, including gold, and FX deposits in banks.
Other monetary assets of companies, consisting of securities issued in FX by residents and debt instruments such as eurobonds, will not be included in the scope of FX cash assets specified in the resolution.
Other monetary assets of companies such as securities and stocks issued in FX by non-residents and reverse repo with non-residents will also be included in the calculation of the FX cash asset amount within the scope of the decision.
Status of companies not covered
Companies whose FX cash assets do not exceed TL 15 million will not be included in the credit limit within the scope of the decision.
However, these companies, as of the loan application date, "have their current FX cash assets and their total assets according to the most up-to-date financial statements and the last 1-year net sales revenue to be determined by the independent audit firm", "the TL equivalent of their FX cash assets during the term of the loan they will use shall not exceed 15 million TL, or They declare and undertake that the greater of their total assets or the net sales revenue of the last 1 year will not exceed 10 percent even if it exceeds or exceeds 10 percent” Accordingly, they will be required to convey to the bank the current value of their FX cash assets, total assets and the last 12 months' net sales revenue as of the end of the previous month.
Types of commercial loans covered by the limitation
The balance increase calculation to be made at the end of each month for cash commercial TL loan disbursements to be made as of the decision date through loan transactions such as revolving, overdraft accounts (KMH) or corporate credit cards will be considered as a new use.
In case of an increase in the balance compared to the end of the month before the calculation date at the end of each month, the relevant commercial loan customer will have to certify to the bank the documents approved by the independent audit firm specified in the decision, until this calculation to be made as of the end of the month. The same application will also apply if there is a balance risk amount in overnight loans.
At the end of the month, the loan customer; find balance increase for revolving, KMH or corporate credit cards; For overnight loans, if the risk amount is found and it is determined that they are within the scope of the relevant limitation within the framework of the documents certified, a new cash commercial loan in TL will not be extended to the said customers, even if there is a limit gap.
On the other hand, in calculating the TL equivalent of FX cash assets, the foreign exchange buying rate of the Central Bank of the Republic of Turkey pertaining to the calculation date will be used.
Other matters that banks and companies will pay attention to
Banks will have to warn their customers before companies make a TL loan request, so that they do not engage in practices aimed at circumventing the decision through fictitious transactions or other collusive transactions.
Each bank will check specifically for their own banks whether their customers have made FX asset transfers for such fraudulent purposes. If they make such a determination, the banks will inform the BRSA.
On the other hand, necessary legal actions can be taken against those who enable the opening of a loan that should not be allocated by the banks by carrying out such misleading and collusive transactions to circumvent or neutralize the decision.
The relevant bank will also inform the institution about companies that do not comply with the decision or do not submit to the bank the information and documents that need to be approved and determined by the independent audit firm within 1 month after the loan allocation.
The statement also clarified issues such as "whether companies are subject to independent auditing", "the most up-to-date financial statements" and "documents that need to be certified by independent audit firms are not ready".
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