Turkey: New BRSA Regulation for banks – Clearstream Banking is exempt from Turkish Lira (“TRY”) imposed limitations
25 May 2020
Clearstream Banking will re-instate TRY credit facilities for eligible customers, both for internal and domestic against payment settlement transactions in TRY.
Settlement in TRY over the Bridge with Euroclear remains suspended until further notice.
Further to the Banking Regulation and Supervisory Agency’s (“BRSA”) (the bank watchdog in Turkey) decision numbered 9010 of 5 May 2020, Clearstream Banking suspended customer credit facilities in TRY and suspended TRY settlement on the Bridge with Euroclear Bank, whilst maintaining TRY denominated settlement in CBL’s own system and maintaining settlement in all eligible securities issued by Turkish issuers.
Based on the latest assessment of the decision numbered 9010, dated 5 May 2020, BRSA, conforming to decision numbered 9031, dated 20 May 2020, has decided to exempt certain institutions defined as “foreign central securities depository” according to capital markets regulation, in order to maintain an efficient trade flow for Turkish Lira denominated securities and to minimise the negative effects on Turkish Lira bonds and lease certificates’ (Sukuk) settlement operations.
Accordingly, Clearstream Banking has been exempted from the imposed limitations.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.