Amendments to the Regulation on the Accounting Practices and Financial Statements of Financial Leasing, Factoring and Financing Companies

The Banking Regulation and Supervision Agency of the Republic of Turkey (the “BRSA”) has effected amendments to the Regulation on the Accounting Practices and Financial Statements of Financial Leasing, Factoring and Financing Companies (the “Regulation”). The amending regulation has been published in the Official Gazette dated 02 May 2018 and numbered 30409 (the “Amending Regulation”).

The Amending Regulation removes article 6 of the Regulation which requires loss reserve allocations to be made with respect to the entire exposure to a specific debtor, even if they arise under separate and unrelated transactions.

The Amending Regulation also provides that loss reserve allocations and the application of the impairment procedures under the Regulation with respect to claims not exceeding TRY100 is discretionary.

Finally, the Amending Regulation provides that provisions for credit loss in accordance with TFRS 9 will be taken into account for the purposes of the Regulation.

The Amending Regulation will take effect as from 30 September 2018.

Authors

Yeşim Bezen

Zeynep Özkan

Sergey Kolomoyets

Yasemin Keskin