Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

TURKEY

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of February 28, 2007)

Status under IMF Articles of Agreement
Article VIIIDate of acceptance: March 22, 1990.
Exchange Measures
Restrictions and/or multiple currency practicesNo restrictions as reported in the latest staff report as of December 31, 2006.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)Yes.
Other security restrictionsYes.
References to legal instruments and hyperlinksn.a.
Exchange Arrangement
CurrencyThe currency of Turkey is the new Turkish lira, which replaced the Turkish lira at the rate of YTL 1 per TL 1 million. Effective January 1, 2006, the new Turkish lira became the sole legal tender.
Exchange rate structureUnitary.
Classification
Independently floatingThe exchange rate of the lira is determined on the basis of supply and demand in the foreign exchange market. The Central Bank of the Republic of Turkey (CBRT) conducts daily auctions to build up reserves whereby it buys a fixed amount of dollars and provides the successful bidders with the option to purchase up to 200% of their successful bid amount at the average auction price. The daily fixed purchase amount was raised to $20 million in 2006. The daily foreign exchange purchase auctions were suspended on May 16, 2006, in response to financial market volatility. On June 26 and June 27, 2006, the CBRT held foreign exchange auctions under which it sold $500 million on each day through multiple price auctions. On November 10, 2006, the CRBT resumed its daily foreign exchange auction program, with a daily fixed purchase amount of $15 million.



The CBRT reserves the right to intervene in the foreign exchange market in case of excessive volatility in the foreign exchange rates.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketBanks may carry out forward transactions according to Article 4/i of the Banking Law. Precious metal brokerage institutions may engage in forward transactions without authorization, except for those conducted under the rules established by the Capital Market Board.
Official cover of forward operationsThe CBRT may carry out swap, forward, and derivative transactions with respect to its reserve position in light of the exchange rate policy.
References to legal instruments and hyperlinkswww.tcmb.gov.tr/yeni/duyuru/2005/DUY2005-59.pdf (for currency reform in Turkish); www.tcmb.gov.tr/yeni/announce/2006/2007MonPol.pdf (for exchange rate policy); www.tcmb.gov.tr/yeni/announce/2005/ANO2005-46.htm (for 2006 foreign exchange purchase auctions); www.tcmb.gov.tr/yeni/announce/2006/ANO2006-49.htm (for 2007 foreign exchange auctions); Banking Law: www.tbb.org.tr/english/5411.doc; Decree No. 32 on the Protection of the Value of Turkish currency; www.hazine.gov.tr/english/bak/exlegislation/decree.doc.
Arrangements for Payments and Receipts
Prescription of currency requirements
Use of foreign exchange among residentsYes.
Payments arrangements
Bilateral payments arrangements
OperativeYes.
Clearing agreementsCertain commercial transactions with Poland are made through special accounts denominated in dollars.
Barter agreements and open accountsYes.
Administration of controlThe Undersecretariat of the Treasury and the CBRT administer exchange controls.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)
On external tradeIn accordance with the Foreign Trade Regime, exports and imports of precious metals and stones or articles containing them may be conducted freely. Only the CBRT and intermediary institutions dealing in precious metals that are members of the Istanbul Gold Exchange (IGE) may import unprocessed precious metals (gold, silver, platinum) without being subject to the provisions of the Foreign Trade Regime, but the latter must surrender the gold to the IGE within three days. Selling operations of imported gold should initially take place in the IGE.



Banks may open gold deposit accounts for natural and juridical entities residing in Turkey and abroad. The account holders should surrender processed gold to banks in order to open gold deposit accounts. Banks may trade in precious metals according to Article 4/h of the Banking Law.



Within the framework of the banking regulations, banks may extend gold credits to customers. The buying and selling prices of gold are freely determined by banks. Intermediary institutions dealing in precious metals may obtain gold credits from abroad for their own account and/or for the accounts of their customers. However, gold obtained as a credit should be transferred to the IGE within three days.



Travelers may bring into and take out of the country ornamental articles made from precious metals and stones with a value not exceeding the equivalent of $15,000. The export of ornamental articles exceeding this value is dependent on their declaration on arrival or proof that they have been purchased in Turkey.
Controls on exports and imports of banknotes
On exports
Domestic currencyTravelers may freely take abroad up to the equivalent of $5,000.
Foreign currencyTravelers may freely take out of the country up to the equivalent of $5,000. To take out more than this amount, nonresidents must declare banknotes on arrival, and residents must present a document confirming that the foreign banknotes were purchased from banks (including participation banks) for invisible transactions.
References to legal instruments and hyperlinksDecree No. 32 on the Protection of the Value of Turkish Currency; www.hazine.gov.tr/english/bak/exlegislation/decree.doc; Banking Law; www.tbb.org.tr/english/5411.doc.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadControls apply to deposits of funds with nonresident financial institutions if these assets are to form part of the cover of the technical reserves of an insurance company.
Accounts in domestic currency held abroadControls apply to deposits of funds with nonresident financial institutions if these assets are to form part of the cover of the technical reserves of an insurance company.
Accounts in domestic currency convertible into foreign currencyNo.
References to legal instruments and hyperlinksDecree No. 32 on the Protection of the Value of Turkish Currency; www.hazine.gov.tr/english/bak/exlegislation/decree.doc.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsYes.
Convertible into foreign currencyNo.
Blocked accountsNo.
References to legal instruments and hyperlinksDecree No. 32 on the Protection of the Value of Turkish Currency; www.hazine.gov.tr/english/bak/exlegislation/decree.doc.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsNo.
Import licenses and other nontariff measures
Negative listImports of certain items are restricted or prohibited for environmental, security, health, or public morality reasons, or in accordance with international obligations. These items include certain carcinogenic coloring substances, chemicals used in the production of chemical weapons or other arms and ammunition, counterfeit labels, gambling instruments, narcotics, and ozone-depleting substances. Import licenses, which are issued by the relevant authorities, are required for a limited group of items, including some machinery, some motor vehicles, some chemicals, and a number of items related to civil aircraft. Imports of old, used, renovated, faulty, or obsolete goods are subject to permission from the Undersecretariat of Foreign Trade, but certain goods that are not more than 10 years old may be imported freely.



Effective January 1, 2007, for agricultural products, Turkey issued import licenses for the allocation of tariff quotas stemming from preferential trade agreements and autonomous tariff quotas.
Licenses with quotasWith the expiration of the WTO ATC, quotas on textiles and clothing under that agreement, and those implemented to harmonize Turkey’s import policy with that of the EU, were abolished. Quotas remain in place for four non-WTO members. Effective January 1, 2007, quotas are imposed on imports of certain textiles and clothing under 44 categories from China in accordance with Paragraph 242 of the Report of the Working Party on the accession of China to the WTO.
Import taxes and/or tariffsTurkey applies the EU’s GSP and the GSP rates that are indicated in List II of the Import Regime. In this context, preferences are granted for all industrial products and certain agricultural products covered by the EU’s GSP scheme. Least developed countries have duty- and quota-free access to the Turkish market for all industrial products falling under chapters 25–97 (except chapter 93) and for some agricultural products covered by the customs union between Turkey and the EU. Whereas all duties on products covered by the Turkish GSP scheme have been suspended for the countries benefiting from the special incentive arrangements, in line with the EU’s GSP scheme, for developing countries the duties have been suspended or reduced in accordance with the sensitivity of the products covered. Beneficiary countries are announced annually in annexes of the import regime decree.



Effective January 1, 2007, the following simple average tariff rates apply to imports: (1) industrial products, 4.2% and zero for imports from other countries, and from the EU and EFTA, respectively; and (2) agricultural products, 59.3% and 58.2% for imports from other countries, and from the EU and EFTA, respectively.
State import monopolyNo.
References to legal instruments and hyperlinksn.a.
Exports and Export Proceeds
Repatriation requirementsYes.
Surrender requirements
Surrender to authorized dealersForeign exchange receipts must be surrendered to banks (including participation banks) within 180 days following the date of shipment. Exporters may unconditionally retain foreign exchange receipts abroad up to the equivalent of $100,000. If at least 70% of the foreign exchange receipts are surrendered within 90 days following the date of shipment, exporters are entitled to retain the remaining 30%, which they may deposit in foreign exchange accounts with commercial banks, keep abroad, or dispose of freely.
Financing requirementsNo.
Documentation requirements
Preshipment inspectionPreshipment inspections are carried out only if requested by the importing country.
Export licenses
Without quotasAll goods, other than those whose exportation is prohibited by law, decrees, or international agreements, may be exported freely within the framework of the Export Regime Decree. However, within the framework of WTO rules, restrictions and prohibitions on exports may be imposed in case of market turmoil; scarcity of the goods to be exported; public safety, morals, or health; or environmental concerns (this also applies to several varieties of flora and fauna). Restrictions and prohibitions also apply to exports of articles bearing artistic, historical, or archaeological value.
Export taxes
Other export taxesHazelnuts and unprocessed leather are subject to export taxes. The taxes are levied in the form of deductions payable to the Support and Price Stabilization Fund, at the rate of the equivalents of $0.08 and $0.04, and $0.50 a kilogram for shelled and in-shell hazelnuts, and unprocessed leather, respectively.
References to legal instruments and hyperlinksn.a.
Payments for Invisible Transactions and Current Transfers
Controls on these transfers
Credit card use abroad
Quantitative limitsEffective February 9, 2007, credit cards may be used on a revolving basis up to the equivalent of $50,000 (previously, $10,000). Balances exceeding this limit must be settled within 30 days.
Indicative limits/bona fide testYes.
References to legal instruments and hyperlinksArticle 19, subparagraph (10), of Communiqué No. 2007/32-33 published in the Official Gazette dated February 9, 2007, numbered 26429.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksn.a.
Capital Transactions
Controls on capital transactionsYes.
Repatriation requirementsNo.
Controls on capital and money market instrumentsPurchases and sales of domestic securities and other instruments by nonresidents and of foreign securities by residents may be effected freely. However, all transactions in securities must be carried out through banks and intermediary institutions authorized according to capital market legislation, and all related transfers must be performed through banks (including participation banks). Capital market instruments to be issued or offered to the public by resident legal persons other than public institutions may be freely sold abroad, subject to the condition that they be registered with the Capital Markets Board (CMB). The sale and issue of foreign securities and other instruments by nonresidents must be registered with the CMB.
On capital market securities
Shares or other securities of a participating nature
Sale or issue locally by nonresidentsControls apply to the (1) initial public offering and private placement of foreign capital market instruments, (2) public offering of foreign capital market instruments by their holders, and (3) public offering and private placement of depository receipts.
Purchase abroad by residentsControls apply to the purchase of securities issued by nonresidents if these assets are to form part of the cover of the technical reserves of an insurance company.
Sale or issue abroad by residentsThe sale or issue of these instruments is subject to CMB registration.
Bonds or other debt securitiesRules governing shares or other securities of a participating nature apply.
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsYes.
On money market instruments
Sale or issue locally by nonresidentsControls apply to the issue and public sale of money market securities, except for securities that are not regulated under the current legislation on capital markets, such as certificates of deposit and bankers’ acceptances.
Purchase abroad by residentsControls apply to the purchase of securities issued by nonresidents if these assets are to form part of the cover of the technical reserves of an insurance company.
On collective investment securities
Sale or issue locally by nonresidentsThe sale or issue of these instruments is subject to CMB registration.
Purchase abroad by residentsControls apply to the purchase of securities issued by nonresidents if these assets are to form part of the cover of the technical reserves of an insurance company.
Sale or issue abroad by residentsThe sale or issue of these instruments is subject to CMB registration.
Controls on derivatives and other instruments
Purchase abroad by residentsControls apply to the purchase of or swap operations in instruments and claims issued by or contracted with nonresidents if these assets are to form part of the cover of the technical reserves of an insurance company. In addition, controls apply to derivatives traded abroad if their underlying instruments are the same as those traded in local derivatives exchanges.
Controls on credit operationsCredits extended by nonresidents with a maturity of more than one year that are obtained by the public sector or guaranteed by the treasury must be registered in the External Financing Information System maintained by the Undersecretariat of the Treasury. All other credits are monitored by the CBRT for statistical purposes.
Commercial credits
By residents to nonresidentsThe maturity of commodity credits may not exceed two years for nondurable goods and five years for other goods.
To residents from nonresidentsResidents may obtain freely credits from abroad, provided they use such credits through banks (including participating banks). The maximum maturity of prefinancing credits is 18 months, except in the case of shipbuilding, for which it is 24 months.
Financial credits
By residents to nonresidentsControls apply to credits and loans granted to nonresidents if these assets are to form part of the cover of the technical reserves of an insurance company.
Controls on direct investment
Outward direct investmentEffective December 30, 2006, residents may export cash capital through banks, and in-kind capital within the framework of the provisions of customs legislation, for the purpose of establishing companies, participating in partnerships, and opening branches abroad in order to make investments or to conduct commercial activities. The former authorization requirement for outward direct investment, which limited the transfer of capital in kind or in cash to the equivalent of $5 million, was abolished.
Inward direct investmentControls apply to investment in (1) the mining sector, except through a company to be established in Turkey; (2) exploration and exploitation of petroleum by enterprises controlled or owned by foreign states, unless an authorization is granted; (3) refining, transportation through pipelines, and storage of petroleum, unless an authorization is granted; (4) maritime transport, air transport and ground handling services, radio and television broadcasting, and marina operations, where foreign ownership is limited; (5) education, because foreigners are not allowed to set up schools unless all students are foreigners; (6) banks and other financial institutions where authorization is required; and (7) the accounting sector, where involvement of foreigners is specifically regulated.
Controls on liquidation of direct investmentProceeds may be transferred abroad freely but must be reported to the CBRT.
Controls on real estate transactions
Purchase abroad by residentsControls apply to the acquisition of real estate outside Turkey if these assets are to form part of the cover of the technical reserves of an insurance company.
Purchase locally by nonresidentsForeign individuals may acquire real estate in Turkey based on reciprocity and compliance with legal requirements. Real estate inherited by citizens of a country that does not have a reciprocity agreement with Turkey or real estate located in restricted areas must be liquidated after the transfer by inheritance. Nonresidents may not acquire more than 2.5 hectares, but the Council of Ministers may decide to allow acquisition up to 30 hectares. Foreign juridical persons established in Turkey may acquire real estate to conduct their business and economic activities. Foreign legal persons not residing in Turkey, on the other hand, may acquire property only within the provisions of the Industrial Zones Law, Petroleum Law, or Law on Encouragement of Tourism.
Controls on personal capital transactionsPersonal capital in the form of cash may be freely transferred into and out of the country, in accordance with exchange legislation. Inward and outward personal capital transfers in kind may be effected in accordance with customs and exchange legislation.
References to legal instruments and hyperlinksDecree No. 32 on the Protection of the Value of Turkish Currency; www.hazine.gov.tr/english/bak/exlegislation/decree.doc; Communiqué Serial III, No. 20, on Principles Regarding Registration with the CMB and Sale of Foreign Capital Market Instruments; www.cmb.gov.tr; Article 5 of Decree No. 2006/11472 amending Article 13 of Decree No. 32, published in the Official Gazette dated December 30, 2006, and numbered 26392; Foreign Direct Investment Law No. 4875, dated June 17, 2003.
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutionsEffective November 1, 2006, regulations on banking operations are subject to permission and indirect ownership of shares in banks.
Borrowing abroadYes.
Lending to nonresidents (financial or commercial credits)Resident banks may extend credit in foreign exchange to nonresidents up to the total amount of foreign exchange credit they have obtained and the balances in their foreign exchange deposit accounts. Such credit may also be extended in new Turkish liras.
Lending locally in foreign exchangeResident banks may not extend credit in foreign exchange to residents, except to those who are exporters, investors, Turkish entrepreneurs working abroad, residents who are conducting business related to international tenders held in Turkey, and residents who are conducting business related to defense industry projects that have been approved by the Undersecretariat of the Defense Industry.
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsBanks (including participation banks) must maintain required reserves at the CBRT for deposits and other liabilities. The required reserve ratio for liabilities in domestic currency is 6%; in foreign currencies, 11%. Required reserves for domestic currency are maintained on a two-week-average basis, whereas required reserves for foreign currency must be held in special accounts with the CBRT, but 3 percentage points of the foreign reserve requirement rate may be maintained on a two-week-average basis. The required reserves maintained in domestic currency and foreign exchange are remunerated at interest rates below market rates. In case of noncompliance with the reserve requirement obligations, as a sanction, banks are required to hold non-interest-bearing deposits with the CBRT. The deposits must be twice the deficient amount of the domestic currency required reserves in terms of new Turkish liras, and three times the deficient amount of the foreign exchange required reserves in terms of U.S. dollars.
Investment regulations
Abroad by banksThe opening of branches or representative offices or setting up of undertakings or participating in existing undertakings abroad by banks founded in Turkey is subject to the permission of the Banking Regulation and Supervision Agency (BRSA), on the condition of compliance with the corporate governance and protective provisions set forth in the Banking Law and the principles established by the BRSA in its regulation issued November 1, 2006.
In banks by nonresidentsAny acquisition of shares that results in the acquisition by one person directly or indirectly of shares representing 10% or more of the capital of a bank or any acquisition of shares whereby the capital shares held by one person exceed 10%, 20%, 33%, or 50% of the capital of the bank, and any transfer of shares whereby the capital shares held by one person fall below these limits is subject to prior permission of the BRSA. Transactions that result in reducing the number of shareholders to fewer than five, or in shares being assigned without permission, may not be registered. These rules are valid for the acquisition of voting rights and establishment of usufructuary rights on shares. The assignment and transfer of preferential shares with the right of promoting a member to the board of directors or audit committee or issue of new shares with privilege requires BRSA approval, irrespective of the above limits. In the application of these regulations, no distinction is drawn between residents and nonresidents.
Open foreign exchange position limitsThe BRSA regulates, supervises, and monitors banks’ open foreign exchange positions. All foreign-exchange-indexed assets and liabilities have to be taken into account fully as foreign assets and foreign liabilities. Banks are required to maintain a balance in their foreign exchange assets and liabilities and maintain foreign exchange positions that are in line with their own funds. The absolute value of the weekly arithmetic mean of daily ratios between the net foreign exchange positions and own funds must be a maximum of 20%. If the maximum limit of the ratio is exceeded, banks have to inform the BRSA. The amount of excess in weekly ratios must be eliminated within two weeks. The weekly limit may not be exceeded more than six times a calendar year, even if it is eliminated. The provisions of these regulations are also applied to participation banks.
Provisions specific to institutional investors
Insurance companiesFor insurance companies, limitations on investment instruments apply to residents and nonresidents without discrimination.
Limits (max.) on securities issued by nonresidentsControls apply to the purchase of securities issued by nonresidents if these assets are to form part of the cover of the technical reserves of an insurance company.
Limits (max.) on investment portfolio held abroadControls apply to (1) purchase of or swap operations in instruments and claims issued by or contracted with nonresidents, (2) credits and loans granted to nonresidents, (3) deposits of funds with nonresident financial institutions, and (4) acquisition of real estate localized outside Turkey, if these assets are to form part of the cover of the technical reserves of an insurance company.
Limits (min.) on investment portfolio held locallyThe amount of securities of one company held by insurance companies may not exceed 10% of their own equities, and the amount of securities of one capital group may not exceed 20% of their own equities. Insurance companies have to invest their mathematical reserves in the following assets: Turkish currency, foreign currencies traded by the CBRT, demand and time deposits in Turkish currency, deposit accounts in foreign currency, loan facilities on investment fund participation certificates, profit/loss sharing certificates, treasury bonds, state bonds, foreign-currency-indexed bonds, profit-sharing certificates, private sector bonds, bank and financing bonds, asset-based securities, stocks, real estate and certificates of real estate repurchase, long-term loan facilities made available to natural persons and secured by mortgages, and other money and capital market instruments determined by the Undersecretariat of Treasury.



Insurance companies must invest their deposits in the following assets:



(1) Turkish liras or foreign exchange that is traded by the CBRT, or deposits opened in such currencies; (2) government bonds, treasury bills, and other securities issued by the state, or temporary receipts drawn up by the CBRT for such assets, provided they are drawn up in the name of the insurance company concerned; (3) share certificates of companies, at least 51% of capital owned by state economic establishments or public economic institutions; (4) share certificates and debentures traded on the stock exchange, provided they do not exceed in general 30% of the securities or that the share of those belonging to one company does not exceed 10% of the total securities or that the share of those belonging to one capital group does not exceed 20% of the total securities; (5) participation certificates in investment funds, provided those belonging to one founder do not exceed 10% of the total securities; and (6) immovable properties in Turkey, provided their share in the security does not exceed 50%.
Pension fundsFor pension companies, limitations on investment instruments apply to residents and nonresidents without discrimination.
Limits (max.) on securities issued by nonresidentsFor pension companies, a maximum of 15% of investable pension contributions may be held in funds that invest at least 80% of their portfolios in foreign money market and foreign capital market instruments.
Limits (max.) on investment portfolio held abroadFor pension companies, a maximum of 15% of investable pension contributions may be held in funds that invest at least 80% of their portfolios in foreign money market and foreign capital market instruments.
Limits (min.) on investment portfolio held locallyFor pension companies, a minimum of 30% of pension contributions must be held in funds that invest at least 80% of their portfolios in government bonds.
References to legal instruments and hyperlinksMain Laws: Turkish Commercial Law, Law No. 6762; Insurance Supervision Law, Law No. 7397; Private Pension Law, Law No. 4632; Agricultural Insurance Law, Law No. 5363; Decree-Law on Compulsory Earthquake Insurance; Decree-Law No. 587.



Main Regulations: Regulation on the Establishment of Insurance and Reinsurance Companies in Turkey and Their Principles of Operation; Regulation on the Foundation and Operation Principles of Private Pension Companies; Regulation on Life Insurance; Regulation on Independent Auditing Principles of Insurance; Regulation on Capital Adequacy of Insurance, Reinsurance, and Private Pension Companies; Regulation on the Insurance Accounting System; Regulation on External Auditing of Insurance Companies; Regulation on Actuarial Activities; Regulation on Private Pension Intermediaries; Regulation on the Private Pension System; Regulation on Bases Concerning Establishment and Activities of Pensions; Regulation on Operations of Banks Subject to Permission and Indirect Ownership of Shares in Banks.



Mutual Funds: Regulation on Road Transportation; Regulation on Third Party Motor Liability Guarantee Fund; Regulation on Insurance Agents; Regulation on Insurance Experts; Regulation on Insurance and Reinsurance Brokers; Regulation on Third Party Motor Liability Insurance Information Center; Regulation on the Operation Principles of the Turkish Motor Vehicle Bureau; Regulation on the Insurance Supervisory Board; Regulation on the Methods and Principles Governing the Activities of the Turkish Insurance and Reinsurance Companies’ Association.



Key Circulars (Communiqués): Communiqué Concerning Uniform Accountancy and Explanation; Communiqué Concerning Private Pension Intermediaries; www.sigortacilik.gov.tr and www.bireyselemeklilik.gov.tr; websites contain all the above-listed and other related laws, regulations, and communiqués in Turkish; www.cmb.gov.tr; Decree No. 32 on the Protection of the Value of Turkish Currency; www.hazine.gov.tr/english/bak/exlegislation/decree.doc; Banking Law; www.tbb.org.tr/english/5411.doc.
Changes during 2006
Exchange arrangementJanuary 1. The new Turkish lira became the sole legal tender.



May 16. The daily foreign exchange purchase auctions were suspended.



November 10. The CBRT resumed its daily foreign exchange auction program, with a daily fixed purchase amount of $15 million.
Capital transactions
Controls on direct investmentDecember 30. Residents were allowed to export cash capital through banks, and in-kind capital within the framework of the provisions of customs legislation, for the purpose of establishing companies, participating in partnerships, and opening branches abroad in order to make investments or to conduct commercial activities. The former authorization requirement for outward direct investment, which limited the transfer of capital in kind or in cash to the equivalent of $5 million was abolished.
Provisions specific to the financial sector
Provisions specific to commercial banks and other credit institutionsNovember 1. The Regulations on Operations of Banks were made subject to Permission and Indirect Ownership of Shares in Banks was issued by the BRSA establishing the principles of opening branches or representative offices and setting up undertakings or participating in existing undertakings abroad by banks. The provisions introduced by the regulation do not differ from those applied previously.
Changes during 2007
Imports and import paymentsJanuary 1. Turkey issued import licenses for the allocation of tariff quotas stemming from preferential trade agreements and autonomous tariff quotas for agricultural products.



January 1. Turkey implemented quotas for certain Chinese-origin textiles and apparel products (44 categories in total) in accordance with Paragraph 242 of the Report of the Working Party on the accession of China to the WTO.



January 1. The following simple average tariff rates for imports were established: (1) industrial products, 4.2% and zero for imports from other countries, and from the EU and EFTA, respectively; and (2) agricultural products, 59.3% and 58.2% for imports from other countries, and from the EU and EFTA, respectively.
Payments for invisible transactions and current transfersFebruary 9. Credit cards were allowed to be used on a revolving basis up to the equivalent of $50,000.

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