New Developments
The resource utilization support fund (RUSF) rate has been set to zero for the loans provided by the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) with Presidential Decree No. 4091 ("Decree"), which was published in the Official Gazette dated 21 June 2021.
What Does the Decree Mean?
The Decree determined the RUSF rate as 0% for the loans provided by the EBRD and the IFC to Turkish residents that are not a bank or a financing company.
Before the Decree, the RUSF rate used to apply as 3%, 1%, 0.5% and 0%, depending on the maturity period, to the loans obtained from abroad by Turkish residents that are not a bank or a financing company (regardless of whether the loan was provided by the EBRD or the IFC). The RUSF rate of 0% came into force on the publication of the Decree.
Conclusion
It is understood that the decrease of the RUSF rate to 0% for the loans provided by the EBRD and the IFC to Turkish residents, except banks and financing companies, is aimed at decreasing the financing costs on the financing of feasible investments by those institutions.
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