Client Alert – Decision regarding Approval of the Presidential Annual Program

Client Alert: Digital Transformation Office
November 6, 2019
Client Alert Turkey
November 14, 2019

Client Alert – Decision regarding Approval of the Presidential Annual Program

Decision (“Decision”) numbered 1733 regarding the Approval of the Presidential Annual Program for the year 2020 prepared by the Ministry of Treasury and Finance and the Department of Strategy and Budget has been published in the Official Gazette dated October 4, 2019 and numbered 30938(duplicate).

 

  • Accordingly, in order to achieve a stable and strong economic outcome within the scope of the targets and policies of 2020:

 

2.1.5. Policy measures that have been specified under the heading Financial Markets are as below:

 

  • Financial Institution’s regulatory and supervisory framework shall be strengthened, an effective competitive environment shall be provided, transaction costs shall be decreased and access to reliable information shall be facilitated.

 

 

Policy/Measure Relevant Institutions Activities and Projects to be Carried Out
Measure 248.7 Regulations will be made regarding the decrease of the usage of physical documents and wet signatures in transactions realized with customers. Ministry of Treasury and Finance, Ministry of Justice, Ministry of Commerce, BRSA, MASAK 1.       An amendment regarding the Law on Financial Leasing, Factoring and Financing Companies numbered 6361 shall be drafted in order to eliminate the written form requirement sought in factoring and financing contracts and in order to enable the execution of contracts through remote communication tools without the requirement of wet signature.

 

2.       An amendment regarding the Bank Cards and Credit Cards Law numbered 5464 shall be drafted in order to eliminate the written form requirement in the agreements regulating the relationships between card issuers and card holders and to enable the execution of these agreements through means of remote communication without the requirement of wet signature.

 

 

 

  • Inter-country cooperation shall be established and the relevant studies shall continue, in order to develop alternative money and payment systems which shall be acceptable within the international trade system.

 

Policy/Measure Relevant Institutions Activities and Projects to be Carried Out
Measure 249.5 Blockchain based digital central bank currency will be mobilized TCMB, TUBITAK Instant payment system’s design and development phases will be completed, test works will be initiated.

 

  • The creation of a secure financial technology (fintech) ecosystem shall be supported through international good practices providing equal opportunities to firms.

 

Policy/Measure Relevant Institutions Activities and Projects to be Carried Out
Measure 250.1 A road map for the development of the fintech ecosystem in our country shall be determined and the coordination regarding the implementation of said road map shall be provided by a single public institution. Finance Department of the Presidency A road map for the development of the fintech ecosystem in Turkey shall be determined.
Measure 250.2 Sandboxes and Industrial Test Fields shall be established. Finance Department of the Presidency Legislative amendment studies  relevant to  Sandboxes, Industrial Test Fields and a fintech  ecosystem shall be carried out.
Measure 250.3 – “Union of payment and digital currency institutions” shall be established. TCMB, Ministry of Treasury and Finance, BRSA In the context of establishing “union of payment and digital currency institutions” the legislative amendment studies regarding the Code numbered 6493 shall be carried out.
Measure 250.4 Istanbul Finance and Technology Base shall be established. Finance Department of the Presidency A Finance Technopark shall be established within the Istanbul Finance Center.
Measure 250.5 In order to strengthen the open banking legal infrastructure, legislation shall be harmonized with the Payment Systems Directive 2. TCMB, Ministry of Treasury and Finance, BRSA 1.       Payment systems shall be supervised by TCMB and necessary legislative amendments shall be drafted in order to increase effectiveness.

2.       Regulation on Bank’s Information Systems and Electronic Banking Services shall be put into force.

3.       A study shall be carried out regarding the necessary legislation amendments together with the institutions with which cooperation shall be necessary in relation to the mentioned directive.

 

  • Accordingly, in order to achieve competitive production and productivity targets within the scope of the targets and policies of 2020:

 

2.2.1. Policy measures that have been specified under the heading Industrial Policies are as below:

 

  • Venture capital system will be developed in order to support investments focused on technology and innovation.

 

Policy/Measure Relevant Institutions Activities and Projects to be Carried Out
Tedbir 302.1 – Venture capital fund sources (fund of funds) shall be established under the Ministry of Industry and Technology. Ministry of Industry and Technology 1.       Needs analysis shall be carried out taking into consideration the current practices within the field of venture capitals.

2.       A model suggestion shall be developed.

3.       Studies shall be carried out regarding the enhancement of the legislation and the organizational structure.

Tedbir 302.2 –  Provided that the regulations specified under the capital markets legislation regarding capital ventures to be reserved, the coordination of the venture capital system shall be incorporated under the Ministry of Industry and Technology.

 

Ministry of Industry and Technology, Ministry of Treasury and Finance, CMB 1.       Legislation amendments shall be made, and institutional and administrative regulations shall be determined.

 

Measure 302.3 Venture capital funds for technology-based initiatives shall be strengthened. Ministry of Industry and Technology, Ministry of Treasury and Finance, TUBITAK 1.       Following the completion of the protocol procedures, fund participation agreements shall be executed between the Ministry of Finance and funds, and project support agreements shall be executed between University Institutions which shall participate in said funds and TUBİTAK.

2.       Within the scope of the Tech-InvesTR program, the agreements executed between TUBITAK and University Institutions shall be finalized.

3.       Negotiations shall be held with national and international institutions such as EIF, EBRD, IFC (World Bank), etc., in order to provide new participants to the funds.

4.       Following the evaluation of Tech-InvesTR 2018 process, studies relating to the Tech-InvesTR 2020 call shall be carried out.

 

 

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