Communiqué Amending the Communiqué on Procedures and Principles Regarding the Implementation of Article 376 of the Turkish Commercial Code No. 6102 ("Amendment Communiqué") was published in the Official Gazette dated 31 October 2023 and numbered 32355.

The Amendment Communiqué entered into force on the date of publication.

Under the Amendment Communiqué, the period stipulated in the Provisional Article 1 of the Communiqué on Procedures and Principles Regarding the Implementation of Article 376 of the Turkish Commercial Code No. 6102 has been extended from 1 January 2024 to 1 January 2025.

Thus, in the calculations regarding capital loss or insolvency pursuant to the Article 376 of the Turkish Commercial Code, the following items may not be taken into account until 1 January 2025:

• The sum of all the foreign exchange losses arising from foreign currency liabilities that have not yet been performed,
• Half of the sum of expenses from leases, depreciation and personnel expenses accrued in 2020 and 2021.

Accordingly, the implementation of the exceptional arrangements introduced against the increase in exchange rate volatility after 2018 and the negative effects of operational expenses in the 2020-2021 pandemic period on the balance sheet, is extended for a period of one year.

With the extension of the exemptions for the calculations regarding the determination of whether the equity of capital companies has fallen below the thresholds stipulated under the Article 376 of the Turkish Commercial Code, it is envisaged that protection against fluctuations in exchange rates, albeit limited, will continue to be provided.