Communiqué No. 2023/6 sets out the procedures and principles for the support to be provided for the foreign currency conversion or Turkish lira deposit and participation fund accounts of resident legal persons with foreign currency liabilities.
The purpose of Communiqué No. 2023/6 is to set out the procedures and principles for the support to be provided, within the scope of their liabilities, for the foreign currency conversion or Turkish lira deposit and participation fund accounts of resident legal persons with foreign currency liabilities.
Accordingly:
Opening and/or conversion of accounts
The balances of foreign currency deposit accounts and foreign currency participation fund accounts in US dollars, euros and pounds sterling held at banks by resident legal persons with foreign currency liabilities (meaning liabilities relating to import payments or the repayment of foreign currency loans) are converted into Turkish lira at the term-start exchange rate if the account holder so requests.
The foreign currency the bank obtains as a result of that transaction is purchased by the Central Bank at the term-start rate and the Turkish lira equivalent is transferred to the bank concerned.
The bank opens a Turkish lira deposit or participation account for the resident legal person with maturities to be determined by the Central Bank of not less than one month.
The maturity may not be less than one month
For Turkish lira deposit or participation fund account balances, an account is opened at the term-start rate, on the account holder’s request, with maturities to be determined by the Central Bank of not less than one month.
End-of-term procedures
At the end of the term, the bank pays the principal and interest to the Turkish lira deposit account holder, and the participation account balance at the end of the term to the participation account holder.
Where the end-of-term rate is higher than the term-start rate and the amount calculated on the exchange rate difference exceeds the interest or profit share payable by the bank, the amount calculated by deducting the interest or profit share from the amount calculated on the exchange rate difference is transferred by the Central Bank to the bank concerned for payment to the deposit or participation account holder.
Where the term is broken
Where a withdrawal is made from the Turkish lira deposit or participation account before maturity, no payment is made by the Central Bank in respect of the exchange rate difference.
Loan requests will not be accepted for one year where the undertaking not to purchase foreign currency is not fulfilled
An undertaking not to purchase foreign currency for the duration of the account is obtained from resident legal persons opening a deposit or participation account under this Communiqué.
Where the undertaking not to purchase foreign currency is not fulfilled, requests by the resident legal person concerned for loans from Central Bank resources (rediscount loans) will not be accepted for one year from the date on which the failure to fulfil the undertaking is established.
Interest rate
The interest rate the bank applies to the deposit account may not be below the one-week repo auction rate determined by the Central Bank.
Where the return to be provided on the participation account is lower than the cost arising in the Central Bank’s one-week repurchase transactions with participation banks under open market operations, the participation bank may meet the difference in accordance with participation banking principles; no payment is made by the Central Bank for any part not so met.
Click for Communiqué No. 2023/06.