Export and Foreign Exchange Earning Services Rediscount Financing Implementation Instruction (Participation Finance)

CENTRAL BANK OF THE REPUBLIC OF TÜRKİYE

EXPORT AND FOREIGN EXCHANGE EARNING
SERVICES REDISCOUNT FINANCING
IMPLEMENTATION INSTRUCTION
(Participation Finance)

BANKING AND FINANCIAL INSTITUTIONS GENERAL DIRECTORATE

24 DECEMBER 2019

PART ONE

Purpose, Scope, Basis and Definitions

Purpose

ARTICLE 1- (1) The purpose of this Implementation Instruction is to regulate the implementation details of export and foreign exchange earning services rediscount financing transactions.

Scope

ARTICLE 2- (1) This Implementation Instruction covers the transactions related to the extension of pre-shipment rediscount financing to exporter, manufacturer exporter, manufacturer companies producing final goods for export, and companies engaged in foreign exchange earning services and activities, through the method of acceptance for rediscount of bills and documents issued in foreign currency or Turkish lira.

(2) Rediscount financing shall not be extended for sales and deliveries deemed as exports, foreign exchange earning services other than those listed in subparagraph (c) of the first paragraph of Article 4 of this Implementation Instruction, transit trade, export of imported goods, exports made within the scope of barter and tied transactions, gratuitous exports, exports made within the framework of border trade provisions, and exports to free zones (excluding the portion of exports from Türkiye to free zones sent to third countries and goods sold to free zones to be used as machinery/equipment, fixtures or parts thereof in the facilities of companies operating in the free zone).

Basis

ARTICLE 3- (1) This Implementation Instruction has been prepared based on Article 45 of the Central Bank of the Republic of Türkiye Law No. 1211 dated 14/1/1970 and Article 13 of the Rediscount and Advance Regulation of the Central Bank of the Republic of Türkiye.

Definitions and abbreviations

ARTICLE 4- (1) In this Implementation Instruction;

a) Intermediary bank: Banks defined in Article 3 of the Banking Law No. 5411 dated 19/10/2005, authorized to extend funds through participation banking methods, and mediating the extension of financing within the framework of this Implementation Instruction,

b) CME term SOFR: Forward and term rates calculated on a forward-looking and term basis from SOFR (Secured Overnight Financing Rate) rates, which is the overnight risk-free interest rate determined by CME Group for the US dollar currency,

c) Foreign exchange earning services:

1) Foreign exchange earning service projects such as consultancy, software and engineering services to be carried out for abroad,

2) Health services to be provided in return for foreign exchange to foreigners (including diplomatic missions and their members), tourists or Turkish citizens working abroad during their stay in our country,

3) Land, sea or air transportation services and activities, provided that the amounts earned in foreign exchange from international freight and passenger transportation are brought into the country,

4) Service sales in return for foreign exchange made by tourism establishments and travel agencies during their tourism activities at home and abroad,

5) Maintenance and repair services carried out on behalf of companies resident abroad, provided that the fees are received in foreign exchange, and maintenance and repair, renewal and conversion of Turkish and foreign flagged ships, aircraft or trucks on international voyages, and sales of goods (excluding fuel and mineral oils) and services carried out within the scope of maintenance, repair, renewal and conversion,

ç) Foreign exchange position ratio: The ratio calculated according to the formula in Annex-8,

d) EURIBOR (Euro Interbank Offered Rate): The interbank money market lending rate for the Euro currency,

e) General Directorate: The Banking and Financial Institutions General Directorate of the Central Bank of the Republic of Türkiye,

f) İBKB: The Export Proceeds Acceptance Certificate in the annex of the Communiqué No. 2018-32/48 on the Decree No. 32 on the Protection of the Value of Turkish Currency (on Export Proceeds),

g) Export: The removal of a good from the Turkish customs territory or to free zones, provided that it is exported to third countries, in accordance with the export legislation and customs legislation in force,

ğ) Export proceeds: The amount earned from non-residents through exports or foreign exchange earning services,

h) Exporter score: The company score calculated by intermediary banks based on the methods set out in the third paragraph of Article 6 of this Instruction,

ı) Istanbul Branch: The Istanbul Branch of the Central Bank,

i) Participation bank: Banks that comply with the definition of participation bank in Article 3 of the Banking Law No. 5411 dated 19/10/2005,

j) SME: Small and medium-sized enterprise as defined in subparagraph (b) of the first paragraph of Article 4 of the "Regulation on Small and Medium-Sized Enterprises" published in the Official Gazette dated 25 May 2023 and numbered 32201,

k) Small enterprise: Enterprises as defined in subparagraph (b) of the first paragraph of Article 5 of the "Regulation on Small and Medium-Sized Enterprises" published in the Official Gazette dated 25 May 2023 and numbered 32201,

l) Central Bank: The Central Bank of the Republic of Türkiye,

m) Micro enterprise: Enterprises as defined in subparagraph (a) of the first paragraph of Article 5 of the "Regulation on Small and Medium-Sized Enterprises" published in the Official Gazette dated 25 May 2023 and numbered 32201,

n) Net financing amount: The principal amount transferred to intermediary banks for extension to companies and not including profit share amounts,

o) Medium-sized enterprise: Enterprises as defined in subparagraph (c) of the first paragraph of Article 5 of the "Regulation on Small and Medium-Sized Enterprises" published in the Official Gazette dated 25 May 2023 and numbered 32201,

ö) Rediscount financing: Financing extended through intermediary banks for pre-shipment exports and foreign exchange earning services,

p) Acceptance for rediscount: The acceptance by the Central Bank of the bills whose conditions are set out in this Implementation Instruction within the scope of export and foreign exchange earning services rediscount financing to be extended based on the investment agency method,

r) Acceptance for rediscount amount: The amount written on the bill submitted to be taken as basis for the repayment of the rediscount financing,

s) RKYS: The electronic system in which operational transactions related to export and foreign exchange earning services rediscount financing are carried out,

ş) Companies operating in the defense industry sector: Companies that are members of the SAHA Istanbul Defense, Aviation and Space Cluster Association (SAHA) and the Defense and Aerospace Industry Manufacturers Association (SASAD), and companies holding (A) or (B) level certificates within the scope of the Presidency of Defense Industries Industrial Competence Assessment and Support Program (EYDEP),

t) Bill portfolio: All bills within the scope of rediscount financing in the possession of the Central Bank,

u) SMMM: Certified Public Accountants,

ü) SRVTS: The Systemic Risk Data Tracking System set out in the Regulation on the Monitoring by the Central Bank of the Republic of Turkey of Transactions Affecting Foreign Exchange Position, published in the Official Gazette dated 17/2/2018 and numbered 30335,

v) Türk Eximbank: Türkiye İhracat ve Kredi Bankası A.Ş.,

y) YMM: Sworn-in Certified Public Accountants,

z) Group company: The company defined in subparagraph (e) of the first paragraph of Article 3 of the Communiqué on Tax, Duty and Fee Exemption in Export, Transit Trade, Sales and Deliveries Deemed as Export and Foreign Exchange Earning Services and Activities (Export: 2017/4), published in the Official Gazette dated 18/5/2017 and numbered 30070

means.

CHAPTER TWO

Characteristics of Bills to be Accepted for Rediscount and Criteria Regarding the Creditworthiness of Companies

Characteristics, transfer and delivery of bills to be accepted for rediscount

ARTICLE 5- (1) In commercial bills issued in the form of a policy or promissory note to be accepted for rediscount;

a) Bearing at least two signatures, with the last endorser being a bank,

b) Being issued to order in US Dollars, Euro or Turkish lira,

c) For financing extended by accepting foreign currency denominated bills for rediscount, having a remaining maturity of at most 180 days, or in financing extended for the export and foreign exchange earning services of companies operating in the defense industry sector, having a remaining maturity of at most 360 days,

ç) For financing extended by accepting Turkish lira denominated bills for rediscount within the scope of Additional Article 1, having a remaining maturity of at most 360 days, or in financing extended for the export of companies operating in the defense industry sector, having a remaining maturity of at most 720 days,

d) Containing the formal requirements stipulated by the legislation in force in the country where it is accepted or avalized and in our country,

e) Not bearing protest prohibition and similar records and not having a break in the chain of endorsements,

f) The creditworthiness of the companies whose signatures are on it being considered positive,

g) Their amounts not exceeding the maximum financing amounts allocated for the company and intermediary banks,

ğ) Being issued as recourseable to the company using the financing,

h) Being transferred to the Central Bank by assignment endorsement,

ı) The receivable attached to the bill having arisen or to arise from an export transaction or foreign exchange earning services,

are sought.

(2) The originals of the commercial bills and related documents to be accepted within the scope of export and foreign exchange earning services rediscount financing are kept on behalf of the Central Bank at the intermediary bank where the financing is extended. In the event that the originals of the said bills and documents are lost or destroyed, the Central Bank is immediately informed. In the event that the originals of the bills and documents are lost or destroyed, the intermediary banks are responsible for all kinds of damages the Central Bank may incur.

(3) After the collection of the rediscount acceptance amount from the final debtor, and after the rediscount financing relationship is terminated, a duly kept copy of the commercial bills and related documents returned to the company as required by legislation is presented to the Central Bank upon request.

(4) If deemed necessary by the Central Bank, an aval of another bank other than the intermediary bank or a transferable definitive letter of guarantee may be requested as additional collateral together with the commercial bills.

Conditions for extending rediscount financing

ARTICLE 6- (1) For the purpose of financing pre-shipment exports;

a) To Foreign Trade Capital Companies and Sectoral Foreign Trade Companies,

b) To exporter, manufacturer-exporter and manufacturer companies that, although not having the status of exporter, produce final goods for export and export these goods through an exporter,

c) To companies that, according to the Free Zones Law dated 6/6/1985 and numbered 3218, hold a production license for the sale of goods produced in free zones to third countries or hold a purchase-sale license for the sale of Turkish-origin goods procured from the free zone or from Turkey to third countries from the free zone,

rediscount financing is extended through intermediary banks.

(2) For the purpose of financing foreign exchange earning services;

a) To tourism enterprises holding a tourism operation certificate and travel agencies holding an A group travel agency operation certificate determined by the Ministry of Culture and Tourism to have the quality of tour operator,

b) To international road transport companies resident in Turkey holding B1, B2, C2, C3, L2, R2 or Transport Works Organizer (TİO) authorization certificates issued by the Ministry of Transport and Infrastructure, to companies engaged in international maritime transport holding a seaworthiness certificate, and to private airline companies holding an operating license,

c) To companies providing consultancy, software and engineering services abroad (for consultancy, engineering and software companies, the relevant services must be included in the purpose and subject heading in the Trade Registry Gazette or in the chamber activity certificate and this must be evidenced),

ç) To companies holding a license/permission or compliance certificate issued by the Ministry of Health providing health services to foreign nationals, tourists or Turkish citizens working abroad during their stay in our country in return for foreign exchange,

d) The maintenance and repair service performed on behalf of companies resident abroad, provided that the fees are collected in foreign currency, and the maintenance, repair, renewal and conversion service of Turkish and foreign flagged ships, aircraft or trucks going on international voyages, and the sale of goods (excluding fuel and mineral oils) and services within the scope of maintenance, repair, renewal and conversion

to companies performing (for ship maintenance and repair activities, the operating permit obtained from the Ministry of Transport and Infrastructure or the document showing that this activity is carried out, and for aircraft maintenance and repair activities, the submission of the unsanitary workplace opening and operating license obtained from the Ministry of Transport and Infrastructure is required.)

e) Provided that they have the relevant authorization certificates listed in the second paragraph of this article and a license suitable for their activity; in accordance with the Free Zones Law No. 3218 dated 6/6/1985; rediscount financing is extended to companies that sell services from free zones to third countries.

(3) For companies that will use rediscount financing through banks other than Türk Eximbank, apart from the conditions listed in the fourth paragraph of this article, at least one of the "performance score" or "potential score" sections used in the calculation of the exporter score must be 40 points or above. The exporter score is calculated by intermediary banks based on the data in the "Exporter Score Declaration Form" in Annex-6/B to be declared by the companies and the "Exporter Score Calculation Criteria" in Annex-6/A. Technical details and explanations regarding the calculation method are also sent to intermediary banks by the Central Bank electronically.

(4) Financing is extended without calculating the exporter score under the conditions specified below:

a) Companies operating in the defense industry sector.

b) Companies that will use rediscount financing for the purpose of financing foreign exchange earning services.

c) Companies with net sales revenue (turnover) of 5 billion TL or more in the last fiscal year and export revenue of 500 million USD or more in the last fiscal year.

ç) Newly established companies that will use rediscount financing with the submission of a proforma invoice or contract in the current year, provided that export receivable insurance has been taken out.

d) Rediscount financings used with the surety of credit guarantee institutions established in accordance with Article 11/A of the Decision No. 2016/9538 on Treasury Support Provided to Credit Guarantee Institutions.

(5) In financing applications within the scope of the third paragraph of this article, all responsibility for the calculation of the exporter scores of the companies that will use financing, and in financing applications within the scope of the fourth paragraph of this article, for the determination that the companies that will use financing meet one of the conditions enabling the extension of financing without the exporter score listed in the said article, belongs to the intermediary bank. The intermediary bank requests the information and documents it needs for this control from the company.

(6) For an intermediary exporter company whose exporter score is determined to be above the threshold within the scope of the third paragraph of this article, the exporter score of the manufacturer or manufacturer-exporter company supplying the final goods for export is also considered to be above the determined threshold. Manufacturer or manufacturer-exporter companies within this scope submit to the intermediary bank an invoice for at least the amount accepted for rediscount issued to the intermediary exporter and the "Pre-Shipment Rediscount Financing Consent" document indicating that they consent to the use of the export proceeds obtained by themselves in the repayment of the financing by the intermediary exporter company.

(7) Companies may declare the data in the "Exporter Score Declaration Form" in Annex-6/B starting from the beginning of the year following the annual accounting period, based on the data for the previous year.

(8) The Central Bank may not grant eligibility to financing requests based on its own evaluations. The intermediary bank is informed about the requests for which eligibility is not granted.

(9) In the event that it is subsequently determined that the companies using rediscount financing remained below the exporter score threshold value in the third paragraph of this article or did not meet one of the conditions listed in the fourth paragraph of this article at the time of the extension of the financing, a sanction is applied to the intermediary banks at the rate specified in the second paragraph of Article 15 of this Instruction for the period from the date the financing was extended to the date the financing was repaid.

Ways of extending rediscount financing

ARTICLE 7– (1) Pre-shipment rediscount financing is extended based on exports or foreign exchange earning services undertaken to be made according to letter of credit, documents against payment or documents against acceptance payment methods, by accepting for rediscount the bills drawn by the company using the financing as debtor on the intermediary banks, in the amount of the sum of the financing and the profit share amount applied by the Central Bank, and endorsed by the intermediary bank.

(2) Based on exports or foreign exchange earning services undertaken to be made according to letter of credit, documents against payment or documents against acceptance payment methods, provided that they remain within the maturities specified in this Implementation Instruction, it is observed by the intermediary banks that companies applying for pre-shipment rediscount financing use rediscount financing with a maturity suitable for their operating cycle.

(3) Rediscount facility is not provided for export or foreign exchange earning service receivables where the importer or service buyer company participates in the payment undertaking as joint and several debtor and the export or foreign exchange earning service amount is secured by letters of guarantee. Furthermore, instead of the bills not brought into the country after acceptance and aval transactions or not yet reached the relevant intermediary bank, the bills drawn by the relevant companies based on the confirmation of the issuing bank that the documents shipped are accepted and the amount accepted for rediscount will be paid at maturity, and the bills held by the intermediary banks in the bill portfolio for collection are not accepted for rediscount.

(4) The financing utilization requests of companies that fail to fully perform the export or foreign exchange earning service commitment twice within one year within the period specified in the first sentence of the first paragraph of Article 16 shall not be accepted for a period of one year from the date on which the commitment is not performed for the second time.

Rediscount financings to be extended by the method of depositing the promissory note issued by the participation bank customer with Türk Eximbank

ARTICLE 7/A- (1) Export and foreign exchange earning services rediscount financings may also be extended by a method intermediated by the participation bank within the scope of the agreement established between Türk Eximbank and the participation banks, by endorsing the promissory notes issued by the participation bank customers and meeting the conditions specified in Articles 5 and 11 of this Implementation Directive to the Central Bank through Türk Eximbank. In the event that the financings are extended by this method, the following provisions shall be applied:

a) The Investment Agency Agreement on the Extension of Rediscount Financing through the Türk Eximbank Channel (Annex-7) contained in the annex of this Implementation Directive shall be signed between Türk Eximbank and the Central Bank.

b) The promissory notes issued by the companies that are participation bank customers and deposited with Türk Eximbank shall be endorsed by Türk Eximbank to the Central Bank. The promissory notes shall be kept by Türk Eximbank on behalf of the Central Bank in accordance with the provisions of this Implementation Directive.

c) Financing applications shall be carried out by Türk Eximbank in accordance with Article 10 of this Directive.

ç) The Export and Foreign Exchange Earning Services Rediscount Financing Promissory Note Commitment (Annex-2) and the Export and Foreign Exchange Earning Services Rediscount Financing Conditions Compliance Commitment (Annex-4) contained in the annex prepared in accordance with the provisions of Article 10 of this Directive shall be signed by Türk Eximbank.

d) The net financing amount transferred by the Central Bank to Türk Eximbank within the scope of the relevant Investment Agency Agreement shall be sent by Türk Eximbank to the relevant participation bank account to be extended to the participation bank customer within the scope of the agreement established between Türk Eximbank and the participation banks.

e) The relevant participation bank shall extend the financings in accordance with the provisions of this Implementation Directive and the agreement established between Türk Eximbank and the participation bank.

f) All duties and responsibilities regarding the repayment of the rediscount acceptance amounts to the Central Bank shall belong to Türk Eximbank. The procedures and details regarding the financing repayment obligations of the relevant participation bank and the participation bank customer may be determined by Türk Eximbank in accordance with the regulations on repayment in this Directive.

g) The control and monitoring of the realization status of the commitments related to the financing shall be carried out by Türk Eximbank and reported to the Central Bank.

(2) All duties and responsibilities regarding the rediscount financings to be extended within the scope of this article shall belong to Türk Eximbank in its capacity as intermediary bank. Türk Eximbank shall be responsible for all kinds of follow-up to be carried out by the Central Bank within the scope of the said financings.

Criteria regarding the creditworthiness of companies

ARTICLE 8- (1) The control and monitoring of creditworthiness criteria shall be carried out by the intermediary bank.

(2) In order for the creditworthiness of companies applying for financing to be deemed sufficient;

a) The company not having any debt classified as Loans and Other Receivables with Limited Collection Possibility, Loans and Other Receivables under Legal Follow-up, Loans and Other Receivables to be Liquidated, and Loans and Other Receivables of Loss Nature by banks, financial leasing and financing companies according to the regulations made by the Banking Regulation and Supervision Agency during the utilization period of the financing,

b) Not having any protests that have not been lifted in the last three-year period,

c) Not having any execution proceedings or attachment that would affect its activities,

ç) Not having suspended its payments, and if it has requested a concordat, at least one year having passed since the conclusion of this request,

d) Not having been requested for bankruptcy or not being in a state of bankruptcy postponement,

e) The company and its authorized representatives whose signatures are on the promissory note not having any bans on issuing checks and opening check accounts,

is required.

(3) All responsibility regarding the determination that the company applying for financing meets the criteria specified in the second paragraph of this article and the evaluation of its creditworthiness shall belong to the intermediary bank.

PART THREE

Extension of Rediscount Financing

Financing limits

ARTICLE 9- (1) The compliance of the extended financing amounts with the financing limits allocated to intermediary banks shall be monitored by the General Directorate. The rediscount financing limit intermediated for utilization on a bank basis cannot exceed fifteen percent of the total limit allocated to intermediary banks other than Türk Eximbank.

(2) In financing extensions, the total limit, which may be on a daily, weekly or monthly basis, the distribution of this limit among intermediary banks, its distribution by maturity, its distribution by currency and/or its distribution according to whether the companies that will use the financing have SME status shall be determined by the Central Bank and announced to the intermediary banks. The control and monitoring of the limit, maturity distribution and other matters that may be determined by the Central Bank pursuant to this paragraph shall be carried out by the intermediary banks and financing applications shall be submitted in accordance with these limits and rules.

(3) In rediscount financings, the financing utilization limit;

a) For companies providing foreign exchange earning services, intermediary exporter companies and companies operating in the defense industry sector, 5 billion 500 million Turkish liras,

b) For SMEs, half of the maximum annual net sales revenue or financial balance sheet amounts determined for micro, small and medium-sized enterprises in subparagraphs (a), (b) and (c) of the first paragraph of Article 5 of the "Regulation on Small and Medium-Sized Enterprises" published in the Official Gazette dated 25 May 2023 and numbered 32201,

c) For other companies, 3 billion Turkish liras,

shall be applied. For firms whose net sales revenue (turnover) in the last fiscal year is over 7.5 billion Turkish liras, these limits are applied as two times, for firms over 22.5 billion Turkish liras and firms operating in the defense industry sector as three times, and for firms over 30 billion Turkish liras as four times. Except for SMEs and firms operating in the defense industry sector, at most 60 percent of these amounts may be used in financing applications with a maturity of 121 days or more. Under the financing utilization limits granted in this paragraph, only export and foreign exchange earning services rediscount financing requests extended against commercial papers issued solely in Turkish liras may be submitted.

(4) The rediscount financing utilization limits of firms providing foreign exchange earning services and possessing other conditions to be determined by the Central Bank may be determined in foreign currency. Instead of the limits specified in the third paragraph, a limit of 350 million Euros may be allocated to these firms. This limit may be increased up to four times according to firm qualifications.

Rediscount financing application process

ARTICLE 10- (1) Rediscount financing applications of firms with sufficient creditworthiness are made by the general directorates of intermediary banks electronically transmitting the information and documents listed below to the General Directorate and the intermediary bank entering the information regarding the financing application into the RKYS:

a) The information in the application documents in Annex-1/A, Annex-1/B or Annex-1/C,

b) One copy each of the promissory note and other related documents,

c) Foreign exchange income information for the last three fiscal years for foreign currency financing,

ç) By examining the firm's export and import information for the last three fiscal years or the last fiscal year, that the export score of the firm applying for financing within the scope of the third paragraph of Article 6 of this Communiqué is above the determined threshold value or that it meets one of the conditions allowing financing without an export score according to the fourth paragraph of the same article, that the financing application meets the conditions set out in this Communiqué

the written undertaking of the intermediary bank prepared according to the sample in Annex-4 stating that it provides this and that all responsibility in this matter belongs to the banks,

d) For SMEs, the written declaration of the intermediary bank stating that the firm is in SME status on the date of financing utilization according to the definition in subparagraph (j) of the first paragraph of Article 4 of this Communiqué and which SME class (micro enterprise, small enterprise or medium-sized enterprise) it is in,

e) The Pre-Shipment Rediscount Financing Consent Letter issued in the manner specified in the sixth paragraph of Article 6 of this Communiqué for manufacturer or manufacturer-importer firms using an intermediary exporter,

f) Documents obtained within the last 15 days before the application date showing the firm's overdue SGK premium debt status and overdue tax debt status.

Financing approvals are finalized based on the information entered into the RKYS.

(2) In rediscount eligibility requests regarding letters of credit assigned to manufacturer-exporter firms, the exporter and manufacturer-exporter firms and the assignment status are specified.

(3) According to the relevant legislation; documents showing that the firms requesting financing are authorized to perform the transactions considered among foreign exchange earning services must be submitted to the intermediary banks. If the financing is used within the scope of VRHİB, the authorization documents in the second paragraph of Article 6 are not required.

(4) If the manufacturer or manufacturer-exporter firm requests pre-shipment rediscount financing, the signed and stamped "Pre-Shipment Rediscount Financing Consent Letter" document of the intermediary exporter firm stating that it deems the financing utilization appropriate is kept with the intermediary bank on behalf of the Central Bank.

(5) At the financing application stage, free zone firms shall present to the intermediary bank; an approved copy by the Free Zone Directorate of the activity license on production, purchase-sale or maintenance-repair, a capacity report for manufacturing firms, a document showing that it is a taxpayer, and the trade registry gazette.

(6) The follow-up, outcome and responsibility of disputes that may arise regarding matters such as the validity of other signatures including the bank endorsing the promissory note and the validity of the contract belong to the intermediary banks. For this reason, matters regarding the signatures on the promissory note, their legal capacity, representation powers and creditworthiness are not separately examined by the Istanbul Branch. The investigation and monitoring of the creditworthiness of firms is not carried out by the Istanbul Branch.

(7) In accordance with the allocated utilization limits, an indefinite-term "Export and Foreign Exchange Earning Services Rediscount Financing Promissory Note Undertaking" (Annex-2) (Undertaking) issued in US dollars for foreign currency rediscount financing and in Turkish liras for Turkish lira rediscount financing is obtained from the bank general directorates. In the Undertaking, it is stated that in cases deemed necessary by the Central Bank, the use of financings or accounts may be partially or fully restricted, and that the follow-up, outcome and responsibilities of disputes that may arise regarding matters such as the validity of signatures on commercial papers accepted for rediscount and the validity of the contract shall also belong to the intermediary banks.

(8) An Undertaking in a certain amount that the intermediary banks deem appropriate in advance is given, and if this amount is exceeded, an additional Undertaking is issued for the exceeding portion.

(9) There is no need for these Undertakings to be notarized. However, the conformity of the signatures on the Undertakings with the signature specimens of the relevant intermediary banks is checked by the Istanbul Branch.

(10) In rediscount financings extended in foreign currency, in checking whether the rediscount acceptance amounts of financings in a foreign currency other than US dollars exceed the maximum amount specified in the Undertaking, the US dollar equivalent at the Central Bank cross rate on the date the promissory note is accepted for rediscount is taken into account.

(11) Other details regarding the financing application processes are determined by the General Directorate.

Examination and endorsement of promissory notes

ARTICLE 11- (1) Whether the bills accepted for rediscount comply with this article and the other provisions of this Implementation Instruction shall be examined and checked by the intermediary banks. Any and all liability arising from the bills accepted for rediscount being null or void for any reason or from their failure to comply with the provisions set out in this Implementation Instruction shall belong to the intermediary banks.

(2) For the bills accepted for rediscount;

a) In addition to the form of the borrowings made by bill of exchange and promissory note being in compliance with the laws of the country in which these borrowings are signed, as required by Articles 767 and 778 of the Turkish Commercial Code No. 6102 dated 13/1/2011, the signatures of the drawer and endorser on these bills being valid also under Turkish law, and within this framework, their being signed by hand, the endorsement being unconditional and unrestricted, and signature and name stamps having been used in companies in accordance with their representation powers,

b) The bills of exchange and promissory notes relating to rediscount financing extended based on exports or foreign exchange earning services containing the formal requirements set out in Articles 671 and 776 of Law No. 6102,

c) Without prejudice to the provisions of Articles 672 and 777 of Law No. 6102, the bills of exchange and promissory notes containing the word bill of exchange or promissory note (order instrument), the amount to be paid, the maturity, the place of payment, the name and surname of the beneficiary, the date and place of issue (drawing) and the signature of the drawer, and in addition, the name and surname of the drawee being present in the bill of exchange,

ç) In the case of bills arising or to arise from a direct export or foreign exchange earning service transaction where the drawee is the importer, the foreign exchange earning service recipient or a bank abroad, in order for the bills to be collectible from the drawee or the guarantor, the form of the bill being in compliance with the laws of the country in which the drawee or guarantor signed the bill,

is mandatory.

(3) In addition to the matters set out in the second paragraph, in the bills to be accepted for rediscount;

a) The payment not being subject to any record or condition, and the bills not containing the records "not to order" or "not endorsable",

b) There being no record of payment in installments,

c) There being no more than one maturity with different dates,

ç) No maturity other than the four types of maturity provided for in Article 703 of Law No. 6102 having been determined,

d) In the aval endorsement, there being an explicit record stating in whose favor the aval was given among the importer or exporter or foreign exchange earning service seller or foreign exchange earning service buyer companies,

e) In bills issued in foreign currency, if the foreign currency type written on them is not in the currency of the country of the guarantor or accepting bank, the phrase "effective" being present on the bill,

the said matters are also sought.

(4) Bills drawn to order or assigned shall be transferred by the intermediary bank to the Central Bank by blank endorsement or by an endorsement expressing definitive assignment, and the original of the bill shall be kept at the intermediary bank.

(5) Endorsements; in bills arising directly from an export or foreign exchange earning service transaction as a payment and delivery condition under sales contracts, shall be written in the form "Pay to the order of Türkiye Cumhuriyet Merkez Bankası"; in bills of exchange drawn in Turkish by companies based on term letters of credit/insurance policies for which the issuance of a bill is not envisaged, where the drawee and beneficiary are banks, and in promissory notes relating to rediscount financing extended based on an export or foreign exchange earning service commitment or receivables arising from realized exports or services, shall be written in the form "Türkiye Cumhuriyet Merkez Bankası veya emrü havalesine ödeyiniz. Bedeli nakden/hesaben alınmıştır."

(6) If a discrepancy is detected between the application information and the bill information, the use of the financing shall be canceled by the Central Bank.

Rediscount acceptance amounts and financing value

ARTICLE 12- (1) The profit share amount applied by the Central Bank shall be deducted from the foreign currency values of bills issued in foreign currency, and the financing value shall be calculated. The Turkish lira equivalents of the rediscount acceptance amounts, determined by the Central Bank at 11:00 on the day the financing is provided over the foreign exchange buying rate to be calculated by the Central Bank, shall be transferred to the accounts of the intermediary banks after the profit share amount is deducted. On days when half-day work is performed, the foreign exchange buying rates to be calculated by the Central Bank at 11:00 shall also be used. However, since intermediary banks freely determine the exchange rates they will apply for commercial transactions, there is no obligation to apply the Central Bank foreign exchange buying rate in the financing relationship between the company using the financing and the intermediary bank.

(2) After the profit share amount applied by the Central Bank is deducted from the written values of bills issued in Turkish lira, the remaining amount shall be transferred to the accounts of the intermediary banks. In calculating the foreign exchange equivalent of the rediscount acceptance amounts relating to rediscount financing extended in Turkish lira, the foreign exchange selling rate to be calculated by the Central Bank at 11:00 on the day the financing is extended, including days when half-day work is performed, shall be used.

(3) In calculating the financing period of bills issued in foreign currency, consideration shall be given to whether the maturity of the bill coincides with a holiday in the country where the rediscount acceptance amount will be repaid and credited to the Central Bank's correspondent account. Regardless of whether it is a holiday in Türkiye, if the maturity of the bill coincides with a holiday in the country where the Central Bank correspondent account to which payment will be made is located, the first business day following the holiday in that country shall be accepted as the payment day.

(4) In calculating the financing period of bills issued in Turkish lira, consideration shall be given to whether the maturity of the bill coincides with a weekend or another official holiday in Türkiye. If the maturity of the bill coincides with a holiday, the first business day following the holiday shall be accepted as the payment day.

Profit share rate and commissions applied in rediscount transactions

ARTICLE 13- (1) In rediscount financing transactions extended in foreign currency, the profit share rates applied shall be determined to be equal to the CME term SOFR reference rates valid on the day the financing transaction is executed for US Dollar financings, and the EURIBOR reference rates valid on the day the financing transaction is executed for Euro financings. In the event that foreign markets are closed on the date the financing transaction is executed, the CME term SOFR/EURIBOR rates announced 2 days prior to this date shall be taken into account, and in cases where the holiday is longer than two days, the most recently announced CME term SOFR/EURIBOR rates shall be taken into account. For bills issued with a maturity of 0-120 days, the profit share rate determined based on the 1-month CME term SOFR/EURIBOR shall be applied, and for bills issued with a maturity of 121-360 days, the profit share rate determined based on the 6-month CME term SOFR/EURIBOR rates shall be applied. In the event that the announced CME term SOFR/EURIBOR rates are negative, the profit share rate shall be applied as zero.

(2) Since the rediscount acceptance amounts shall be collected on their maturity dates, or if the bill maturity dates coincide with a holiday, on the first business day following the holiday, the number of days to be taken into account in calculating the profit share amount shall be found by calculating the difference between the maturity date of the bill, or if the bill maturity coincides with a holiday, the first business day following the holiday, and the date one day before the day the financing is provided. In calculating the profit share amounts, the year shall be taken as 360 days in the fixed denominator.

(3) In Turkish lira rediscount financings, the annual commission rate to be applied to the financing by intermediary banks cannot exceed a maximum of 200 basis points for financings to be extended to companies with SME status, and a maximum of 100 basis points for financings to be extended to other companies.

In foreign currency rediscount financings, the annual commission rate to be applied to the financing by intermediary banks cannot exceed 50 basis points.

Areas where rediscount financing can be spent

ARTICLE 13/A- (1) The areas where export and foreign exchange earning services rediscount financing amounts extended in foreign currency can be spent, provided that they comply with participation finance principles and standards, are wage payments to employees, payments to raw material and intermediate goods suppliers, transfers related to machinery, intermediate goods and raw material import payments, service purchases related to exports such as transportation, insurance and freight, and payments made to companies within the scope of investment goods and machinery purchases, rent payments, electricity, water and natural gas bill payments, tax payments and SGK premium payments. Pursuant to this paragraph, documents related to debts and expenditures in Turkish lira or foreign currency shall be accepted; however, payments to domestic residents can only be made in Turkish lira.

(2) Export and foreign exchange earning services rediscount financing amounts extended in foreign currency shall be transferred by the intermediary bank to a blocked account in the name of the company. The intermediary bank shall determine whether the document submitted to it falls within the scope of the said expenditure areas.

(3) Based on the documents determined to be related to the expenditure areas specified in the first paragraph of this article, the amount specified in the document shall be transferred by the intermediary bank directly to the account of the real person, company or public institution to whom the payment subject to the document shall be made. The account information to which the payment shall be made shall be notified to the intermediary bank by the company. All responsibility for the control and determination of the use of rediscount financing amounts in payments for the expenditure areas specified in the first paragraph of this article lies with the intermediary banks.

(4) In the event that there is a record of overdue debt in the documents showing the debt status submitted by the company at the time of the financing application, first the net financing amount shall be used to pay the said debt, or the company shall prove that the debt has been paid with a more recent dated debt status document. Following this transaction, the remaining net financing amount shall be extended in accordance with the matters set out in this article.

(5) In cases where it is not possible for the intermediary bank to make a direct transfer of the payment related to the expenditure area, the financing amount may be sent by the intermediary bank to another bank and the transfer transactions may be carried out through this bank. In this case, the company shall prove to the intermediary bank the invoices and receipts in an amount covering the transfer amount and in compliance with the expenditure areas; the intermediary bank shall check that invoices and receipts have been submitted up to the transfer amount, that the invoices comply with the expenditure areas specified in the first paragraph of this article, and that the buyers recorded in the receipts are the same persons as those issuing the invoices. In the event that the number of invoices is excessive, it is possible for the company to prove the receipts to the intermediary bank together with a list containing the invoice and receipt information for each expenditure. In this case, the intermediary bank shall check that the invoice and receipt amounts in the list cover the transfer amount, that the expenditure information within the scope of the invoices complies with the expenditure areas specified in the first paragraph of this article, that the buyers recorded in the receipts are the same persons as those issuing the invoices, and that the information in the receipts is consistent with the receipt information in the list. The company is obliged to prove the documents specified in this paragraph to the intermediary bank within one month from the date the rediscount financing amount was transferred. In the event that documents covering at least 80% of the transfer amount are submitted within this period, an additional one-month period shall be granted to the company for the remaining portion. A company that fails to prove information and documents in accordance with the rules set out in this paragraph within the specified periods shall be notified by the intermediary bank to the Central Bank by the fifth business day of the month following the expiry of the notification period at the latest, and the rediscount financing usage requests of this company shall not be accepted for six months from the date the notification is made to the Central Bank. The documents proven by the company within the scope of this paragraph shall be stored by the intermediary bank in electronic environment to be submitted during audits.

Sale of export proceeds foreign exchange to the Central Bank

ARTICLE 13/B- (Repealed.)

Collection of rediscount acceptance amounts

ARTICLE 14- (1) Rediscount acceptance amounts are paid in the currency written on the bills. However, if deemed appropriate by the General Directorate, it is possible for the payment to be made in another foreign currency type that is subject to purchase and sale by the Central Bank at the Central Bank cross rate on the payment date.

(2) The collection of financings extended within the scope of bills whose drawee is banks abroad or which are avalized by these banks is carried out by the intermediary banks that present the bills for rediscount.

(3) The intermediary banks performing the collection transaction are authorized to present the bills for payment, return the bills whose amounts have been paid to the debtor, issue receipts for the amounts paid, draw a protest in case of non-payment, and pursue follow-up through execution or lawsuit.

(4) No fee, expense, or commission (including correspondent fees, expenses, and commissions) is paid to the intermediary banks due to collection transactions.

(5) The intermediary banks ensure that the rediscount acceptance amount is credited, without deducting any fee, expense, or commission, to the Central Bank correspondent accounts specified in Annex-3 for financings extended in foreign currency, with value date on the maturity date, or if the maturity coincides with a holiday, on the first business day following the holiday, and to the relevant Central Bank accounts for financings extended in Turkish lira, and they notify the Central Bank of the repayment transactions performed via RKYS on the same day. In such transactions, back value dating is not applied. For rediscount acceptance amount payments that are paid at maturity but notified via RKYS after the maturity date, no delay penalty is applied.

(6) In case the rediscount acceptance amounts are not paid, the Central Bank may collect the amounts ex officio, as well as resort to protest and follow-up. This matter does not remove the responsibilities of the intermediary banks. In case the Central Bank collects the repayments of the rediscount acceptance amounts, all expenses, together with the collection commission, are collected from the relevant intermediary bank. In case the rediscount acceptance amount is not paid, the protest and follow-up expenses are covered by the relevant intermediary bank.

(7) Bills whose rediscount acceptance amounts are credited to the Central Bank correspondent accounts or the relevant Central Bank accounts at their maturities and whose repayment transaction is notified via RKYS are removed from the bill portfolio.

(8) In case, after the bill is accepted for rediscount, the intermediary bank determines that the firm's creditworthiness has been lost and notifies the General Directorate, or the requested information and documents are not provided to the Central Bank within the time period, the intermediary bank must pay the rediscount acceptance amounts within at most two business days from the date requested by the Central Bank. In case the payment is not made on time, a delay penalty is applied at the rate specified in the second paragraph of Article 15 of this Instruction for foreign currency financings and in the third paragraph of the same article for Turkish lira financings, from the request date, and the Central Bank is authorized to collect ex officio the said rediscount acceptance amounts and delay penalties from the intermediary bank's accounts with the Central Bank.

(9) In case, after the bill is accepted for rediscount, the intermediary bank determines that the firm's creditworthiness has been lost due to reasons such as the bankruptcy of the companies whose signatures are on the bills, their request for concordat, their abandonment of trade, their mere suspension of payments even if not proven by a court judgment, the existence of execution proceedings or attachment affecting their activities to a degree, a ban on opening a checking account and issuing checks, or an unremoved protested bill or a loan amount classified as a non-performing receivable, written information is given to the General Directorate. The Central Bank sends an instruction to the intermediary bank for the collection of the rediscount acceptance amount. Within 2 business days from the date the instruction reaches the intermediary bank, the rediscount acceptance amount is paid by the intermediary bank and the repayment transaction is notified via RKYS on the same day. Following the payment and RKYS notification, the bill is removed from the bill portfolio before its maturity.

(10) In the cases specified in the ninth paragraph, the profit share amount collected for the unprocessed days in the period from the date the bill is removed from the portfolio until the maturity date is refunded. However, the Istanbul Branch is authorized to request expenses and commissions due to these transactions.

(11) In case the rediscount acceptance amount is paid before its maturity upon the request of the intermediary bank or the firm, the bill is removed from the portfolio, but the profit share amount collected in advance is not refunded.

(12) The Central Bank has the right to recall its financings before maturity when it deems necessary, without being subject to any condition.

Repayment of foreign currency rediscount financings with export or foreign exchange earning service revenues

ARTICLE 14/A- (Repealed.)

FOURTH CHAPTER

Sanctions to be Applied in Case of Non-Fulfillment of Rediscount Financing Obligations

Failure to collect rediscount acceptance amounts and application of sanctions

ARTICLE 15- (1) Rediscount acceptance amounts are collected at the end of their maturity at the latest. At the end of the maturity, the collection of rediscount acceptance amounts cannot be delayed for any reason or in any manner, and these bills cannot be renewed.

(2) In case foreign currency rediscount acceptance amounts are not paid at maturity, a delay penalty is applied based on the foreign currency type and amounts, from the maturity date, over the rate to be calculated by adding 300 basis points to the profit share rate applied to the financing within the framework of the first paragraph of Article 13 of this Implementation Instruction. In addition, BSMV is applied to this calculated amount.

(3) In case Turkish lira rediscount acceptance amounts are not paid at maturity, a delay penalty is applied from the maturity date until the payment date for each day over the profit share rate calculated as a result of multiplying the highest overnight lending rate announced by the Central Bank by a coefficient of 1.5. In addition, BSMV is applied to this calculated amount.

(4) In the event that the rediscount acceptance amounts are not credited to the Central Bank correspondent account or the relevant Central Bank account at maturity, within the framework of the matters specified in Article 13, the Istanbul Branch is authorized to collect the rediscount acceptance amounts and the delay penalty ex officio from any and all free foreign currency and Turkish lira accounts or any rights and receivables of the intermediary banks at the Central Bank. In the calculation of the Turkish lira equivalent of the amount to be collected, the Central Bank foreign exchange selling rate on the collection date shall be applied.

(5) Since, in Article 768 of Law No. 6102, for instruments where the drawee is a bank abroad, the form of collection procedures and protest is subject to the law of the country where these procedures will be carried out, the intermediary banks are responsible for carrying out the procedures in accordance with the relevant law.

(6) In the event that the intermediary bank, for any reason, fails to make the repayments of the rediscount financing it has intermediated, it shall promptly deliver the instruments and related documents that it could not repay and that it holds on behalf of the Central Bank to the Istanbul Branch. In the event that this procedure is not carried out, the intermediary bank shall be responsible for all incurred and future, direct and indirect losses of the Central Bank.

(7) The Central Bank may at any time request the physical delivery of the instruments and related documents kept with the intermediary bank. In this case, the instruments and related documents requested to be delivered shall be promptly delivered to the Istanbul Branch by the intermediary banks.

(8) The Istanbul Branch shall act in accordance with the instructions of the General Directorate regarding the instruments physically brought within the scope of the sixth and seventh paragraphs of this article.

(9) In the event that the rediscount acceptance amount is not repaid, the debtor company whose signature is on the promissory notes related to the rediscount financings submitted for rediscount by the intermediary banks shall be protested in the same manner and a notification shall be made to the Risk Center of the Banks Association of Turkey.

(10) In accordance with the third paragraph of Article 18 of Law No. 6102, notifications shall be made through a notary public, by registered mail with return receipt, by telegram, or by registered electronic mail using a secure electronic signature.

Realization of the export or foreign exchange earning service commitment, non-realization of the commitment, and imposition of sanctions in other cases

ARTICLE 16- (1) It is essential that the export or foreign exchange earning service commitment subject to the financing is closed within twenty-four (24) months from the date of use of the financing with exports other than the export types specified in the second paragraph of Article 2 of this Implementation Instruction or with foreign exchange earning service revenues. The date of use of the financing is the date on which the financing is credited by the Central Bank to the intermediary bank's account. In financings to be extended within the scope of VRHİB, even if the document period is longer than 24 months, the rediscount financing commitment must be realized within 24 months.

(2) In the closing of the export commitment, a note must be placed on the customs declarations by the intermediary banks stating that they have been counted against the export financing commitment.

(3) With the approval of the Central Bank, certain domestic sales of goods and services made by companies operating in strategic sectors may be counted against the export commitments related to the export and foreign exchange earning services rediscount financings used by the companies. For this, the request of the relevant company for its domestic sales to be counted against the export commitments related to the export and foreign exchange earning services rediscount financings and the justification of this request must be transmitted to the General Directorate by the intermediary bank and the request must be deemed appropriate by the Central Bank.

(4) Exports realized by group companies may be used in the closing of the export commitment of the companies using the financing, provided that the group relationship exists both during the extension of the financing and during the closing of the export commitment subject to the financing.

(5) The foreign exchange earning service commitment is closed by the intermediary banks upon the presentation of service invoices or, if the number of these invoices is too high, their lists approved by Certified Public Accountants or Sworn-in Certified Public Accountants, and the Foreign Exchange Purchase Certificate or the bank receipt showing that the sales and/or delivery price foreign currency has been credited to the relevant party's account or the work completion certificate, and by placing a note on these documents stating that they have been counted against the financing commitment. In the closing of the said service commitment, invoices related to the service export realized within 24 months shall be used. In case of doubt, the invoices included in the approved lists may be requested.

(6) In rediscount financings extended within the scope of VRHİB, the determination that the commitment related to the financing has been realized shall be made by the intermediary bank at the end of the commitment closing period specified in this Implementation Instruction. The VRHİB commitment closing transaction shall be carried out by the relevant Central Bank Branch at the end of the document period within the framework of the provisions of the relevant incentive legislation.

(7) In the event that it is determined that the goods exported to the free zone have been sent from the free zone to countries outside Turkey, by the approval of the records of the "Free Zone Transaction Form" approved by the Free Zone Directorates by associating them with the "Customs Declarations" and other relevant documents, the exports realized to the free zones may be used in the closing of the export commitment of the companies using the financing. A note is placed by the intermediary banks on the original user copy (exit copy) of the Free Zone Transaction Form and on the customs declarations stating that they have been counted against the export commitment.

(8) Provided that, in addition to the Free Zone Transaction Form, Preliminary Status Certificate and Customs Declaration approved by the free zone directorates, a report jointly prepared by the free zone customs directorate and the free zone directorate is submitted, it is possible for the goods (items) sold to the free zone to be used in the facilities of companies operating in the free zone as machinery/equipment, items registered as fixtures or as parts thereof, to be used in the closing of the export commitment of the companies using the financing.

(9) Export commitments related to rediscount financings extended to companies resident in free zones are closed as described below:

a) Manufacturer companies using the financing; submit the user copy of the "Free Zone Transaction Form" (Exit) approved by the Free Zone and Customs Directorates for goods produced in free zones and sold to third countries, and the invoice issued in the name of the buyer and the Customs Declaration (Transit) related to the shipment to third countries.

b) Intermediary exporter companies using the financing; submit the user copy of the "Free Zone Transaction Form" (Intra-zone sale) approved by the Free Zone Directorate and the attached invoice (manufacturer's invoice) for goods produced in free zones and sold to third countries, or the user copy of the "Free Zone Transaction Form" (Entry) approved by the Free Zone and Customs Directorates and the attached invoice for the entry into the free zone of goods purchased from Turkey and sold to third countries, the user copy of the "Free Zone Transaction Form" (Exit) approved by the Free Zone and Customs Directorates, and the invoice issued in the name of the buyer and the Customs Declaration (Transit) related to the shipment to third countries.

c) Companies using the financing and engaged in foreign exchange earning activities; submit the user copy of the "Free Zone Transaction Form" (Exit) approved by the Free Zone and Customs Directorates for the service provided from free zones to third countries and the invoice issued in the name of the buyer. ç) If needed, the accuracy of the relevant information and documents is confirmed by the relevant Free Zone Directorate.

d) In shipments to be made directly abroad from the free zone quay, the submission of the Customs Declaration (Transit) is not required.

(10) Provided that the export or foreign exchange earning service made in return for advance foreign currency or Turkish lira is realized after the date the financing was extended, it is possible for it to be counted towards the commitment of the rediscount financing.

(11) Whether the export or foreign exchange earning service commitments related to rediscount financings have been fulfilled is monitored by the intermediary bank on a financing basis. The fulfillment status of the commitments must be documented by the companies within at most four months from the day following the end of the commitment closing period. The relevant intermediary bank reports the result of the determination of the fulfillment status of the export or foreign exchange earning service commitment and the requested data regarding the documents used in the closing of the financing commitment through RKYS within at most ten business days.

(12) Upon the notification by intermediary banks through RKYS that the export or foreign exchange earning service commitment has been partially or completely unfulfilled, the sanction amount calculated for rediscount financings extended in foreign currency for the unfulfilled portion of the export or foreign exchange earning service, provided that it is at least 300 basis points, at the rate of profit share applied to the financing, and for rediscount financings extended in Turkish lira, based on the profit share rate specified in the fourteenth paragraph of Article 1 of Annex 1, is collected from the relevant intermediary bank together with BSMV.

(13) Within the scope of this Implementation Instruction, in the event that the export or foreign exchange earning service commitment or the export proceeds foreign exchange sale commitment is not fulfilled or whether these commitments have been fulfilled within the periods specified in the relevant provisions is not notified to the Central Bank, the sanction amount calculated by the Central Bank is notified to the intermediary bank. If the intermediary bank notifies the Central Bank within 10 business days from the date of this notification that the relevant commitment has been fulfilled, the relevant commitments are deemed to have been fulfilled and no sanction is applied based on these commitments. The sanction amount of the financings for which no commitment fulfillment notification is made to the Central Bank within 10 business days becomes final and is collected by the Central Bank. The intermediary bank is obliged to inform the company regarding the sanction amounts and the additional document submission period, and to notify the Central Bank within the said 10 business day period as to whether the relevant commitment has been closed in the event that the company submits documents. Document submissions to be made after the sanction amounts become final and are collected will not be taken into consideration by the Central Bank and the sanction amounts will not be refunded.

(14) The BSMV that was not previously collected due to being exempted according to the provisions of the export incentive legislation shall be separately collected by the Istanbul Branch, together with the delay penalty to be calculated in accordance with the provisions of the Tax Procedure Law dated 4/1/1961 and numbered 213, for the period from the date the financing was extended to the date of collection, over the unfulfilled export or foreign exchange earning service amount that constitutes the basis for the sanction. The collected BSMV amounts are deposited to the relevant tax office by the Central Bank General Directorate of Budget and Financial Reporting until the 15th of the month following the date on which it is notified through RKYS that the export or foreign exchange earning service commitment has been partially or completely unfulfilled.

(15) In the event that the BSMV is not paid on time, the tax amount will be collected from the Central Bank, which is the taxpayer, in accordance with the provisions of the Law on the Procedure for the Collection of Public Receivables dated 21/7/1953 and numbered 6183, with the late payment interest also applied, and therefore care should be taken not to miss the said date. The sanctions that may be applied to the Central Bank due to non-compliance with the said provisions are recourse to the intermediary bank in accordance with Article 10 of the Rediscount Financing Bill Commitment.

(16) In the event that the commitment is not fulfilled partially or fully, the General Directorate of Budget and Financial Reporting shall notify the relevant tax office in order to ensure the collection of the tax, duty, fee and stamp tax obligations that were initially exempted.

(17) Obligations regarding the Resource Utilization Support Fund shall be fulfilled within the framework of the relevant Decision, Communiqué and Circulars.

(18) In financing utilizations within the scope of this Implementation Instruction, the requests of companies that are determined to have made false statements to the Central Bank or intermediary banks for the use of export and foreign exchange earning services rediscount financing shall not be accepted for a period of two years from the date of determination of the discrepancy.

Obligations imposed and sanctions applied in case of non-compliance with rediscount financing utilization and repayment restrictions

ARTICLE 16/A- (Repealed.)

PART FIVE

Other Matters

Matters regarding legislation

ARTICLE 17- (1) Financing shall be extended by the Central Bank through the method of acceptance for rediscount of the promissory notes issued by companies based on their term export proceeds receivables and export or foreign exchange earning service commitments and submitted to intermediary banks. In this respect, all kinds of follow-up, notification and similar transactions and responsibilities stipulated and to be stipulated by foreign trade, Turkish currency value protection, export promotion legislation and legislation regarding funds and other relevant legislation shall be under the obligation of intermediary banks.

(2) Within the scope of this Implementation Instruction, financing shall not be extended to companies that are determined to be on the lists of MASAK, the United States Office of Foreign Assets Control (OFAC), the United Nations Security Council, the United Kingdom Office of Financial Sanctions Implementation or the European Union Financial Sanctions lists and, if necessary, similar lists to be notified by the Central Bank, and to companies directly or indirectly owned, partnered in or controlled by persons on the said lists.

(3) Within the scope of this Implementation Instruction, rediscount financing shall not be extended in relation to commercial activities carried out with companies and persons on the lists of MASAK, OFAC, the United Nations Security Council, the United Kingdom Office of Financial Sanctions Implementation or the European Union Financial Sanctions lists and, if necessary, similar lists to be notified by the Central Bank, and in relation to goods or services subject to the said lists, and the commitments of the financing cannot be closed with documents related to these activities.

(4) The control as to whether the companies to which financing is extended and the persons directly or indirectly owning, partnering in or controlling the said companies are on the lists of MASAK, OFAC, the United Nations Security Council, the United Kingdom Office of Financial Sanctions Implementation or the European Union Financial Sanctions lists and, if necessary, similar lists to be notified by the Central Bank, and whether the goods or services for which financing is extended and the companies and persons with which commercial activity is carried out are subject to the lists of the aforementioned sanctions shall be performed by the intermediary bank. All legal responsibility in this matter belongs to the intermediary bank.

(5) Upon request, detailed information regarding the transaction subject to financing shall be notified to the Central Bank by intermediary banks.

Application of tax, duty and fee exemption in rediscount financings

ARTICLE 18- (1) In rediscount financings, tax, duty and fee exemption shall be applied to export or foreign exchange earning service transactions within the framework of the provisions of the Export Promotion Decision and the Communiqué regarding this Decision. In matters regarding the Resource Utilization Support Fund, transactions shall be carried out within the framework of the provisions of the relevant Decision, Communiqué and Circular.

(2) Pursuant to the Stamp Tax Law No. 488 dated 1/7/1964, since bills of exchange are not subject to stamp tax, stamp tax shall not be paid on the promissory notes submitted for rediscount, and the letters of commitment and assignment deeds issued by intermediary banks are also exempted from stamp tax.

Issuance of foreign exchange purchase and foreign exchange sale documents

ARTICLE 19- (1) On the date the foreign currency denominated promissory note is accepted, a foreign exchange sale document shall be issued by intermediary banks and a foreign exchange purchase document shall be issued by the Istanbul Branch over the nominal rediscount acceptance amount. In the foreign exchange purchase and foreign exchange sale documents issued within this framework, the Central Bank foreign exchange buying rate, which is the basis for the foreign exchange purchase document issued by the Central Bank, shall be used.

(2) In the event that the rediscount acceptance amounts extended in foreign currency are paid or are offset, set off or collected by the Istanbul Branch ex officio as foreign currency, no separate foreign exchange purchase and foreign exchange sale document shall be issued.

(3) In the event that the rediscount acceptance amounts extended in foreign currency are not paid at maturity and are offset, set off or collected ex officio as Turkish lira, a foreign exchange purchase document shall be issued by intermediary banks and a foreign exchange sale document shall be issued by the Istanbul Branch.

Custody of Promissory Notes

ARTICLE 20- (1) The compliance of the commercial promissory notes accepted for rediscount and the related documents with the provisions of the Export and Foreign Exchange Earning Services Rediscount Financing Implementation Instruction shall be determined by on-site inspection to be carried out by the Central Bank at the intermediary bank. During the inspection, the originals of the promissory notes and related documents for open financings, and a duly kept copy of the promissory notes and related documents for repaid financings shall be presented.

PART SIX

Other Transactions Performed by the Istanbul Branch

Other transactions to be performed in case the rediscount acceptance amounts cannot be collected at maturity

ARTICLE 21- (1) In the event that the rediscount acceptance amounts are not paid, the drawing of a protest by the bank enables, from the perspective of the Central Bank, the application to the drawer and, based on the promissory note, to the intermediary bank for payment. In transactions that are not paid at maturity by the intermediary bank or cannot be collected ex officio by the Istanbul Branch due to insufficient funds in their accounts, this matter shall also be monitored by the Istanbul Branch.

(2) Within the framework of Articles 714 of Law No. 6102 concerning protest and periods in the policy and Article 778 concerning the provisions to be applied to the promissory note, the protest for non-payment must be drawn up in instruments with a fixed maturity date (containing the condition of payment on a specific day or after a specific period from the date of issue or from sight) within two business days following the payment day; in instruments containing the condition of payment at sight, it must be drawn up within the period granted for the presentation of the instrument. In such cases, care is taken not to miss the protest period.

(3) Before the instruments are sent for protest, the documents related to the protest are signed by the deputy branch manager and the branch manager of the Istanbul Branch.

(4) The documents related to the protest are given to the relevant officer against signature in order to be sent to the notary for the arrangement of the protest.

(5) Within the framework of Articles 723 and 778 of Law No. 6102, since the fact of avoidance of payment must be notified through a notary to the issuer of the instrument and, if any, the bank providing aval to the issuer and the intermediary bank within four business days following the protest day, it is necessary to notify the issuer of which persons are to be informed about which persons have been protested and which persons will be notified that the rediscount acceptance amount could not be collected.

(6) In the event that, despite the protest, it is not possible to collect the rediscount acceptance amounts, the transactions to be carried out regarding the intermediary bank in accordance with the provisions of the Rediscount Financing Instrument Undertaking are notified by the General Directorate Instruction.

Storage of instruments and documents related to rediscount financing transactions

ARTICLE 22- (1) Since the instruments accepted for rediscount and other related documents are kept in the custody of the intermediary bank on behalf of the Central Bank, they are not subject to the provisions of the Central Bank Joint Custody Regulation and the Implementation Instruction related thereto in terms of their custody, counting and auditing.

PART SEVEN

Final Provisions

Turkish lira export and foreign exchange earning services rediscount financing

ADDITIONAL ARTICLE 1- (1) As of the date this article enters into force, for export and foreign exchange earning services rediscount financing extended in Turkish lira within the scope of this article, as the rediscount rate;

a) for maturities up to 90 days, the rate remaining after a 100 basis point reduction from the profit share rate calculated according to the formula in Annex-5 based on the Central Bank policy interest rate,

b) for maturities between 91 and 180 days, the rate remaining after a 50 basis point reduction from the profit share rate calculated according to the formula in Annex-5 based on the Central Bank policy interest rate,

c) for maturities between 181 and 720 days, the rate calculated according to the formula in Annex-5 based on the Central Bank policy interest rate

an equal profit share rate is applied. The profit share rate determined by this method is rounded so that the part after the decimal point has two digits.

(2) Provided that companies that will use Turkish lira export and foreign exchange earning services rediscount financing sell foreign exchange from export proceeds in an amount corresponding to at least the total rediscount acceptance amount, throughout the financing maturity;

a) All IBKBs that they will have the intermediary bank issue within the scope of the Central Bank Export Communiqué are checked by the intermediary bank that it sells to the Central Bank at the current rate specified in the Central Bank Export Communiqué.

b) It is required to undertake that foreign exchange earning service revenues that are free to dispose of, provided that they are not less than the current rate specified in Article 20 of the Communiqué on Invisible Transactions dated 13 January 2000 and numbered 2000/YB-4, are sold until the financing maturity.

c) It is required to undertake to sell to the Central Bank, until the financing maturity, at least the portion corresponding to the current rate specified in the Central Bank Export Communiqué of the export revenues exempted from the obligation to have IBKB issued within the scope of the provisions of the Central Bank Export Communiqué and the revenues obtained in return for their sales from the free zone to third countries.

d) It is required that companies operating in the defense industry or aviation sector undertake that the foreign exchange from export proceeds corresponding to at least the rediscount acceptance amount is sold to the Central Bank until the financing maturity. For companies of the Turkish Armed Forces Foundation and companies operating in the defense industry sector that are subsidiaries of these companies, the condition of foreign exchange sale from export proceeds is not sought.

e) In the event that they earn income within the scope of subparagraphs (b) and (c) of this paragraph, it is required to submit an income statement approved by a YMM or SMMM containing the total of foreign-sourced revenues obtained throughout the financing maturity. The intermediary bank checks the IBKBs or foreign exchange purchase documents showing that at least the foreign-sourced foreign exchange revenues obtained by the companies throughout the financing maturity are sold at the current rates specified in the Central Bank Export Communiqué or the Communiqué on Invisible Transactions dated 13 January 2000 and numbered 2000/YB-4.

f) In the event that they earn export income only within the scope of subparagraph (a) of this paragraph, it is required to give a written declaration to the intermediary bank that they have not obtained the foreign-sourced revenues listed in subparagraphs (b) and (c) while closing their foreign exchange sale undertakings.

g) It is required to prove to their intermediary banks that they have fulfilled the foreign exchange sale obligations specified in this paragraph.

(3) The foreign exchange position ratio of companies that will use financing within the scope of this article cannot exceed 10 percent. Intermediary banks are obliged to determine that this condition is met before the use of financing. Furthermore, companies undertake that the foreign exchange position ratio will not exceed 10 percent throughout the financing maturity.

(4) Companies submit to the intermediary bank the document regarding the most current quarter-end foreign exchange position during the financing application; furthermore, throughout the financing maturity, they notify the bank mediating the financing of the foreign exchange position belonging to quarter-ends by the end of the seventeenth day of the second month following the quarter-end, and if this date coincides with a holiday, by the end of the first business day following the holiday. Firms that cannot apply for financing because the foreign exchange position ratio in their notifications for the most recent quarter-end exceeds 10 percent may submit a new foreign exchange position notification at an interim date without waiting for the next quarter-end. Foreign exchange position notification forms for interim dates are submitted only to the intermediary bank, and no notification is additionally made through SRVTS.

(5) The foreign exchange position notification is prepared by a Certified Public Accountant (SMMM) or Sworn-in Certified Public Accountant (YMM) in accordance with the sample in Annex-8, and is submitted to the intermediary bank by the firms after confirming its accuracy. SMMMs and YMMs are obliged to check the compliance of the information in the foreign exchange position notification form with the firm's accounting records. Firms also transmit their foreign exchange position notifications to the Central Bank via SRVTS.

(6) The Central Bank may request from firms the declaration of foreign exchange position information for any date falling within the financing maturity, retroactively. Within 15 days from the date this request is notified to the intermediary bank, the firms shall submit the foreign exchange position notification form for the relevant date, approved by an SMMM or YMM, to the intermediary bank and notify the Central Bank via SRVTS.

(7) If the foreign exchange position ratio in the foreign exchange position notification form declared by the firms exceeds 10 percent, the intermediary bank shall promptly inform the Central Bank.

(8) In financing applications within the scope of this article, if the firm's foreign exchange position ratio exceeds 10 percent, the financing application shall not be transmitted to the Central Bank by the intermediary bank. The export and foreign exchange earning services rediscount financing requests of firms whose foreign exchange position ratio exceeds 10 percent at any date during the financing maturity shall not be accepted for one year. The export and foreign exchange earning services rediscount financing requests of firms that fail to submit the foreign exchange position notification for quarter-ends during the financing maturity within the deadline, or fail to submit the foreign exchange position notification requested retroactively by the Central Bank within the 15-day period, shall not be accepted for six months.

(9) In the calculation of the foreign exchange equivalents of Turkish lira rediscount financings, the foreign exchange selling rate to be calculated by the Central Bank at 11:00 on the date of financing use shall be used.

(10) Transactions related to the export proceeds foreign exchange sale commitment for export and foreign exchange earning services rediscount financing extended in Turkish lira shall be carried out in accordance with the principles set out in the Implementation Instruction on Foreign Exchange Sales to the Central Bank of the Republic of Turkey within the scope of Article 1 of the Annex to the Export Communiqué and the Communiqué on Invisible Transactions dated 13 January 2000 and numbered 2000/YB-4.

(11) In rediscount financings previously extended within the scope of this article against an export proceeds sale commitment, transactions related to the export proceeds foreign exchange to be sold shall be carried out in accordance with this article and the provisions of Article 3 of this Implementation Instruction.

(12) In rediscount financings extended in Turkish lira, the annual commission rate to be applied to the financing by intermediary banks shall not exceed a maximum of 200 basis points for financings extended to firms with SME status, and a maximum of 100 basis points for financings extended to other firms.

(13) The areas in which the amounts of export and foreign exchange earning services rediscount financing extended in Turkish lira may be spent, provided that they comply with participation finance principles and standards, are wage payments made to employees, debts to raw material and intermediate goods suppliers, transfers related to machinery, intermediate goods and raw material import payments, service purchases related to exports such as transportation, insurance and freight, payments made to firms within the scope of investment goods and machinery purchases, rent payments, electricity, water and natural gas bill payments, tax payments and SGK premium payments. Pursuant to this paragraph, documents related to debts and expenses in Turkish lira or foreign exchange shall be accepted; however, payments to domestic residents may only be made in Turkish lira. Within the scope of this paragraph:

a) Net financing amounts are transferred by the intermediary bank to a blocked account in the name of the firm. The intermediary bank determines whether the document submitted to it falls within the scope of the said expenditure areas.

b) Based on the documents determined to be related to the expenditure areas, the amount specified in the document is transferred by the intermediary bank directly to the account of the real person, firm or public institution to which the payment subject to the document will be made. The account information to which the payment will be made is notified by the firm to the intermediary bank. All responsibility for the control and determination of the use of rediscount financing amounts in payments for the expenditure areas specified in this paragraph lies with the intermediary banks.

c) If there is a record of overdue debt in the documents showing the debt status submitted by the firm at the time of the financing application, first the net financing amount is used to pay the said debt, or the firm provides proof that the debt has been paid with a more recent debt status document. After this transaction, the remaining net financing amount is extended in accordance with the matters set out in this article.

ç) In cases where it is not possible for the bank intermediating the rediscount financing to make the direct transfer of the payment related to the expenditure area, the financing amount may be sent by the intermediary bank to another bank and the transfer transactions may be carried out through this bank. In this case, the firm shall evidence to the intermediary bank invoices and receipts compliant with the expenditure areas in an amount covering the transfer amount; the intermediary bank shall check that invoices and receipts have been submitted up to the transfer amount, that the invoices comply with the expenditure areas specified in this paragraph, and that the buyers recorded in the receipts are the same persons as those issuing the invoices. If the number of invoices is high, it is possible for the firm to evidence the receipts to the intermediary bank together with a list containing the invoice and receipt information for each expenditure. In this case, the intermediary bank checks that the invoice and receipt amounts in the list cover the transfer amount, that the expenditure information within the scope of the invoice complies with the expenditure areas specified in this paragraph, that the buyers recorded in the receipts are the same persons as those issuing the invoices, and that the information in the receipts is consistent with the receipt information in the list. The company is obliged to document to the intermediary bank the documents specified in this paragraph within one month from the date on which the rediscount financing amount was transferred. If, within this period, documents covering at least 80% of the transfer amount are submitted, for the remaining portion the company is granted an additional

one-month period. A company that fails to provide information and document documentation in accordance with the rules set out in this paragraph within the specified periods shall be reported by the intermediary bank to the Central Bank by the fifth business day of the month following the expiry of the notification period at the latest, and this company's requests to use rediscount financing shall not be accepted for six months from the date the notification is made to the Central Bank. The documents documented by the company within the scope of this paragraph shall be stored electronically at the intermediary bank in order to be submitted during audits.

(14) In the event that the export or foreign exchange earning services and activities subject to the export and foreign exchange earning services rediscount financing extended within the scope of this article are partially or fully not performed as undertaken, a sanction shall be applied to the portion of the undertaking that is not performed, at the profit share rate applied to the financing.

(15) All provisions other than those specifically set out for export and foreign exchange earning services rediscount financings extended in foreign currency within the scope of this Implementation Instruction shall also apply, by analogy, to export and foreign exchange earning services rediscount financings extended in Turkish lira within the scope of this article.

(16) In the event that companies that have undertaken to sell foreign exchange from export proceeds under the provisions of this Implementation Instruction fail to fulfill their undertakings at the financing maturity, they are required to sell the export proceeds foreign exchange at the rates listed below, starting from the financing maturity date, according to the time elapsed since maturity. The requests of companies that are reported by the intermediary bank to the Central Bank as not having realized the sale of foreign exchange from export proceeds within these periods, or whose realization status is not reported, to use rediscount financing shall not be accepted for six months from the date this period ends, and a 300 basis point sanction shall be applied to the relevant financing.

a) If made within the first two months, 110 percent of the amount accepted for rediscount,

b) If made in the third month, 120 percent of the amount accepted for rediscount,

c) If made in the fourth month, 130 percent of the amount accepted for rediscount,

ç) If made in the fifth month, 140 percent of the amount accepted for rediscount,

d) If made in the sixth month, 150 percent of the amount accepted for rediscount.

Turkish lira export and foreign exchange earning services rediscount financings subject to pre-use foreign exchange sale

ADDITIONAL ARTICLE 2- (Repealed.)

Turkish lira export and foreign exchange earning services rediscount financings extended for investment expenditures

ADDITIONAL ARTICLE 3- (Repealed.)

Foreign currency export and foreign exchange earning services rediscount financings extended with the surety of credit guarantee institutions

ADDITIONAL ARTICLE 4- (1) Foreign currency export and foreign exchange earning services rediscount financing shall be extended, by way of acceptance for rediscount of policies and bonds with a maximum of 360 days remaining to maturity, with a limit of maximum 5 million US dollars, provided that there is a surety of at least 1.5 million US dollars, to companies applying for financing with the surety of credit guarantee institutions established in accordance with Article 11/A of Decision No. 2016/9538 on Treasury Support Provided to Credit Guarantee Institutions.

(2) In cases where there are no special provisions regarding the financings to be extended within the scope of this article, the provisions of this Implementation Instruction regarding rediscount financings to be extended in foreign currency shall apply.

(3) Intermediary banks are obliged to inform companies that will use financing within the scope of this article that they cannot benefit from the foreign exchange conversion support throughout the financing maturity within the framework of the thirteenth paragraph of Article 5 of the Implementation Instruction on the Communiqué on Supporting the Conversion of Companies' Foreign-Sourced Foreign Exchange into Turkish Lira.

Foreign currency export and foreign exchange earning services rediscount financings extended to companies operating in the defense industry sector

ADDITIONAL ARTICLE 5 - (1) To companies operating in the defense industry sector that, on the date this article enters into force, have foreign currency rediscount financing not yet matured and that have benefited from maturity extension facilities, a foreign currency rediscount financing usage limit shall be allocated equal to the US dollar equivalent of the total bond amounts of the financings within this scope.

(2) In cases where there are no special provisions regarding the financings to be extended within the scope of this article, the provisions of this Implementation Instruction regarding rediscount financings to be extended against bonds issued in foreign currency shall apply.

PROVISIONAL ARTICLE 1- (1) For export and foreign exchange earning services rediscount financings extended against commercial bonds issued in Turkish lira from the date this article enters into force until 11 August 2020 (inclusive), the profit share rate remaining after a 150 basis point reduction from the Central Bank policy interest rate shall be applied as the rediscount rate. Changes made to the Central Bank policy interest rates shall be deemed effective as of the validity date specified for the relevant policy interest rate on the Central Bank's website.

(2) In rediscount financings extended against bonds issued in Turkish lira, the annual commission rate to be applied by intermediary banks may not exceed 150 basis points.

(3) It is possible for companies providing contracting services abroad and companies operating in the field of international fair organization to use rediscount financing against promissory notes issued in Turkish lira. It is required that these companies have the relevant services in the purpose and subject heading in the Trade Registry Gazette or in the chamber activity certificate, and this must be documented. It is essential that the rediscount financings used by these companies are closed with the export or foreign exchange earning service revenues specified in the first paragraph of Article 16 of this Implementation Instruction. It is possible for the service invoices related to contracting services abroad to be used in the commitment closure of the financings used within the scope of this paragraph. In commitment closure transactions, the Turkish lira equivalent of the customs declaration or invoice amount is calculated based on the Central Bank foreign exchange buying rate on the date the customs declaration or invoice submitted by the company to the intermediary bank was issued, and the commitment realization status is determined.

(4) In the event that the export or foreign exchange earning services and activities subject to rediscount financing provided against commercial promissory notes issued in Turkish lira are partially or completely unfulfilled, a sanction is applied to the unfulfilled portion of this commitment at a profit share rate calculated by adding 300 basis points to the profit share rate applied to the financing.

(5) For rediscount financings provided against commercial promissory notes issued in Turkish lira from the date this article enters into force until 31 December 2020, in addition to the export commitment in Article 16 of this Implementation Instruction, the condition of maintaining or increasing employment has been introduced. In this context, the number of persons employed by companies using rediscount financing against promissory notes issued in Turkish lira during the financing maturity must be equal to or above the number of persons employed as of the end of March 2020. The numbers of persons employed by the companies are documented to the intermediary bank using Social Security Institution records, through monthly Social Security Institution Insurance Premium Accrual Slips or a letter to be obtained from the Social Security Institution. Companies that declared records for February 2020 during the financing utilization application may, if they request, replace these records with records for the end of March 2020. The realization status of the condition of maintaining or increasing employment must be documented by the companies to the intermediary bank using Social Security Institution records for the number of employees at the end of March, June, September, and December during the financing maturity and at the end of the month in which the financing maturity falls. The intermediary bank checks whether the average of the employee numbers reported to it is below the number of persons employed as of the end of March 2020 and reports the result to the General Directorate within two months following the loan maturity.

(6) In the event of a decrease in the number of persons employed by the company due to the justified reasons specified in this paragraph, there is no violation of the condition of maintaining or increasing employment introduced within the scope of the fifth paragraph of this article. The decrease in the number of persons employed due to justified reasons is taken into account only for the month in which the decrease occurs and the following months. The decrease in the number of persons employed based on justified reasons must be documented to the intermediary bank with a copy of the Insured Employee Exit Notification submitted to the Social Security Institution or the relevant Social Security Institution records. Furthermore, it must be documented to the intermediary bank with the Insured Employee Entry Notification submitted to the Social Security Institution or the relevant Social Security Institution records that the employee who left was among the company's registered employees as of the end of March 2020. The reason for the insured person's exit (code) in the Insured Employee Exit Notification being number 3, 5, 8, 9, 10, 14, 23, 24, or 29 is considered a justified reason.

(7) In the event that the condition of maintaining or increasing employment specified in the fifth paragraph of this article is not fulfilled, a sanction is applied to the financing amount at an annual profit share rate of 1.5 percent for the period from the date the financing was provided to the date the financing is repaid. The sanction amount is collected from the intermediary bank in the manner specified in the twelfth paragraph of Article 16 of this Implementation Instruction.

(8) The areas where the export and foreign exchange earning services rediscount financing amounts provided against commercial promissory notes issued in Turkish lira can be spent are; wage payments to employees, financing debt payments to banks other than early closure, payments made to companies for debts to suppliers and commercial debts, rent payments, payments made for the purchase of goods and services, and payments made to public institutions and organizations. Within the scope of this paragraph, only documents related to debts and expenses in Turkish lira are accepted. Invoice amounts related to domestic purchases of goods and services issued in foreign currency are accepted as debts in Turkish lira, provided that the invoice includes the Turkish lira equivalent of the relevant amount.

(9) The export and foreign exchange earning services rediscount financing amounts provided against commercial promissory notes issued in Turkish lira are transferred by the intermediary bank to a blocked account in the name of the company. The company can use the financing amount only for the payment transaction related to one of the expenditure areas listed in the seventh paragraph of this article, by submitting the relevant document to the intermediary bank. The intermediary bank determines whether the document submitted to it is within the scope of the said expenditure areas directly or by obtaining the opinion of the General Directorate.

PROVISIONAL ARTICLE 2- (1) From 12 August 2020 to 31 December 2020 (inclusive)

until that date, for export and foreign exchange earning services rediscount financings extended against commercial bills issued in Turkish lira, a profit share rate equal to the Central Bank policy interest rate shall be applied as the rediscount rate. Changes made in the Central Bank policy interest rates shall be deemed effective as of the effective date specified for the said policy interest rate on the Central Bank's website.

PROVISIONAL ARTICLE 3- (1) As of the date this article enters into force, additional export

the additional export price foreign exchange sale commitments relating to rediscount financings that were extended with a foreign exchange sale commitment and for which the foreign exchange sale transaction has not yet been realized are cancelled.

(2) Whether or not the foreign exchange sale transaction has been realized, all rediscount financings extended with an additional export price foreign exchange sale commitment shall be deemed to have fulfilled these commitments, and no sanction shall be imposed in connection with these commitments.

PROVISIONAL ARTICLE 4- (1) Firms that have used financing under Article 1 of Annex 1 of the Instruction before the date this article enters into force shall be subject to the new regulations introduced under the second paragraph of Article 1 of Annex 1.

PROVISIONAL ARTICLE 5- (1) For export and foreign exchange earning services rediscount financings extended against commercial bills issued in Turkish lira between 22/9/2023 and the date the amendment to the Implementation Instruction that creates this article enters into force, the profit share rate calculated in accordance with the first paragraph of Article 1 of Annex 1 of this Implementation Instruction shall be applied, and the difference between the profit share amount calculated at this rate and the profit share amount collected at the profit share rate applied at the time the financing was used shall be refunded.

PROVISIONAL ARTICLE 6- (1) The exceptional provisions that enter into force together with this article and that are regulated in the third paragraph of Article 1 of Annex 1 and in subparagraphs (c), (ç) and (d) of the fourth paragraphs of Article 2 of Annex 2 of this Implementation Instruction shall apply to all financings extended within the framework of Articles 1, 2 and 3 of Annex 1, Annex 2 and Annex 3 of the Implementation Instruction.

(2) From the loans for which a sanction amount has been collected due to breach of the commitment not to purchase foreign exchange; for the financing that is determined to fall within the exceptional provisions specified in the first paragraph of this article or for which the intermediary bank determines after collection that no breach occurred, the collected sanction amount shall be refunded, deducting the relevant BSMV amount if the BSMV amount has been paid to the tax office.

PROVISIONAL ARTICLE 7- (1) On the date this article enters into force, the amendments made in Article 4, first paragraph, subparagraph (ğ), Article 6, third, fourth, fifth, sixth and seventh paragraphs, Article 10, first paragraph, subparagraph (ç), and Article 16/A, first paragraph of this Implementation Instruction regarding the exporter score application, as well as Annex-6/A and Annex-6/B shall enter into force on 13 January 2025; the other amendments made in Article 4, first paragraph, subparagraph (b), Article 5, first paragraph, and Article 13, first paragraph regarding the method to be used in interest calculation of financings shall enter into force on the date of publication.

(2) In rediscount financing applications to be made until 13 January 2025 with the surety of credit guarantee institutions established in accordance with Article 11/A of the Decision No. 2016/9538 on Treasury Support Provided to Credit Guarantee Institutions, the condition of being a net exporter shall not be sought.

(3) Firms that have a rediscount financing balance after 13 January 2025 and whose exporter score remains below the determined threshold value may renew their rediscount financings maturing until 31 December 2025, provided that they are in the amount of the maximum financing balance.

PROVISIONAL ARTICLE 8- (1) The provision that enters into force together with this article and that is introduced by the amendment made to the fourth paragraph of Article 2 of Annex 2 of this Implementation Instruction shall apply to all financings extended within the framework of Articles 2 and 3 of Annex 2 and Annex 3 of the Implementation Instruction.

PROVISIONAL ARTICLE 9- (1) Before 5 December 2022, the Annex

of firms that have used financing under Article 1 of this Implementation Instruction, all of the amounts that they are obliged to bring to our country in Turkish lira against their exports to the Turkish Republic of Northern Cyprus (TRNC) in accordance with the regulation in the second paragraph of Article 9 of the Central Bank of the Republic of Turkey Export Communiqué shall be deemed as the foreign exchange export price for which the sale has been realized in terms of the foreign exchange sale obligations under the second paragraph of Article 1 of Annex 1 and Provisional Article 6 of this Implementation Instruction, and shall be included in the calculation of the obligation to sell foreign exchange at least equal to the financing amount.

(2) For financings whose foreign exchange sale commitment breach is removed due to falling within the scope of the first paragraph of this article, the collected sanction amount shall be refunded, deducting the relevant BSMV amount if the BSMV amount has been paid to the tax office.

PROVISIONAL ARTICLE 10- (1) From the date this article enters into force until 14 November 2025

(inclusive), in financing utilizations to be made under Article 1 of Annex 1 of the Implementation Instruction, a financing application may be made without submitting the foreign exchange position form, provided that a written declaration is submitted by the relevant firm to the intermediary bank stating that the foreign exchange position ratio complies with the rules set out in the Implementation Instruction, that the foreign exchange position notification form will be submitted to the intermediary bank within 15 days from the financing application date, and that if the foreign exchange position ratio in the submitted form is above the ratio set out in this Implementation Instruction, it accepts that it cannot use export and foreign exchange earning services rediscount financing for one year.

(2) For financings extended under Article 1 of Annex 1 of this Implementation Instruction to companies that have given an undertaking not to purchase foreign exchange, the undertakings not to purchase foreign exchange given under the said article for financings whose maturity has expired or will expire after 28/02/2025 have been repealed.

(3) The obligation set out in Article 1 of Annex 1 of this Implementation Instruction regarding the transmission of the information in the foreign exchange position form submitted to the intermediary bank also to the Central Bank via SRVTS enters into force together with the announcement to be made by the Central Bank to the intermediary banks. Intermediary banks are obliged to inform the relevant companies about the announcement to be made by the Central Bank.

PROVISIONAL ARTICLE 11- (1) Of the Presidential Decision dated 20/11/2025 and numbered 10603

to the companies included in the fourth paragraph of Article 1 of the Decision annexed thereto, rediscount financing shall be extended against Turkish lira commercial papers with a remaining maturity of at most 90 days from the date this article enters into force until 31 December 2026.

(2) The procedures and principles regarding the financings to be extended under this article shall be notified in writing by the Central Bank to the banks decided to intermediate these financings.

(3) In cases where there is no special provision regarding the financings to be extended under this article, the other articles of this Implementation Instruction shall apply.

Entry into Force

ARTICLE 23- (1) This Implementation Instruction was adopted by the Decision of the Management Committee dated 24 December 2019 and numbered 52422, and enters into force on 24 December 2019.

Execution

ARTICLE 24- (1) The Governor of the Central Bank of the Republic of Turkey shall execute this Implementation Instruction.

	AMENDMENTS TO THE IMPLEMENTATION INSTRUCTION
	Amended/Repealed Articles of the Implementation Instruction	Date of Entry into Force
1.	8/1, 8/2-ç, Annex-7, Annex-8	12/02/2020
2.	4/1-ı, 4/1-i, 5/1-c, 9/4, 9/5, 13/1, 16/4, Annex-1/A, Annex-1/B, Annex-7, Annex-8	17/03/2020
3.	2/1, 4/1-f 5/1-b, 5/1-c, 7/5, 9/2, 9/3, 9/4, , 9/6, 10/8, 10/11, 11/3-e, 12/1, 12/2, 12/3, 12/4, 13/1, 13/2, 14/5, 14/7, 14/8, 15/2, 15/3, 15/4, 15/8, 15/9, 16/9, 16/11, 17/1, 19/1, 19/2, 19/3, 23, Provisional Article 1, Annex-1/D, Annex-2, Annex-4, Annex-5, Annex-6	31/03/2020
4.	10/1, Provisional Article 1/5, Provisional Article 1/6, Provisional Article 1/8, Provisional Article 1/9	03/05/2020
5.	5/1-c, 9/6-a, 13/1	07/08/2020
6.	9/4, 9/6-b, 13/2, Provisional Article 1/1, Provisional Article 1/4, Provisional Article 2	11/08/2020
7.	4/1-j, 4/1-k, 5/1-c, 16/4, Provisional Article 1/6, Annex-1/A, Annex-1/B, Annex-4, Annex-5, Annex-6	30/12/2020
8.	Annex-5	26/02/2021
9.	Annex-6	02/04/2021
10.	4/1-d, 4/1-e, 4/1-h, 4/1-j, 4/1-k, 5/1-c, 5/1-ç, 6/3, 6/4, 6/5, 6/6, 6/7, 9/1, 9/2, 9/3, 9/4, 9/5, 10/1, 10/5, 12/2, 13/2, 13/4, 13/A, 13/B, 14/A, 16/12, 16/A, Additional Article 1, Annex-1/A, Annex-1/B, Annex-1/C, Annex-1/D, Annex-4, Annex-5, Annex-6, Annex-7	01/10/2021
11.	5/1-ç, 9/3, 13/B/5, Additional Article 1/2, Additional Article 1/3, Additional Article 1/4, Additional Article 1/5, Additional Article 1/6, Additional Article 1/8, Additional Article 1/10	15/10/2021
12.	5/1-c, 5/1-ç, 13/2, 13/B/1, 13/B/2, 14/A/1, 14/A/2, 14A/3, Additional Article 1, 14/A/1	27/10/2021
13.	9/3-c, 9/4, 13/A/1, 13/A/3, Additional Article 1/7	09/11/2021
14.	5/1-c, 5/1-ç, 6/6, 6/8, 9/2, 9/3, 9/4, 9/5,13/2, 13/A/1, 13/B/1, 16/17, Additional Article 1/1, Additional Article 1/3, Additional Article 1/4, Additional Article 1/5, Additional Article 1/8, Additional Article 1/13	08/02/2022
15.	6/4-f, 6/8, 16/17	09/02/2022
16.	Annex-7	15/02/2022
17.	6/8, 16/3, 16/4	24/03/2022
18.	Annex-7	13/04/2022
19.	13/B/1, Additional Article 1/2, Additional Article 1/8, Provisional Article 3,	15/04/2022
20.	5/1-ç, 9/3-c, 16/13, Additional Article 1/1, Additional Article 1/3, Additional Article 1/4, Additional Article 1/5	10/06/2022
21.	13/3, Additional Article 1/7	29/08/2022
22.	Additional Article 1/10	07/09/2022
23.	9/3, 9/3-c, 9/5, 13/3, Additional Article 1/1, Additional Article 1/8, Additional Article 1/10	05/12/2022
24.	9/4	24/01/2023
25.	Annex-6, Annex-7	21/02/2023
26.	5/1-ç, Additional Article 1/1, Additional Article 1/3-a, Additional Article 1/3-b, Additional Article 1/3-c, Additional Article 1/3-g, Additional Article 2, Additional Article 3	15/03/2023
27.	6/4-f, Additional Article 1/2, Additional Article 2/2-a, Additional Article 1/2-b, Additional Article 1/2-c, Additional Article 1/2-d, Additional Article 1/2-f, Additional Article 1/2-f, Additional Article 1/2-g , Additional Article 1/3, Additional Article 1/9, Additional Article 1/12, Additional Article 2/10, Additional Article 3/7, Provisional Article 6	24/07/2023
28.	4/1-ğ, 4/1-h, 4/1-i, 4/1-j, 6/3, 9/3, Additional Article 1/1, Additional Article 1/2-d, Provisional Article 5, Annex-5	05/10/2023
29.	Annex-5	23/11/2023
30.	Annex-6, Annex-7	22/04/2024
31.	Additional Article 1/2-a, Additional Article 1/2-c, Additional Article 1/2-e, Additional Article 1/3, Additional Article 2/3-a, Additional Article 2/3-b, Additional Article 2/3-c, Additional Article 2/4,	01/07/2024
32.	13/B/1, Additional Article 1/2-d, Additional Article 2/3-d	08/07/2024
33.	Additional Article 1/3-c, Additional Article 1/3-ç, Additional Article 1/3-d, Additional Article 2/4, Provisional Article 6,	09/09/2024
34.	4/1-ö, 4/1- p, 5/1-b, 6/3, 6/4, 6/5, 6/6, 6/7, 10/1-ç, 13/1, 16/A/1, Provisional Article 7/, Annex-4, Annex-6/A, Annex-6/B, Annex-76, Annex-8	08/10/2024
35.	Additional Article1/2-c, Additional Article 1/3-b, Additional Article 2/3-c, Additional Article 2/4, Additional Article 2/4-b, Provisional Article 8	18/10/2024
36.	Temporary Article 9	15/11/2024
37.	10/1-f, 13/A/4, Additional Article 1/8-c	22/11/2024
38.	Article 6/9, Article 13/B, Article 14/A, Article 16/A, Additional Article 1/5, Additional Article 1/9, Additional Article 1/11, Additional Article 2/2, Additional Article 2/5, Additional Article 2/8, Additional Article 4	13/11/2024
39.	Article 16/13, Annex-5	26/12/2024
40.	Additional Article 1/2-a, Additional Article 1/2-c, Additional Article 2/3-a	03/03/2025
41.	2/1, 4/1-a, 4/1-b, 4/1-c, 4/1-ç, 4/1-e, 4/1-n, 4/1-s, 4/1-t, 4/1-u, 5/3, 6/1, 6/3, 6/4-d, 6/6, 6/9, 7/3, 7/4, 7/5, 7/6, 7/7, Article 7/A, 9/1, 10/1-a, 10/3, 10/6, 10/7, 10/10, 12/1, 12/2, 12/3, 13/1, 13/2, Article 13/A/1, Article 13/A/2, Article 13/A/4, 14/1, 14/2, 14/5, 14/6, 14/7, 14/8, 14/9, 14/10, 14/11, 14/12, 15/1, 15/2, 15/3, 15/4, 15/9, 15/10, 15/11, 16/10-e, 16/12, 16/13, 17/1, 19, 21/1, 21/5, 21/6, Additional Article 1/1, Additional Article 1/2, Additional Article 1/2-d, Additional Article 1/5, Additional Article 1/7, Additional Article 1/8, Additional Article 1/8-a, Additional Article 1/8-c, Additional Article 1/10, Additional Article 1/11, Additional Article 2/1, Additional Article 2/2, Additional Article 2/3, Additional Article 2/3-b, Additional Article 2/3-c, Additional Article 2/6, Additional Article 2/7, Additional Article 2/9, Additional Article 3/1, Additional Article 3/2, Additional Article 3/3, Additional Article 3/4, Additional Article 3/6, Additional Article 4/1, Additional Article 4/2, Annex-1/A, Annex-1/B, Annex-1/C, Annex-1/D, Annex-2, Annex-3, Annex-5, Annex-6/A, Annex-7, Annex-8, Annex-9	03/03/2025
42.	Temporary Article 10	05/05/2025
43.	4-1/ü, 9/3, Additional Article 5, Temporary Article 11	01/08/2025
44.	4/1, 5/1-c, 5/1-ç, 6/4-ç, 16/5-13-17, Additional Article 1, Additional Article 2/6, Additional Article 3/3, Additional Article 4/1, Temporary Article 12, Annex-8, Annex-9	01/11/2025
45.	Temporary Article 13	04/11/2025
46.	4/1-z, 16/4, 16/11, 16/13, Additional Article 1/2, Additional Article 1/14, Additional Article 1/16, Additional Article 4/1, Temporary Article 10, Temporary Article 11, Temporary Article 13, Annex/4	08/01/2026
47.	Annex-5	22/01/2026
48.	Temporary Article 11	26/01/2026
49.	9/3-a-c, 14/10, Additional Article 1/4, Additional Article 1/8	13/02/2026
50.	4/1-e, 4/1-ı, 13/A/1-2-3-5, Additional Article 1/13, Additional Article 2, Additional Article 3, Annex-4	18/06/2026

ANNEXES:

1- Rediscount Eligibility Application Form (Annex-1/A, Annex-1/B and Annex-1/C)

2- Export and Foreign Exchange Earning Services Rediscount Financing Bill Undertaking (Annex-2)

3- Our Correspondent Banks with Which Receivable Registration Will Be Made, Swift Bic Codes and Account Numbers (Annex-3)

4- Undertaking of Compliance with Export and Foreign Exchange Earning Services Rediscount Financing Conditions (Annex-4)

5- Export and Foreign Exchange Earning Services Rediscount Financing Profit Share Calculation Formula (Annex-5)

6- Exporter Score Calculation Criteria (Annex-6/A) and Export Score Declaration Form (Annex-6/B)

7- Investment Agency Agreement on the Utilization of Rediscount Financing through the Turkish Eximbank Channel (Annex-7)

8- Foreign Exchange Position Notification Form (Annex-8)

PRE-SHIPMENT EXPORT REDISCOUNT FINANCING REQUEST FORM

CENTRAL BANK OF THE REPUBLIC OF TÜRKİYE
Head Office
General Directorate of Banking and Financial Institutions ANKARA

To Be Submitted for Rediscount
Bill Amount and Maturity:
Reference Number of the Financing Related to the Bill:
Trade Name and Address of the
Firm Using the Financing:
Tax Office to Which It Is Affiliated and the Province to Which It Is Affiliated:
Tax Identification Number:
Export Commitment (FOB):
Trade Name and Address of the
Intermediary Exporter Firm:
Tax Office to Which It Is Affiliated:
Tax Identification Number:
Rediscount Acceptance Amount Requested from the Central Bank:
Committed Country Where the Export Will Be Made:
Type and GTIP Number of the Goods Committed for Export1 :
Delivery and Payment Method:
Intermediary Bank Commission Rate (Additional profit share rate applied by the Bank, aval or letter of guarantee commission):
Information Regarding the Realized Export:
Trade Name and Address of the Importer Firm:
Country Where the Export Was Made2
:
Type and GTIP Number of the Exported Goods3
:
Delivery Method:
Customs Declaration
Date:
Number:
Amount:
Actual export date:

[1] The GTIP number must be reported with at least 4 digits.

[2] The Customs Declaration data submitted for the closing of the commitment shall be taken as basis.

[3] The GTIP number must be reported with at least 4 digits.

APPENDIX: 1/A

APPENDIX: 1/B

FOREIGN EXCHANGE EARNING SERVICES REDISCOUNT FINANCING REQUEST FORM

CENTRAL BANK OF THE REPUBLIC OF TÜRKİYE
Head Office
General Directorate of Banking and Financial Institutions ANKARA

Bill Amount and Maturity to Be Submitted for Rediscount:
Reference Number of the Financing Related to the Bill:
Trade Name and Address of the
Firm Using the Financing:
Tax Office to Which It Is Affiliated:
Tax Identification Number:
Service and Activity Income Commitment (amount excluding VAT):
Date and Number of the Tax, Duty and Fee Exemption Certificate:
Amount and Maturity of the Tax, Duty and Fee Exemption Certificate:
Rediscount Acceptance Amount Requested from the Central Bank:
Committed Country Where the Service Will Be Provided:
Service Type:
Information Regarding the Realized Service Commitment:
Country where the service was provided:
Intermediary Bank Commission Rate (Additional profit share rate applied by the Bank, aval or letter of guarantee commission):

APPENDIX: 1/C

FOREIGN EXCHANGE EARNING SERVICES (POST-SERVICE) REDISCOUNT FINANCING REQUEST FORM

CENTRAL BANK OF THE REPUBLIC OF TÜRKİYE
Head Office
General Directorate of Banking and Financial Institutions ANKARA

Trade name and address of the firm using the financing:
Tax office of the firm:
Tax identification number of the firm:
Trade name and address of the firm receiving the service:
Country where the service is performed:
Type of service:
Date and Amount of the Service Invoice:(*)
Amount Accepted for Rediscount:
Maturity of the Bill:
Reference Number of the Financing Related to the Bill:
Bank providing the payment guarantee:
Type of payment guarantee1
:
Date and number of the letter of credit:
Amount and maturity of the letter of credit:
Intermediary bank commission rate (additional profit share rate applied by the Bank, aval commission):

[*] If the number of invoices is more than one, an itemized list shall be provided.

[1] Aval, acceptance, etc. (In term letters of credit opened without envisaging the issuance of a bill, for which compliant documents have been presented, the date, number and amount of the letter of credit shall be written.)

EXPORT AND FOREIGN EXCHANGE EARNING SERVICES REDISCOUNT FINANCING BILL LETTER OF UNDERTAKING

CENTRAL BANK OF THE REPUBLIC OF TURKEY
To the Istanbul Branch Directorate
..................

We hereby accept and undertake to fully comply with the following conditions and, in the absence of any provision in this Letter of Undertaking, with the regulations, communiqués, circulars, instructions, tariff schedules and other regulations of your Bank that have been or will be issued by your Bank, in relation to the bills issued in foreign currency or Turkish lira regarding the financing we have extended as your agent through appropriate mechanisms based on term exports and/or export or foreign exchange earning service revenue commitments bearing the payment guarantee of a bank or our Bank from your Bank.

1- The bills shall be prepared to include the amount to be calculated by adding the profit share amount applied by the Central Bank to the net financing amount, and shall be financed by your Bank up to the principal amount.

The amounts accepted for rediscount shall be credited to your accounts at maturity or payment date value, without deducting any fee, expense or commission, and the situation shall be notified to your Bank on the same day via the RKYS.

The amounts accepted for rediscount, even if not collected, shall be paid by our Bank to your Bank at their maturity (or on the first following business day if it falls on a holiday), without any need for further warning or notice, in foreign currency for bills issued in foreign currency and in Turkish lira for bills issued in Turkish lira.

If any of the signatories of the bills accepted for rediscount fails due to reasons such as protest, bankruptcy, concordat, abandonment of business, suspension of payments, or any execution proceeding against them remaining inconclusive, or if we fail to submit the information that may be requested within the framework of Article 13 of this Letter of Undertaking to you within the prescribed period, we undertake to pay such amounts accepted for rediscount immediately and entirely in foreign currency within two business days following the first notification to be made by your Bank to us or to our legal domicile below by notary public or registered mail with return receipt or telegram or registered electronic mail using secure electronic signature, without waiting for their maturity.

2- In respect of bills accepted for rediscount, the profit share, commission, commitment commission and late payment penalty rates to be applied to us are the rates determined by your Bank for the said bills and specified in the instruction and tariff schedules.

Your Bank is authorized to collect, ex officio and without any prior notice or warning, the amounts accepted for rediscount, the commitment commission, the BSMV, the late payment penalty and all kinds of costs and expenses, and any sanctions that may be applied to your Bank for breach of incentive conditions, from our free demand deposit accounts held with your Bank, from any receivables arising from any account, and from any right and receivable of ours.

3- If the amounts accepted for rediscount are not paid to your Bank at maturity or, in the case of payments subject to notice, within two business days following the notice, are not credited to your correspondent accounts, or cannot be set off, offset and collected ex officio by your Branches from our accounts held with your Bank, a late payment penalty shall be applied from the day following maturity or, in the case of payments subject to notice, from the date of the notice.

Payment of the amounts accepted for rediscount shall not prevent the demand, follow-up and collection of the late payment penalty, commission and costs. If the amount accepted for rediscount has been paid in part for any reason, we accept and undertake that we shall pay the balance thereof, together with the late payment penalty and costs to be applied in accordance with the principles set forth above from the date on which payment is due, without the need for any notice or warning.

4- The follow-up, consequences and liabilities of any disputes that may arise regarding matters such as the validity of the signatures on the bills accepted for rediscount and the validity of the contract shall belong solely to our Bank.

5- The responsibility for checking and determining whether the bills accepted for rediscount comply with the formal requirements set forth in this Instruction shall belong solely to our Bank.

6- The responsibility for determining, following up, and the consequences and liabilities of the compliance of the companies for which intermediation in the use of rediscount financing is provided and the company representatives whose signatures appear on the bills with the criteria relating to creditworthiness set forth in the Export and Foreign Exchange Earning Services Rediscount Financing Implementation Instruction, and the continuation of such compliance throughout the financing term, as well as the responsibility for conducting the necessary intelligence studies regarding these companies, shall belong solely to our Bank.

7- The bills shall be endorsed by our Bank in the manner set forth in the Export and Foreign Exchange Earning Services Rediscount Financing Implementation Instruction, and possession thereof shall be transferred to your Bank by way of constructive delivery. Accordingly, the bills shall be held by our Bank on your behalf. In the event of loss or destruction of the bills, our Bank shall be liable for any and all damages that the Central Bank may incur. Following the collection of the amounts accepted for rediscount, a copy of the commercial bills and related documents, the originals of which are returned as required by the legislation, shall be provided to your Bank upon request, duly retained.

8- All follow-up and collection procedures for the bills, as well as the procedure for holding the bills on your behalf, shall be carried out by our Bank, and no fee, cost or commission (including correspondent fees, costs and commissions) shall be requested from your Bank in connection with such follow-up, collection and custody procedures.

In the event of non-payment, protests and follow-up proceedings shall be carried out by our Bank, and all expenses relating thereto shall also be borne by our Bank.

Your Bank is free to collect, protest and follow up the amount accepted for rediscount ex officio. However, this shall not eliminate the liabilities of our Bank.

In the event that our Bank is unable to make the repayments of the rediscount financing for which it has provided intermediation for any reason, it shall promptly deliver the bills and related documents it holds on behalf of the Central Bank, for which it has failed to make the repayment, to the Istanbul Branch. In the event that this procedure is not carried out, our Bank shall be liable for all damages, present and future, direct and indirect, of your Bank.

In the event of direct collection, protest and follow-up of the amounts accepted for rediscount by your Bank, the collection commission in your tariffs in force, the costs incurred by you, other costs you may incur, and all damages you may suffer as a result thereof shall be paid by our Bank to your Bank.

9- Your Bank shall be exempt from any and all commercial, legal and financial problems and disputes that may arise between the exporter and importer companies, the bank providing the payment guarantee, our Bank and other relevant parties.

In the event that the bills cannot be presented and collected for any reason, including force majeure, that the necessary collection and follow-up procedures cannot be carried out, that the debtors fail to pay due to any delays that may occur or due to forgery, invalidity, formal deficiency or other reasons, and in the event of loss of the bills, all obligations and liabilities shall belong to our Bank, and the amounts accepted for rediscount shall at all times be collected by your Bank ex officio from our accounts without the need for any further procedure.

10- All liabilities and obligations foreseen and to be foreseen in the Foreign Trade, Protection of the Value of Turkish Money, Funds, Export Incentive legislations and other legislation shall belong to our Bank, shall not be transferred to your Bank, and our Bank shall be responsible for all kinds of criminal sanctions.

11- In the event that any protest is drawn against our Bank, we suspend or defer our payments, this possibility arises, any enforcement proceeding against us remains inconclusive, we go bankrupt, or we cease trading, your Bank shall be entitled to demand from our Bank the payment of the amount accepted for rediscount to your Bank or to collect it ex officio from our accounts, even if the bill has not yet matured.

12- In the event of a subsequent dispute with your Bank arising from the bills accepted for rediscount, your books, records and documents shall be accepted by us as conclusive evidence.

13- Regarding the companies and persons whose signatures appear on the rediscount bills, any and all information and documents that may be requested by you as deemed necessary shall be obtained by us and provided to your Bank at the time specified by you.

14- The provisions of this Undertaking and all costs and taxes arising in connection with payment, present and future, shall be paid by us.

15- The provisions of this Undertaking shall be binding on the General Directorate and all Branches of our Bank.

16- We hereby declare that, for the purpose of notifying you of all kinds of notices and follow-ups regarding the fulfillment of the requirements of this Undertaking concerning bills accepted for rediscount, we have designated ............................................................ as our legal domicile and that we accept the Ankara Courts and Enforcement Offices as the competent court and enforcement office.

…… ….………….. Bank
General Directorate
Date
(Authorized Signatures)

Limit Amount
In Figures
In Words

[1] The address of the Bank's General Directorate legal domicile and the e-mail address shall be written.

OUR CORRESPONDENT BANKS WITH WHICH CREDIT ENTRIES WILL BE MADE, THEIR SWIFT BIC CODES AND OUR ACCOUNT NUMBERS

Currency	Bank Name	Swift BIC	Account No
USD	Federal Reserve Bank of New York, NEW YORK	FRNYUS33	021086032
USD	Bank of America, National Association	BOFAUS3N	6550-5-86926
EUR	J.P. Morgan SE	CHASDEFX	6231419299

ANNEX: 4
.../.../……

UNDERTAKING OF COMPLIANCE WITH THE CONDITIONS FOR EXPORT AND FOREIGN EARNING SERVICES REDISCOUNT FINANCING

Regarding the export and foreign earning services rediscount financing application in the amount of …………………………....….. which we submitted to your Bank to be extended to the firm …………………………....…..;

1) That our Bank has determined, in accordance with the relevant regulations, that the exporter score of the applicant firm, as specified in the Export and Foreign Earning Services Rediscount Financing Implementation Instruction, is above the determined threshold / that the firm satisfies one of the conditions that allow financing to be extended without an exporter score,1

2) That the foreign exchange position declaration form has been received from the firm, that the declared foreign exchange position ratio does not exceed the upper limit specified in the Instruction, that the firm will be promptly informed if your Bank requests the foreign exchange position form to be submitted retrospectively by the firm, that your Bank will be promptly informed if it is determined that the foreign exchange position ratio in the retrospectively submitted declaration exceeds the upper limit specified in the Instruction, and that the other usage conditions are met,

3) That we will extend the financing in accordance with the conditions related to the expenditure areas specified in the Instruction, that the sanctions specified in the Instruction will be applied in case of disbursement and repayment contrary to these matters, and that the firms have been informed that rediscount financing amounts cannot be used by the firms in any way to obtain financial profit and that the written declaration of the firms on this matter has been obtained,

4) That the sanctions specified in the Instruction will be applied in case the undertakings given by the firms are violated or the notifications regarding whether the undertakings have been realized are not made to your Bank in a timely manner,

5) We will forward to the company the notification to be made by your Bank regarding the sanctions in the Instruction, that the company has a period of 10 business days for the submission of new documents starting from the date this notification is communicated to us, and that if no notification is made to your Bank within this forfeiture period that the relevant commitment has been fulfilled, the sanction amounts will become final and be collected by your Bank, that documents submitted after the expiry of this forfeiture period will not be taken into consideration, and that the sanction amounts will not be refunded by your Bank,

6) We accept, declare and undertake in advance and without recourse that we have fully conveyed the content of this Letter of Commitment to the company using the financing and that all responsibility regarding these matters shall belong to our bank.

Date
(Authorized Signatures)

[1] In this section, whichever of the statements "that the exporter score is above the threshold" or "that one of the conditions allowing the extension of financing without an exporter score is met" is appropriate shall be written in the letter of commitment.

ANNEX: 5 TURKISH LIRA EXPORT AND FOREIGN EXCHANGE EARNING SERVICES REDISCOUNT FINANCING PROFIT SHARE RATE CALCULATION FORMULA 𝑚𝑖𝑛((0,70 ∗ 𝑃𝑜𝑙𝑖𝑡𝑖𝑘𝑎 𝐹𝑎𝑖𝑧𝑖), 0,2395) 1 + 𝑚𝑖𝑛((0,70 ∗ 𝑃𝑜𝑙𝑖𝑡𝑖𝑘𝑎 𝐹𝑎𝑖𝑧𝑖), 0,2395)

ANNEX: 6/A

EXPORTER SCORE CALCULATION CRITERIA

	Variable Category	Calculation Criterion	Weight Coefficient (%)
Performance Score	Net Export Ratio	Export / Import	20%
	Number of Countries	Number of countries exported to	10%
	Number of Products	Number of products exported	10%
	Net Export	Export - Import	10%
Potential Score	Company Scale	Turnover Size (-)	15%
	Technology Level	Export share by technology level	20%
	Change in Number of Countries	Number of Countries t / Number of Countries t-1	5%
	Change in Number of Products	Number of Products t / Number of Products t-1	5%
	Change in Net Export	Net Export t - Net Export t-1	5%

1- All calculations are made based on the information in the Export Score Declaration Form in Annex-6/B obtained from the companies.

2- Each "variable" is calculated in accordance with the calculation method shown in the table above and based on the calculation table to be announced by the Central Bank, which enables the automatic calculation of data based on the weights determined in the table.

3- For companies included in the BRSA's risk group definition, data are calculated on a group basis.

4- T.C. The amounts related to the import of the products listed in the Investment Goods List included in the annex titled "Annex-2: Investment Goods List" of the Circular on the Support of the Difference Between the Interest Rate Applied by Türk Eximbank and the CIRR and the Türk Eximbank Export Credit Insurance Indemnity Support published by the Ministry of Trade are not included.

5- It is possible to obtain an opinion regarding the calculation method of the variables via the following e-mail address:

Kambiyomevzuatgrubu@tcmb.gov.tr

EXPORTER SCORE DECLARATION FORM

ANNEX: 6/B

INTERMEDIARY BANK:
INFORMATION ON THE COMPANY APPLYING FOR CREDIT AND ITS PARTNERSHIP STRUCTURE
Company Title:
Company Address, Telephone and E-mail address:
Company Type:
Company TIN:
Tax Office with which the Company is Registered:
Company Field of Activity:
Main group company to which the enterprise is affiliated (if any):
MAIN FIELD OF ACTIVITY AND SCALE INFORMATION
Sector (NACE Rev.2 4-digit code):
Scale (1- Large, 2- Medium, 3- Small, 4- Micro):
Number of Employees:
Total Asset Size (Thousand TL):
FINANCIAL INFORMATION OF THE ENTERPRISE
Financial Information	Last Financial Balance Sheet Year	Previous Financial Balance Sheet Year
Exports (USD)
High-Technology Product Exports (USD)
Medium-High Technology Product Exports (USD)
Medium-Low Technology Product Exports (USD)
Number of Countries Exported To (Units)
Number of Different Products Exported (Units)
Average Overseas Receivable Maturity (Days)
Imports (USD)
Investment Goods Imports (USD)
Net Sales (TL)
Total Exports of the Affiliated Group (USD)
Total Imports of the Affiliated Group (USD)
Total Investment Goods Imports of the Affiliated Group (USD)

INVESTMENT AGENCY AGREEMENT ON THE EXTENSION OF REDISCOUNT FINANCING THROUGH TÜRK EXİMBANK CHANNEL

1. DEFINITIONS

1.1. Interest-Free Banking Principles and Standards: Refers to the principles and standards determined by the TKBB Advisory Board and its general decisions taken, with reference to paragraph (b) of Article 3 of the Communiqué on Compliance with Interest-Free Banking Principles and Standards.

1.2. TCMB: Refers to the Central Bank of the Republic of Turkey.

1.3. Türk Eximbank: Refers to Türkiye İhracat Kredi Bankası A.Ş.

1.4. Implementation Instruction: Refers to the Central Bank of the Republic of Turkey Export and Foreign Exchange Earning Services Rediscount Financing Implementation Instruction.

1.5. Parties: Refers to the Central Bank of the Republic of Turkey and Türk Eximbank.

1.6. Fund Recipient: Refers to the party authorized to utilize the capital in investment agency transactions.

1.7. Fund Provider: Refers to the party that owns the capital in investment agency transactions.

2. PURPOSE OF THE AGREEMENT

2.1. The purpose of the Agreement is to determine the procedures and principles regarding the extension of financing by Türk Eximbank to its customers and/or to Participation Bank customers through Participation Banks, in accordance with the Implementation Instruction and Interest-Free Banking Principles and Standards, of the fund that TCMB may extend to Türk Eximbank within the scope of Article 7/A of the Export and Foreign Exchange Earning Services Rediscount Financing Implementation Instruction.

3. GENERAL PRINCIPLES

3.1. This Agreement is in the nature of an additional protocol subject to the Implementation Instruction. In this context;

3.1.1. In cases where there is no provision in this Agreement, the provisions contained in the Implementation Instruction and other annexes of the Implementation Instruction shall be taken as basis.

3.1.2. In the event that a provision in this Agreement conflicts with any of the provisions contained in the Implementation Instruction or other annexes of the Implementation Instruction, the relevant provision in the Implementation Instruction or other annexes of the Implementation Instruction shall prevail.

3.2. TCMB transfers funds to Türk Eximbank through the Investment Agency Agreement within the scope of the Implementation Instruction. In this Investment Agency Agreement, TCMB is the party providing funds to Türk Eximbank, and Türk Eximbank is the party extending the fund directly to its own customers and/or to Participation Bank customers through Participation Banks in its capacity as Investment Agent.

4. OPERATION

4.1. Türk Eximbank shall extend the fund amounts extended to it by TCMB within the scope of Article 3.2 of this Agreement directly to its own customers and/or to Participation Bank customers through Participation Banks. In this context, the relationships set out below shall be established:

4.1.1. Fund relationship between TCMB and Türk Eximbank,

4.1.2. Financing relationship between Türk Eximbank and its own customers directly,

4.1.3. An agency and commitment relationship between Türk Eximbank and Participation Banks,

4.1.4. Financing relationship between Türk Eximbank and Participation Bank customers (through Participation Banks).

4.2. Within the scope of this Investment Agency Agreement, TCMB shall not in any way have the capacity of a financier in the financings extended by Türk Eximbank to its customers. Türk Eximbank shall solely have the capacity of financier in the financings it extends. Within the scope of this Agreement, TCMB has the capacity of fund provider to Türk Eximbank. The principal debtor of the financing provided by the Central Bank is Türk Eximbank. All responsibility regarding the extension of financings in accordance with the provisions of the Implementation Instruction belongs to Türk Eximbank.

4.3. In the investment agency relationships to be established between TCMB and Türk Eximbank within the scope of Article 3.2 of this Agreement, TCMB is the fund-providing party and Türk Eximbank is the fund-operating party. The investment agency to be given by TCMB to Türk Eximbank within the scope of the fund is in the nature of a conditional agency. The matter relating to the condition specified herein consists of the amount of fund received by Türk Eximbank from TCMB being used for financing within the scope of the relationships specified in Article 4.2 of this Agreement and in accordance with the principles and procedures determined by TCMB in the Implementation Instruction and the Interest-Free Banking Principles and Standards. No authority is granted to Türk Eximbank under the agency or under any name or form to extend financing on behalf of TCMB. Türk Eximbank shall act in its own name and for its own account in each financing it extends to its customers. Türk Eximbank shall extend the fund amounts it obtains from TCMB by complying with all the conditions contained in the provisions of the Implementation Instruction and other annexes of the Implementation Instruction, within the framework of the fund extension methods regulated in Article 16 of the Regulation on Banks' Credit Transactions.

4.4. Türk Eximbank accepts, declares and undertakes that it will not use the amounts transferred to it by way of investment agency for any purpose other than those specified in Article 4.2 of this Agreement and that it will fully comply with the provisions contained in the Implementation Instruction and other annexes of the Implementation Instruction while extending financing, and otherwise it shall be deemed to have failed to fulfill the conditions to which the conditional agency authority granted to it is subject.

4.5. For the purposes of this Agreement, the concepts and their meanings within the scope of implementation in the investment agency relationships between TCMB and Türk Eximbank are listed below:

4.5.1. Investment Agency: The transfer by TCMB of the amount subject to financing to be extended by Türk Eximbank within the scope of the Implementation Instruction by providing funds to Türk Eximbank.

4.5.2. Investment Agency Amount: It is the amount transferred by the CBRT to Türk Eximbank by providing funds for each financing.

4.5.3. Expected Profit: For each investment agency, it is the difference between the final repayment amount that must be paid to the CBRT at maturity in accordance with the Implementation Instruction and that will be calculated separately for each financing, and the financing amount that Türk Eximbank has extended as financing.

4.6. Türk Eximbank collects the Investment Agency fee in advance from the amount sent by the CBRT as an investment agency for the specific transaction. The Investment Agency fee is calculated over the amount of the negotiable instrument to be issued for each transaction of the investment agency. The CBRT has the right to recall the fund subject to this Contract before maturity, when it deems necessary, without being subject to any condition.

This Contract, consisting of four (4) articles and sub-articles, has been signed between the parties on ………………. in two copies.

TÜRKİYE İHRACAT VE KREDİ
BANKASI A.Ş.

TÜRKİYE CUMHURİYET MERKEZ
BANKASI

FOREIGN EXCHANGE POSITION NOTIFICATION FORM

(Do not delete rows or columns. Write the amounts using only numbers, without leaving spaces. Base your accounting records on when filling out the form.)

Notification Date:

Company Title
TIN		Phone / E-mail
I - ASSETS (FOREIGN EXCHANGE AND GOLD ASSETS)	TL EQUIVALENT	II - LIABILITIES (FOREIGN EXCHANGE AND GOLD LIABILITIES)	TL EQUIVALENT
1.1. Cash		2.1. Financial Debts
1.2. Cheques Received		2.1.1. Loans
1.3. Banks		2.1.1.1. Domestic Loans
1.3.1. Domestic Deposits		2.1.1.2. Foreign Loans
1.3.2. Foreign Deposits		2.1.2 Financial Leasing Debts
1.4. Cheques Issued and Payment Orders		2.1.3. Securities Issued
1.5. Other Liquid Assets		2.1.4. Other Financial Debts
1.6. Securities		2.2. Trade Payables
1.7. Trade Receivables		2.2.1. Domestic Trade Payables
1.7.1. Domestic Trade Receivables		2.2.2. Foreign Trade Payables
1.7.2. Foreign Trade Receivables		2.3. Payables to Partners, Associates and Subsidiaries
1.8. Receivables from Partners, Associates and Subsidiaries		2.4. Other Payables
1.9. Other Receivables		2.5. Advances
1.10. Construction and Repair Costs Spread Over Years		2.6. Construction and Repair Progress Payments Spread Over Years
1.11. Income Accruals		2.7. Expense Accruals
A. Total Liquid Foreign Exchange Assets (1.1 + 1.2. + 1.3 - 1.4 + 1.5 + 1.6 + 1.8)		B. Net Sales Revenue
C. Total Assets (All Assets in TL/FC)		Foreign Exchange Position Ratio (A / max{B, C})
Compliance of the Foreign Exchange Position Ratio

I declare that the data of the company in this form have been prepared in accordance with the accounting records.

Signature
Name surname
CPA/Sworn CPA

We declare that we permit the data belonging to our company contained in this form to be shared with the Central Bank of the Republic of Turkey and the intermediary bank and that it is accurate.

Signature
Signature
Name surname
Name surname
General Manager
Finance Manager

Foreign Exchange Position Ratio:

1.1. Cash + 1.2. Cheques Received + 1.3. Banks − 1.4. Cheques and Payment Orders Issued + 1.5. Other Liquid Assets + 1.6. Securities + 1.8. Amount of Receivables from Partners, Associates and Subsidiaries That Is Greater Than Total Assets or Net Sales Revenue

Explanations:

(1) In filling out the form, the explanations in the document titled “Systemic Risk Data Tracking System Explanation Form” located at www.tcmbveri.gov.tr are taken into account.

(2) After the Foreign Exchange Position Notification Form is prepared and signed by the CPA/Sworn CPA, the company officials confirm and sign the accuracy of the information in the form and submit it to the intermediary bank.

(3) The notification date refers to the date at the end of the reporting periods in the Systemic Risk Data Tracking System Explanation Form, and in interim period reporting, to the date on which the reporting is made.

(4) Companies with a special accounting period must report in periods appropriate to their balance sheet periods.

(5) The total assets amount is the most current year-end balance sheet total assets amount reported to the Revenue Administration, and the net sales revenue is the total annual net sales revenue reported in the same period.

(6) Newly established companies that do not report total assets data to the Revenue Administration report the net sales revenue amount that they will calculate by annualizing (multiplying by four) the most current quarterly net sales revenue reported to the Revenue Administration.

(7) Cheques and payment orders issued are reported as a positive value. However, it should be noted that this value must be deducted in the calculation of the total liquid foreign exchange assets and the foreign exchange position ratio.