Amendments to the Communiqué on the Covered Bonds

The Communiqué (III-59.1.ç) on the Amendment to the Communiqué on the the Covered Bonds (III-59.1) (“Communiqué”) entered into force through publication in the Official Gazette dated 14.05.2020 and numbered 31127.

Through the Communiqué, certain amendments were introduced to the Communiqué on the Covered Bonds within the framework of the measures included in the Eleventh Development Plan (2019-2023) and the 2020 Presidential Annual Program.

With the introduction of the amendments, inter alia, the provision regarding the nominal value of the part of the covered bonds in circulation at any time issued by Mortgage Finance Institutions (“MFI”) shall not exceed five times of the amount of equity of the MFI provided in the annual financial statement for the last accounting period prepared according to the regulations of the Capital Markets Board (“Board”) and subject to independent audit,  has been abolished.

Among other amendments to ensure the integrity of the meaning, the practice regarding not charging Board fee from the issuances by implicating the rates in the first paragraph of Article 28 of the Communiqué on the Covered Bonds as zero per thousand, has been extended until 31.12.2021.

Please find the Turkish version of the Communiqué here.