- It is forbidden for citizens to send money more than 50 thousand dollars abroad, unless you can present a document on the reason.
- It is forbidden for companies to send money more than 500 thousand dollars (10 million TL) abroad, unless they can present a document on the reason.
- Banks are not allowed to buy foreign currency in the morning.
- Companies are prohibited from buying foreign currency from foreign currency trading platforms. Now they have to do the foreign exchange transaction from the branch. The branch also requires approval from the general directorate. This causes the process to take a serious time.
- Companies that have a foreign currency equivalent of 10 million TL (ie 530 thousand dollars) in their safes are prohibited from using TL loans from banks if this amount is more than 5 percent of their asset size or turnover.
- It is forbidden for companies to buy foreign currency with loans from banks. It is also prohibited if there are foreign currency debts.
- It is forbidden to pay in foreign currency for any kind of shopping.
- Payment of checks in foreign currency is prohibited.
- It is de facto forbidden for foreign currency deposits in banks to be more than 40 percent of their total deposits.
- Banks are prohibited from holding more than 5% of their equity in foreign currency.
- It is forbidden for medium-sized and large companies to use TL loans from banks if their exports are not more than one hundred percent more than their imports (that is, if they are not a net exporter).
- Companies that cannot submit an invoice regarding the place where they spent the credit they received are prohibited from using credit.
- Banks are de facto prohibited from giving commercial loans at an interest rate of more than 29 percent.
- It is de facto forbidden for factoring companies to provide financing with an interest rate of more than 29 percent.
- It is forbidden for companies to pay loan repayments and leasing installments with loans.
- Companies with a turnover exceeding TL 15 million are prohibited from using loans without an independent audit report.
- It is de facto forbidden for Turkish banks to transact on the Swap market in London.
- It is forbidden for exporters to spend the foreign currency they earn from foreign trade as they wish. They have to change 40 percent of it to the Central Bank since last year, and 70 percent to banks in total.
- It is forbidden for tourism professionals to spend the foreign currency they earn from foreign trade as they wish. They have to sell 40 percent of it to the Central Bank since last year.
Congrats to the spirit of the free market!
(This article is inspired by Erol Tasdelen‘s on Bankavitrini.com “Trade bans can stop companies with a ‘smack’” I got it from the article titled.)