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Turkey Said to Plan Hedging Rule to Limit Corporate FX Risk 

June 19, 2017

Asli Kandemir, Onur Ant, & Constantine Courcoulas, Bloomberg Markets

"Turkey is planning new measures to tackle the potential risk from the $300 billion in foreign-currency debt held by private companies, according to two people familiar with the discussions.

Plans include requiring non-financial companies with more than $15 million in foreign-currency debt to hedge their risk, said the people, who asked not to be named because the information wasn’t public. Companies with smaller holdings will also face limits on how much foreign-exchange credit they can receive from banks, they said. The measures were discussed June 13 at a Financial Stability Board meeting led by Deputy Prime Minister Mehmet Simsek."

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