Decree No. 32 has been amended by the Council of Ministers Decree (published in the Official Gazette dated November 17, 2011 and numbered 28115) whereby the definition of “precious metals” has been amended to mean gold, silver, platinum and palladium in any kind and form. Additionally, definitions of processed, unprocessed and non-standardly processed gold, silver, platinum and palladium have also been amended.

Pursuant to Article 7/a of Decree No.32, precious metals can be imported and exported in and out of Turkey freely in accordance with Foreign Trade Regulations. However, the import and export of precious metals which are not processed in accordance with the standards shall not be subject to such regulations and regulations of Central Bank of Republic of Turkey and other regulations pertaining to such metals shall be applicable. Additionally, the export of such metals shall only be performed by the intermediary institutions listed in the Precious Metals Exchange.

The Communiqué (published in the Official Gazette dated November 16, 2005 and numbered 25995) has been amended by the: (i) Communiqué I (published in the Official Gazette dated October 6, 2011 and numbered 28076); (ii) Communiqué II (published in the Official Gazette dated October 7, 2011 and numbered 28077); (iii) Communiqué III (published in the Official Gazette dated October 28, 2011 and numbered 28098) (iv) Communiqué IV (published in the Official Gazette dated November 2, 2011 and numbered 28103); and (v) Communiqué V (published in the Official Gazette dated November 4, 2011 and numbered 28105) (collectively the “Communiqués”)

whereby the legal reserve ratio regarding: (i) FX demand deposits, future deposits and FX private current accounts, deposits/participation accounts up to one month, up to three months, up to six months and up to one year maturities has been decreased to 11%; and (ii) FX deposits/participation accounts with a one year or longer maturity and cumulative FX deposits/participation accounts has been decreased to 9%.

The legal reserve ratio for other foreign currency liabilities of banks regarding (i) future transactions up to a one year maturity has been set at 11%, (ii) future transactions up to three years maturity has been set at 9% and (iii) future transactions with a maturity of more than three years has been set at 6%.

Additionally, the legal reserve ratio for accounts in Turkish lira has been set at (i) 11% for demand and future deposits and private current accounts and future/participation accounts with maturities of up to one month and three months and (ii) 8% for future/participation accounts with a maturity up to six months.

Furthermore, banks are required to set aside their mandatory reserves in their accounts kept by the Central Bank of the Republic of Turkey in Turkish lira for their Turkish lira liabilities and in US dollars and/or in Euro for their liabilities in foreign currency. However, pursuant to Article 6 of the Communiqué, banks may set aside 40% of their Turkish lira liabilities in foreign currency and 10% of their Turkish lira liabilities in gold.

The Regulation on the Authorisation and Activities of Institutions to perform External Audit in Banks (published in the Official Gazette dated November 11, 2006 and numbered 26333) (the “Regulation on External Auditing”) lays down the principles and procedures governing the authorisation, activities and revoking powers of the external audit institutions that conduct external audits in banks. Such regulation has been amended (published in the Official Gazette dated July 26, 2011 and numbered 27270) whereby certain articles in relation to the (i) principle of independence and cases eliminating independence, (ii) revocation of power, (iii) effectiveness of external audit, (iv) obligations of the authorised audit institution, and (v) submission of external audit reports have been amended.

The Regulation on Principles and Procedures regarding Auditing Principles (published in the Official Gazette dated January 13, 2010 and numbered 27461) (the “Regulation”) envisages the terms and conditions of the auditing principles to be abided by independent auditing institutions. Article 12 of the Regulation has been amended (published in the Official Gazette dated July 26, 2011 and numbered 27270) whereby the authority of Banking Regulation and Supervision Agency to temporarily revoke the authority of the independent auditing institution in case of the repetitive failure to abide by the Regulation has been abolished.

The Communiqué on Legal Reserves (published in the Official Gazette dated November 16, 2005 and numbered 25995) (the “Communiqué”) has been amended by the Communiqué enacted by the Central Bank of the Republic of Turkey (published in the Official Gazette dated September 12, 2011 and numbered 28052) (“Amendment to the Communiqué”) which abolished the gold reserve accounts among the deductible items enumerated under Article 4. Additionally, the legal reserve ratio regarding (i) FX demand deposits, notice deposits and FX private current accounts, deposits/participation accounts up to one month, three months, six months and one year maturities has been decreased to 11% from 11.5% and (ii) FX deposits/participation accounts with one year and longer maturity and cumulative FX deposits/participation account has been decreased to 9% from 9.5%. Banks are required to set aside their mandatory reserves in their accounts kept by the Central Bank of the Republic of Turkey in Turkish lira for their Turkish lira liabilities and in USD and/or in Euro for their liabilities in foreign currency. However, pursuant to Article 6 of the Communiqué, banks may set aside 10% of their Turkish lira liabilities in a foreign currency. Such ratio has been increased to 20% by the Amendment to the Communiqué.

The abovementioned amendments will be effective as of the calculation period dated 30 September 2011 and the legal reserves calculated using the new ratios will be maintained starting from 14 October 2011.

The Council of Ministers Decree regarding Procedures on Treasury Support to be provided to Credit Insurance Institutions (published in the Official Gazette dated July 15, 2009 and numbered 27289) (the “Decree”) regulates the procedures of the Undersecretariat of the Treasury support to be provided to Credit Insurance Institutions which provide surety to the credits and facilities of small- and medium-sized enterprises and Kredi Garanti Fonu A.S. The Amendment to the Decree (published in the Official Gazette dated July 3, 2011 and numbered 27983) (“Amendment”) introduces a change with respect to the maturity terms of the available credits. Accordingly, the sub-provision (b/2) of clause (1) of Article 4 of the Decree in relation to the conditions of the credits to benefit from treasury support has been amended and restated as “The minimum maturity term of the credits is six months and the maximum term of maturity of the credits is eight years; of which the term without principle payment shall not exceed two years. The maximum maturity term of working capital credits made available in the maritime sector is three years of which the term without principle payment shall not exceed one year; and the maximum maturity term of investment credits made available in the maritime sector is eight years of which the term without principle payment shall not exceed three years. Interest accrued in connection with the term without principle payment shall be collected at the end of one year arrears.” Additionally, the Amendment also implements changes to the conditions of the support to be provided. Accordingly, the application period for treasury support has been increased to four years from two years.