# EDGAR Filing Document

**Accession Number:** 0000869687
**File Stem:** 0001193125-23-069918
**Filing Date:** 2023-3
**Character Count:** 229142
**Document Hash:** 45b42a999c38c013bc6c1f50415d9cde
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-069918.hdr.sgml**: 20230314

**ACCESSION NUMBER**: 0001193125-23-069918

**CONFORMED SUBMISSION TYPE**: 18-K/A

**PUBLIC DOCUMENT COUNT**: 8

**CONFORMED PERIOD OF REPORT**: 20211231

**FILED AS OF DATE**: 20230314

**DATE AS OF CHANGE**: 20230314

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** REPUBLIC OF TURKEY
- **CENTRAL INDEX KEY:** 0000869687
- **STANDARD INDUSTRIAL CLASSIFICATION:** FOREIGN GOVERNMENTS [8888]
- **IRS NUMBER:** 000000000

**FILING VALUES:**
- **FORM TYPE:** 18-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 033-37817
- **FILM NUMBER:** 23729856

**BUSINESS ADDRESS:**
- **STREET 1:** NO: 36 KAT: 13, ISMET INONU BULVARI
- **STREET 2:** 06510 EMEK
- **CITY:** ANKARA
- **STATE:** W8
- **ZIP:** 00000
- **BUSINESS PHONE:** 202-538-1678

**MAIL ADDRESS:**
- **STREET 1:** TURKISH EMBASSY, OFF. ECONOMIC COUNSELOR
- **STREET 2:** 2525 MASSACHUSETTS AVENUE, N.W.
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20008

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**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, D.C. 20549** 

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**FORM 18-K/A** 

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**For Foreign Governments and Political Subdivisions Thereof** 

**AMENDMENT NO. 4** 

**TO** 

**ANNUAL REPORT** 

**OF** 

## THE REPUBLIC OF TURKEY
**(Name of Registrant)** 

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**Date of end of last fiscal year: December 31, 2021** 

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**SECURITIES REGISTERED\*** 

**(As of the close of the fiscal year)** 

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| | | |
|:---|:---|:---|
| **Title of Issue** | **Amounts as to**<br> **which registration**<br> **is effective** | **Names of**<br> **exchanges on**<br> **which registered** |
|  N/A | N/A | N/A |

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**Names and address of persons authorized to receive notices** 

**and communications from the Securities and Exchange Commission** 

**EMBASSY OF THE REPUBLIC OF TÜRKİYE** 

**OFFICE OF THE COUNSELOR FOR TREASURY AND FINANCIAL AFFAIRS** 

**2525 Massachusetts Avenue, N.W. WASHINGTON D.C. 20008 / U.S.A.** 

**Phone: (202) 612-6790 Fax: (202) 238-0627** 

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***Copies to:***

**CHRISTOPHER P. PETERSON, ESQ.** 

**Arnold & Porter Kaye Scholer LLP** 

**250 West 55<sup>th</sup> Street** 

**New York, NY 10019** 

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\* The Registrant is filing this annual report on a voluntary basis.

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**THE REPUBLIC OF TURKEY** 

The purpose of this Amendment No. 4 is to file with the Securities and Exchange Commission (i) the recent developments in the Republic as of March 8, 2023 which is included as Exhibit D-4 hereto and which updates and amends the Current Description of the Republic previously filed as Exhibit D, (ii) the legal opinions included as Exhibits N and O hereof in accordance with the Registrant's undertaking in the Registration Statement to furnish copies of such legal opinions as may be required (including the opinion of the Legal Advisor to the Registrant) in connection with any issue of securities under the Registration Statement and (iii) the underwriting agreement which is included as Exhibit P hereto.

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**EXHIBIT INDEX** 

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| | |
|:---|:---|
| **Exhibit**<br> **Number** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;A |  |
| &nbsp;&nbsp;&nbsp;&nbsp;B |  |
| \* C | Copy of the 2022 Annual Budget of the Republic (in Turkish)(P) |
| \* D | [Current Description of the Republic as of September 23, 2022](http://www.sec.gov/Archives/edgar/data/869687/000119312520247247/d30195dex99d.htm) |
| \* D-1 | [Recent Developments in the Republic as of November 7, 2022](http://www.sec.gov/Archives/edgar/data/869687/000119312522285661/d343468dex99d1.htm) |
| \* D-2 | [Recent Developments in the Republic as of December 1, 2022](http://www.sec.gov/Archives/edgar/data/869687/000119312522300770/d432849dex99d2.htm) |
| \* D-3 | [Recent Developments in the Republic as of January 11, 2023](http://www.sec.gov/Archives/edgar/data/869687/000119312523010790/d413365dex99d3.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;D-4 | [Recent Developments in the Republic as of March 8, 2023](d484641dex99d4.htm) |
| \* E | [Opinion of the First Legal Advisor, Ministry of Treasury and Finance of the Republic of Türkiye dated November 15, 2022](http://www.sec.gov/Archives/edgar/data/869687/000119312522285661/d343468dex99e.htm) |
| \* F | [Opinion of Arnold & Porter Kaye Scholer LLP dated November 15, 2022](http://www.sec.gov/Archives/edgar/data/869687/000119312522285661/d343468dex99f.htm) |
| \* G | [Underwriting Agreement dated November 7, 2022](http://www.sec.gov/Archives/edgar/data/869687/000119312522285661/d343468dex99g.htm) |
| \* H | [Opinion of the First Legal Advisor, Ministry of Treasury and Finance of the Republic of Türkiye dated December 8, 2022](http://www.sec.gov/Archives/edgar/data/869687/000119312522300770/d432849dex99h.htm) |
| \* I | [Opinion of Arnold & Porter Kaye Scholer LLP dated December 8, 2022](http://www.sec.gov/Archives/edgar/data/869687/000119312522300770/d432849dex99i.htm) |
| \* J | [Underwriting Agreement dated December 1, 2022](http://www.sec.gov/Archives/edgar/data/869687/000119312522300770/d432849dex99j.htm) |
| \* K | [Opinion of the First Legal Advisor, Ministry of Treasury and Finance of the Republic of Türkiye dated January 19, 2023](http://www.sec.gov/Archives/edgar/data/869687/000119312523010790/d413365dex99k.htm) |
| \* L | [Opinion of Arnold & Porter Kaye Scholer LLP dated January 19, 2023](http://www.sec.gov/Archives/edgar/data/869687/000119312523010790/d413365dex99l.htm) |
| \* M | [Underwriting Agreement dated January 11, 2023](http://www.sec.gov/Archives/edgar/data/869687/000119312523010790/d413365dex99m.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;N | [Opinion of the First Legal Advisor, Ministry of Treasury and Finance of the Republic of Türkiye dated March 14, 2023](d484641dex99n.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;O | [Opinion of Arnold & Porter Kaye Scholer LLP dated March 14, 2023](d484641dex99o.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;P | [Underwriting Agreement dated March 8, 2023](d484641dex99p.htm) |

---

\* Previously filed.

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**SIGNATURE** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Amendment to be signed on its behalf by the undersigned, thereunto duly authorized, in Ankara, Türkiye on the 14th day of March, 2023.

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| | |
|:---|:---|
| REPUBLIC OF TURKEY | REPUBLIC OF TURKEY |
| By: | /s/ Yiğit Korkmaz YAŞAR |
|  | Yiğit Korkmaz YAŞAR |
|  | Acting Director General,<br> Ministry of Treasury and Finance |

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## Ex-99.D-4

**Exhibit D-4** 

**RECENT DEVELOPMENTS AND SUMMARY** 

*The information included in this section supplements the information about the Republic contained in the Republic's Annual Report for 2021 on Form 18-K filed with the SEC on September 23, 2022, as amended from time to time. To the extent the information in this section is inconsistent with the information contained in the Annual Report for 2021, as amended from time to time, the information in this section supersedes and replaces such information. Capitalized terms not defined in this section have the meanings ascribed to them in the Annual Report for 2021.* 

**GENERAL** 

In 2022, the Republic's GDP increased by 5.6% compared to the previous year. The Republic's GDP increased by 7.6% in the first quarter of 2022 compared with the first quarter of 2021. The Republic's GDP increased by 7.8% in the second quarter of 2022 compared with the second quarter of 2021. The Republic's GDP increased by 4% in the third quarter of 2022 compared with the third quarter of 2021. The Republic's GDP increased by 3.5% in the fourth quarter of 2022 compared with the fourth quarter of 2021. See "*— Economic Developments*" for more information.

On August 18, 2022, Japan Credit Rating maintained Türkiye's unsolicited long-term issuer and senior unsecured debt ratings as "BB", but revised the outlook to "negative" from "stable". On September 30, 2022, Standard & Poor's lowered its unsolicited long-term foreign and local currency sovereign credit ratings on Türkiye to 'B' from 'B+'. At the same time Standard & Poor's affirmed the unsolicited foreign and local currency short-term ratings at 'B'. The outlook was revised to stable from negative. On July 8, 2022, Fitch lowered Türkiye's credit rating to "B" from "B+" and maintained its outlook as "negative". On November 18, 2022, Fitch affirmed Türkiye's credit rating at B and its outlook as negative. On August 12, 2022, Moody's downgraded Türkiye's long-term foreign- and domestic-currency issuer and the foreign-currency senior unsecured ratings to B3 from B2 and changed the outlook to "stable" from "negative". On November 25, 2022, the announced date for its second review of credit rating action in 2022 with respect to Türkiye, Moody's did not update Türkiye's credit ratings.

The Turkish parliament ratified the Paris Agreement on October 6, 2021 and the Agreement entered into force on November 10, 2021. Türkiye, which had previously committed to reducing its emissions by 21% by 2030 (relative to the expected business as usual scenario in 2030), adopted the target of achieving net zero emissions by 2053.

On November 13, 2022, an explosion in a crowded district of Istanbul resulted in the deaths of six people and in the wounding of 81 others. The Republic labelled the incident as a terrorist attack and stated that Kurdish separatist groups were responsible. In response, on November 20, 2022, Turkish armed forces launched Operation Claw-Sword, which involved airstrikes in northern Iraq and Syria.

On February 6, 2023, magnitude 7.7 and 7.6 earthquakes occurred in Kahramanmaraş province. They affected more than 13 million people across 11 provinces, including Adana, Adıyaman, Diyarbakır, Gaziantep, Hatay, Kilis, Malatya, Osmaniye, Şanlıurfa, and Elazığ. Several countries in the region, including Syria and Lebanon, also felt the strong tremors that struck Türkiye in the space of less than 10 hours. On February 20, 2023, an earthquake with a magnitude of 6.4 occurred at 8:04 p.m. local time in Defne district of Hatay, which was followed by 90 aftershocks, the largest of which was magnitude 5.8. The Disaster and Emergency Management Presidency stated on February 21, 2023 that 6 people were killed and 294 people were injured. The Disaster and Emergency Management Presidency stated that 45,089 people had been killed and over 108,000 people injured by these earthquakes as of March 1, 2023. ****On February 7, 2023, Turkish President Recep Tayyip Erdoğan announced that the Ministry of Treasury and Finance initially earmarked TL 100 billion in quake-relief spending.

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***COVID-19***

**General COVID-19 Measures Taken by the Ministry of Health** 

As of May 31, 2022, a total of 163,204,823 tests have been carried out across the country. As of March 7, 2023, COVID-19 PCR tests are carried out in 528 authorized diagnostic laboratories across the country and at certain airports, including Istanbul Airport and Istanbul – Sabiha Gökçen International Airport among others, and certain border gates in the country. From the outbreak of the pandemic through November 27, 2022, there have been slightly over 17 million infections and 101,492 COVID-19-related deaths in Türkiye.

Türkiye's vaccination program comprises internationally and domestically produced vaccines, including the Sinovac vaccine produced in China; the Pfizer/BioNTech vaccine; the Sputnik V vaccine produced in Russia and, under license, in Türkiye; and the Turkovac vaccine, produced in Türkiye. As of March 7, 2023, 57,954,504 people across the country have received the first dose, 53,190,704 of whom received the second dose, and 28,234,037 of whom received the third dose. As of March 3, 2023, 85.69% of the adult population (over 18) had received at least two doses of the vaccine.

**POLITICAL CONDITIONS** 

In June 2021, the chief public prosecutor of the Supreme Court of Appeal filed again an indictment seeking dissolution of the opposition party, HDP, which has since been the subject of various proceedings. Most recently, after the Constitutional Court handed the chief public prosecutor's opinion to HDP on January 20, 2022, HDP demanded an additional four months to prepare its defence. On February 16, 2022, the Constitutional Court decided to grant HDP an additional 60 days for its defence. On April 19, 2022, HDP provided its defence to the Constitutional Court over the ongoing case. On September 12, 2022, the Constitutional Court accepted new evidence presented to the Court by the General Prosecution Office of the Supreme Court of Appeal. On September 20, 2022, the Constitutional Court decided to grant HDP an additional 30 days for its defence in response to HDP's demand for additional time to prepare its defence. On November 25, 2022, HDP provided its additional defence to the Constitutional Court. On January 5, 2023, the Constitutional Court ruled to freeze state financing to HDP as a temporary measure on the grounds that money from HDP was transferred to a terrorist organization, upon an indictment by the chief public prosecutor of the Supreme Court of Appeal. On January 26, 2023, the Constitutional Court declined HDP's request to delay judicial proceedings on the case until after presidential and parliamentary elections of 2023

Presidential and parliamentary elections are to be held every five-years on the same date. The next elections are expected to occur in June 2023. President Recep Tayyip Erdoğan has indicated that snap elections could potentially be held on May 14 2023. On March 6, 2023, a coalition of six opposition parties announced the selection of Kemal Kılıçdaroğlu, the leader of the Republican People's party (CHP), as its candidate.

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The following table sets forth the composition of the Grand National Assembly of Türkiye by total number of seats as of March 3, 2023:

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| | |
|:---|:---|
|  | **Number<br>of Seats** |
|  Justice and Development Party (AKP) | 285 |
|  Republican People's Party (CHP) | 134 |
|  Peoples' Democratic Party (HDP) | 56 |
|  Nationalist Action Party (MHP) | 48 |
|  İYİ Party | 37 |
|  Homeland Party | 2 |
|  Turkish Workers Party | 4 |
|  Grand Unity Party | 1 |
|  Democracy and Progress Party | 1 |
|  Democratic Party | 2 |
|  Victory Party | 1 |
|  Democratic Regions Party | 1 |
|  Felicity Party | 1 |
|  Novelty Party | 1 |
|  Independent | 3 |
|  **Total** | **577** |

---

Source: The Grand National Assembly of Türkiye

**FOREIGN POLICY AND INTERNATIONAL RELATIONS** 

***The EU***

*European Commission's 2022 Report* 

On October 12, 2022, the European Commission published its 2022 country report on Türkiye (the "2022 EC Report"). While the 2022 EC Report indicated Türkiye's limited progress and backsliding on a number of issues, it nevertheless reaffirmed that Türkiye remains a key partner of the EU. The 2022 EC Report noted once again that Türkiye continued to make significant efforts to host and meet the needs of one of the largest refugee communities in the world. The 2022 EC Report highlighted that the internal market cluster is key to the good functioning of the EU-Türkiye Customs Union and to integrating Türkiye into the EU's single market, and said that Türkiye has achieved a good level of preparation for the free movement of goods. The 2022 EC Report stated that the situation in the south-east remained worrisome. In the 2022 EC Report, the European Council also reaffirmed its readiness to engage with Türkiye in a phased, proportionate and reversible manner in a number of areas of common interest, subject to Türkiye meeting the established conditions set out in previous European Council conclusions, and stated that the de-escalation in the Eastern Mediterranean is sustained.

On March 1, 2023, Janez Lenarčič, European Commissioner for Crisis Management, attended a session of the European Parliament Committee on Development in Brussels on the humanitarian situation after earthquakes that hit Türkiye and Syria and stated that the solidarity the EU showed after such earthquakes struck Türkiye could open a new page in EU-Türkiye relations.

***United States***

On January 4, 2022, the United States Court of Appeals for the Second Circuit put the federal government's prosecution of Türkiye Halk Bankası A.Ş. on hold while the bank appeals to the U.S. Supreme Court. The prosecution relates to a six-count indictment for fraud, money laundering, and sanctions offenses in connection with the bank's alleged participation in a scheme to evade unilateral U.S. sanctions on Iran. On October 3, 2022, the U.S. Supreme Court agreed to hear Turkish state-owned lender Halkbank's bid to avoid criminal charges of money laundering, bank fraud and conspiracy for allegedly helping Iran evade economic sanctions.

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On June 29, 2022, Turkish President Recep Tayyip Erdoğan and U.S. President Joe Biden met on the sidelines of the NATO summit in Madrid. The two leaders discussed Sweden and Finland's NATO membership bids, the Ukraine war, as well as the situation in the Aegean and Syria.

On July 14, 2022, the U.S. House of Representatives approved an amendment to the annual defense spending bill that restricts the sale of F-16 fighter jets and modernization kits to Türkiye. Discussions between the United States and the Republic are ongoing regarding this matter.

On October 31, 2021, Turkish President Recep Tayyip Erdoğan and his U.S. counterpart Joe Biden met in Rome and agreed to establish a strategic mechanism that promotes high-level dialogue and addresses issues on which Türkiye and the U.S. do not fully agree, along with issues they are working on. On April 4, 2022, during the visit of U.S. Under Secretary of State for Political Affairs Victoria Nuland to Ankara, the Türkiye-U.S. Strategic Mechanism was launched. On September 15, 2022, Türkiye and the U.S. held the third meeting of the Türkiye-U.S. Strategic Mechanism Dialogue in Washington, and released a Joint Statement. According to the statement, building on their steadfast partnership and previous discussions under the framework of the U.S.-Türkiye Strategic Mechanism, the two countries reaffirmed their strong cooperation as partners and NATO allies and engaged in substantive dialogue on strategic global and regional issues and areas of bilateral cooperation.

On September 16, 2022, the U.S. lifted defense trade restrictions on the Greek Cypriot Administration for the 2023 fiscal year. On September 17, 2022, the Ministry of Foreign Affairs of Republic of Türkiye issued a press release in which it stated that Türkiye strongly condemned this expansion of the scope of the decision taken by the U.S. in September 2020 to lift the arms embargo towards the Greek Cypriot Administration and called on the U.S. to reconsider this decision and to pursue a balanced policy towards the two sides on the island.

On January 18, 2023, Türkiye's Minister of Foreign Affairs Mevlüt Çavuşoğlu and U.S. Secretary of State Antony J. Blinken held a press conference on the Türkiye – U.S. Strategic Mechanism in Washington. Mevlüt Çavuşoğlu stated that Türkiye's request for F-16 fighter jets and Sweden and Finland's NATO bids were different issues and should not have been related to each other.

On February 20, 2023, President Recep Tayyip Erdogan met with U.S. Secretary of State Antony J. Blinken in Ankara to discuss the United States' commitment to provide assistance in the wake of the February 2023 earthquakes in Türkiye, as well as matters relating to the ongoing hostilities in Ukraine and Finland and Sweden's NATO membership applications.

***NATO***

As regards Finland and Sweden's NATO membership applications, President Erdoğan drew attention to the ongoing activities of the members of the PKK/YPG and DHKP-C terrorist organizations in these countries, and in his speech delivered at the Turkish Grand National Assembly on May 23, 2022, he said that "we are one of the top countries that actively support the Alliance's activities. Yet, this doesn't mean that we will say 'yes' to every proposal brought before us. NATO's enlargement is meaningful to us only to the extent that our sensitivities are respected. Asking us for support for NATO membership while providing every kind of support to the PKK/YPG terrorist organization amounts to incoherence to say the least."

On June 28, 2022, Türkiye, Sweden and Finland signed a trilateral memorandum at the NATO Madrid Summit to address Türkiye's security concerns, paving the way for Finland and Sweden's NATO membership bids. Türkiye lifted its veto on Finland and Sweden's NATO membership applications following the memorandum. The first meeting of the Permanent Joint Mechanism established within the framework of the trilateral memorandum was held in Finland on August 26, 2022. During the meeting, the working principles of the Permanent Joint Mechanism were outlined, the developments about the fulfilment of the commitments recorded in the trilateral memorandum were reviewed, and the concrete steps that should be taken in the period ahead were discussed.

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On November 16, 2022, the Swedish Parliament passed the constitutional amendment making it possible to pass stricter anti-terrorism laws. The amendment came into force on January 1, 2023.

After the attacks targeting the Holy Quran in Sweden on January 21, 2023 and then repeated in Netherlands on January 24, 2023 and in Denmark on January 27, 2023, Türkiye's Ministry of Foreign Affairs separately condemned in the strongest terms these actions. On January 23, 2023, Turkish President Recep Tayyip Erdoğan stated that Sweden would not get any support for its admission to NATO from Türkiye, if they would not show respect to the religious beliefs of Türkiye. On February 16, 2023, Türkiye's Minister of Foreign Affairs Mevlüt Çavuşoğlu in a joint press conference with NATO Secretary General Jens Stoltenberg stated that the two countries should address Türkiye's concerns relating to their bids not only on paper but in actions as well.

***Russia***

On February 21, 2022, Russian President Vladimir Putin officially recognized Ukraine's breakaway Donetsk and Luhansk regions as independent states and signed related agreements with separatist leaders in the Kremlin. On February 22, 2022, the Ministry of Foreign Affairs of Republic of Türkiye issued a press release in which it stated that the Russian Federation's decision was unacceptable and Türkiye rejected it. In this press release, Türkiye also indicated that in addition to contradicting the Minsk Agreements, this decision constituted a clear violation of Ukraine's political unity, sovereignty and territorial integrity.

On February 24, 2022, Russian President Vladimir Putin announced a special military operation in eastern Ukraine's Donbas region. Following this announcement, the Ministry of Foreign Affairs of Republic of Türkiye issued a press release and said that this operation was unacceptable and Türkiye opposed it. Türkiye also called on the Russian Federation to immediately stop this unjust and unlawful act, and its support for the political unity, sovereignty and territorial integrity of Ukraine will continue.

Due to the war in Ukraine, Türkiye's flag carrier Turkish Airlines cancelled all Ukraine and Moldova flights as of February 24, 2022. On March 7, 2022, suspension of Ukraine and Moldova flights was extended until March 22, 2022. On March 15, 2022, suspension of Ukraine and Moldova flights was extended until April 10, 2022. On the same day, Turkish Airlines announced that all Belarus flights had been cancelled until March 31, 2022, and all Rostov and Sochi flights had been cancelled until April 10, 2022. On September 26, 2022, Turkish Airlines announced that the cancellation of Ukraine flights has been extended until December 13, 2022.

Following the start of Moscow's military intervention, Ukraine asked Türkiye to close the Çanakkale (Dardanelles) and Istanbul (Bosphorus) Straits to Russian ships. On February 27, 2022, Türkiye's Foreign Minister Mevlüt Çavuşoğlu said Türkiye would implement all provisions of the Montreux Convention in a transparent manner as the situation in Ukraine constitutes a "war", as defined thereunder.

On February 28, 2022, Turkish President Recep Tayyip Erdoğan said that Türkiye would use its authority over the Turkish Straits under the 1936 Montreux Convention to prevent the Russia-Ukraine crisis from further escalating. He also added that Türkiye had strictly fulfilled its responsibilities within the framework of the institutions and alliances with which it is involved, especially the UN, NATO, and the EU.

On March 7, 2022, Türkiye's Foreign Minister Mevlüt Çavuşoğlu announced that a tripartite meeting with Ukraine and Russia to be held at the Antalya Diplomacy Forum on March 10, 2022. He underlined that Türkiye had been engaged in intense diplomatic efforts to bring the Ukrainian and Russian parties together since the beginning of the war, and that since the war began he had spoken with Ukraine's Foreign Minister Dmytro Kuleba six times and with the Russian Federation's Foreign Minister Sergey Lavrov four times, and that Turkish President Recep Tayyip Erdoğan had held a total of 19 phone calls with his counterparts.

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On March 10, 2022, Türkiye's Foreign Minister Mevlüt Çavuşoğlu met with his Russian and Ukrainian counterparts in Antalya to mediate between the warring countries. After the meeting, Ukraine's Foreign Minister said that talks between the top diplomats of Russia and Ukraine produced no breakthrough on ending the war in Ukraine following Russia's invasion. Both parties, however, agreed to continue efforts to seek a solution to the humanitarian situation on the ground.

As of March 15, 2022, Türkiye had evacuated over 15,000 citizens from Ukraine since Russia began the war on Ukraine.

On July 22, 2022, Türkiye, the UN, Russia, and Ukraine signed the Black Sea Grain Initiative in Istanbul to resume Ukraine's Black Sea grain exports. The deal came after a general agreement was reached between the parties on an UN-led plan during talks in Istanbul on July 13, 2022, to form a coordination centre to carry out joint inspections at the entrance and exit of the harbours, and to ensure the safety of the routes. On October 29, 2022, Russia announced that it withdrew from the grain corridor agreement following a drone attack on Russian warships in the port of Sevastopol. On November 2, 2022, Russia re-joined the agreement, reserving its right to withdraw. However, Russian President Vladimir Putin said that Russia would not impede shipments of grain from Ukraine to Türkiye in the event that it withdraws from the agreement again.

On August 5, 2022, Turkish President Recep Tayyip Erdoğan and Russian President Vladimir Putin held a 4-hour meeting in Sochi to discuss bilateral ties, regional and international issues. In a joint statement after the wide-ranging meeting, the two leaders confirmed that the constructive relations between Ankara and Moscow played a role in reaching last month's historic deal on the safe transportation of grain and food products from Ukrainian ports.

On September 30, 2022, Russia announced the annexation of the Ukrainian regions of Donetsk, Luhansk, Zaporizhzhia and Kherson, following purported referenda in those regions. On the same date, the Ministry of Foreign Affairs of Republic of Türkiye issued a press release in which it rejected the legitimacy of the annexations, called them a "grave violation of international law" and called for continued negotiations to end the conflict.

On November 17, 2022, Turkish President Recep Tayyip Erdoğan stated that the Black Sea Grain Initiative had been extended for 120 days beginning November 19, 2022, in accordance with the resolution taken as a result of the quadrilateral talks hosted by Türkiye. Many countries and international bodies, including the United Nations and the European Union, praised Ankara for its commitment to extending the Black Sea Grain Initiative in line with the decision taken between Türkiye, the United Nations, the Russian Federation and Ukraine.

***Iraq & Syria***

Turkish armed forces continue to carry out their military activities against terrorist organizations as needed in order to ensure the security of the Turkish people and the country's borders. Operation Claw-Lock was launched on April 18, 2022 in order to prevent terrorist attacks from northern Iraq and to ensure border security. The most recent operation by the Turkish armed forces, Operation Claw-Sword, was launched on November 20, 2022, in part as a response to the recent terrorist attack in Istanbul, in order to prevent terrorist attacks from northern Iraq and Syria and to ensure border security.

According to the joint resolution by the Ministry of Treasury and Finance and Ministry of Interior, numbered 2022/4 and published in the Official Gazette dated December 1, 2022, the assets of several individuals and entities linked to the DAESH terrorist organization were frozen.

On December 28, 2022, Turkish National Defense Minister Hulusi Akar met with his Russian and Syrian counterparts in Moscow. Minister Akar said that the ministers discussed what could be done to improve the situation in Syria and the region as soon as possible, while ensuring peace, tranquility and stability. Minister Akar also added that during the meeting Türkiye emphasized that it respected the territorial integrity and sovereignty rights of all its neighbors, especially Syria and Iraq, and that its sole aim was the fight against terrorism, to neutralize PKK/YPG and DAESH terrorists which were a threat to Syria as well and there was no other purpose.

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***Israel***

On March 9-10, 2022, Israeli President Isaac Herzog visited Türkiye upon the invitation of Turkish President Recep Tayyip Erdoğan. President Erdoğan said that the historic visit of Israeli President Isaac Herzog would be a "new turning point" in relations and strengthening the ties with Israel was of great importance for regional stability and peace as well as for the two countries.

On May 25, 2022, Turkish Foreign Minister Mevlüt Çavuşoğlu visited Israel, the first visit by a Turkish foreign minister to Israel in nearly 15 years. Mevlüt Çavuşoğlu told that two countries agreed to reenergize the bilateral relations in many areas, resume meetings of different mechanisms as well as to resume talks on civil aviation in a joint news conference with his Israeli counterpart Yair Lapid.

On June 23, 2022, Israeli Foreign Minister Yair Lapid visited Türkiye. Turkish Foreign Minister Mevlüt Çavuşoğlu announced at the joint news conference that Türkiye and Israel have begun efforts to raise the diplomatic representation at relevant countries to the level of ambassadors.

On August 17, 2022, Turkish Foreign Minister Mevlüt Çavuşoğlu announced that Türkiye had decided to appoint an ambassador to Israel, to Tel Aviv. On October 6, 2022, amid the normalization of ties between Türkiye and Israel, Şakir Özkan Torunlar was appointed as the new Turkish ambassador to Tel Aviv. On November 17, 2022, Turkish President Recep Tayyip Erdoğan spoke by phone with Likud Party Chairman and Prime Minister-elect of Israel, Benjamin Netanyahu. During the call, President Erdoğan expressed his wish that the election results in Israel may be auspicious for the country and the region. President Erdoğan also stated that it was in the shared interest of Türkiye and Israel to maintain relations by respecting sensitivities on the basis of mutual interests, and to strengthen them on a sustainable basis. On December 27, 2022, Turkish President Recep Tayyip Erdogan received the credentials of Israeli Ambassador Irit Lillian.

***Eastern Mediterranean***

Exploratory talks to address issues related to the Aegean and Eastern Mediterranean between Türkiye and Greece continue, most recently in Athens on February 22, 2022. The consultative talks were focused on resolving bilateral disputes in the Aegean and Mediterranean seas, including achieving fair and equitable settlements to issues in the Aegean that began in 2002.

On June 1, 2022, Turkish Treasury and Finance Minister Nureddin Nebati visited Cairo to attend a meeting of the Islamic Development Bank. The trip marked Türkiye's first ministerial-level visit to Egypt in nine years.

On September 26, 2022, Türkiye lodged a protest with the U.S. and Greece after the deployment of armored vehicles by Greece on the islands of Midilli (Lesvos) and Sisam (Samos) with non-military status. In the note to Greece, the Ministry of Foreign Affairs of Republic of Türkiye stated that the deployment was another violation of Greece's obligations under the 1923 Treaty of Lausanne and the 1947 Treaty of Paris. On the other hand, in a protest note to the U.S., Türkiye urged respect for the status of Eastern Aegean islands and measures to be taken to prevent the use of its weapons there.

On December 13, 2022, in a letter to the UN, Türkiye and Libya rejected Greek criticisms of their agreements on the delimitation of hydrocarbon and maritime jurisdiction areas, and urged Greece to respect the sovereign decisions of the two countries and end escalatory actions.

On February 27, 2023, Türkiye's Minister of Foreign Affairs, Mevlüt Çavuşoğlu, and Egyptian Foreign Minister Sameh Shoukry met in Türkiye and held a joint press conference. After the meeting, the Egyptian Foreign Ministry spokesperson stated that a consultation process would be launched with Türkiye to restore relations between the two countries.

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***Kazakhstan***

President of Kazakhstan Kassym-Jomart Tokayev paid an official visit to Türkiye on May 10, 2022 to meet with his counterpart Turkish President Recep Tayyip Erdoğan. During the visit, a total of 15 agreements were signed between the two countries in the fields of transportation, defense industry, military intelligence, information technologies, culture, agriculture, transportation, trade, customs, environment, education, youth, communication and archives.

***Algeria***

President of Algeria Abdelmadjid Tebboune paid an official visit to Türkiye on May 16, 2022 to meet with his counterpart Turkish President Recep Tayyip Erdoğan. During the visit, a total of 15 agreements were signed between the two countries in the fields of social services, environment, mining, combating transnational organised crime, education and training, science, technology and innovation, fisheries and aquaculture, public works, media and communication. On December 5, 2022, Turkish Foreign Minister Mevlüt Çavuşoğlu announced that Türkiye would open a consulate general in Algeria's northwestern city of Oran.

***Saudi Arabia***

Turkish President Recep Tayyip Erdoğan paid an official visit to the Saudi Arabia on April 28, 2022, upon the invitation of King Salman bin Abdulaziz Al Saud of Saudi Arabia.

On June 22, 2022, Turkish President Recep Tayyip Erdoğan welcomed Saudi Crown Prince Mohammed bin Salman with an official ceremony in Ankara. The leaders emphasized the countries' determination to start a new era of comprehensive cooperation in many areas in their joint declaration.

***Qatar***

Qatar Emir Sheikh Tamim paid an official visit to Türkiye on October 14, 2022 to meet Turkish President Recep Tayyip Erdoğan. The two leaders co-chaired the Türkiye-Qatar Supreme Strategic Committee's 8th Meeting, which was followed by the signing of a Joint Declaration and 11 agreements between the two countries.

***Cuba***

Cuban President Miguel Mario Diaz-Canel Bermudez paid an official visit to Türkiye on November 23, 2022, to meet Turkish President Recep Tayyip Erdoğan. While a total of six agreements were signed between the two countries during the visit, President Erdoğan stated that the leaders had confirmed their determination to increase the Türkiye-Cuba trade volume to U.S.$200 million.

***Indonesia***

On November 14, 2022, Turkish President Recep Tayyip Erdoğan, who was in Bali for the 17th G20 Heads of State and Government Summit, met with President Joko Widodo of Indonesia. Prior to the G20 Summit, Türkiye and Indonesia signed five agreements in the fields of defense industry, technology, forestry, environment, and development.

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***Kahramanmaraş Earthquakes***

On February 6, 2023, magnitude 7.7 and 7.6 earthquakes occurred in Kahramanmaraş province, which affected more than 13 million people across 11 provinces. After the earthquakes, NATO Secretary General Jens Stoltenberg, OSCE Secretary General Helga Schmid, EU Commissioner for Neighbourhood and Enlargement Negotiations Olivér Várhelyi, the Minister for International Development Cooperation and Foreign Trade of Sweden, on Behalf of the Swedish Presidency of the EU Council Johan Forssell, the Secretary General of the Organization of Islamic Cooperation Hissein Brahim Taha, Malaysian Prime Minister Anwar Ibrahim, Iraqi Kurdish Regional Government President Nechirvan Barzani, Qatari Emir Sheikh Tamim, Pakistani Prime Minister Shehbaz Sharif, Georgian Prime Minister Irakli Garibashvili, UN Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator Martin Griffiths, Ministers of Foreign Affairs from many countries, including Greece, Equatorial Guinea, Libya, Israel, Bosnia and Herzegovina, Armenia, Uzbekistan, USA, North Macedonia, Lebanon, Hungary, Egypt, Congolese State Minister & Director of Presidential Cabinet and the Jordanian Deputy Prime Minister and Minister of Foreign Affairs came to Türkiye to show their solidarity and support for the people affected by the earthquakes.

On February 11, 2023, the Türkiye-Armenia border reopened for the first time in 35 years to carry humanitarian aid to people affected by earthquakes.

On March 2, 2023, the UN Resident Coordinator in Türkiye Alvaro Rodriguez visited the tent city established in a stadium in the southern Hatay province and stated that the UN would continue to support Türkiye following the earthquakes.

As of February 16, 2023, 101 countries have offered assistance for search, rescue and aid in the earthquake regions and 66 countries with 5654 personnel are present on the ground. Also, two are expected to send their search and rescue teams of 455 personnel.

As of March 7, 2023, 16 countries installed 34 field hospitals in the cities affected by the earthquakes. Additionally, 179,655 tents, 2,076 temporary housing containers and 2,075 mobile hygiene units were delivered by various countries for the use of people in the impacted cities.

***Migration Issues***

The Republic is continuing its humanitarian efforts to provide shelter to those fleeing the conflict in Syria. As of September 15, 2022, Türkiye had granted temporary protection to 3,656,157 Syrians. 48,016 of those are residing in temporary accommodation centres. As of December 2021, there were 1.26 million school-age (between 5 and 17 years old) Syrian children in Türkiye and 731,713 of them can attend school. The number of polyclinic services provided to Syrians since 2011 has reached over 66 million, while those receiving in-patient treatment exceeded 2.3 million. Almost 2 million surgeries were conducted on Syrians and over 526,000 Syrian babies were born in Türkiye.

The Republic is continuing its humanitarian efforts to provide shelter to those fleeing the conflict in Syria. As of January 19, 2023, Türkiye had granted temporary protection to 3,513,776 Syrians.

**ECONOMIC DEVELOPMENTS** 

Nominal GDP was approximately TL 7,249 billion in 2021. In the first quarter of 2022, nominal GDP was TL 2,512 billion. In the second quarter of 2022, nominal GDP was TL 3,428 billion. In the third quarter of 2022, nominal GDP was TL 4,266 billion. In the fourth quarter of 2022, nominal GDP was TL 4,801 billion.

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The following table sets forth the percentage of GDP represented by type of economic activity (at current prices, expressed in percentages, and calculated in constant TL with a purchasing power set as of February 28, 2023 for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| **GDP by Type of Economic Activity\* (in %)** | **2022<br>Q1** | **2022<br>Q2** | **2022<br>Q3** | **2022<br>Q4** |
| 1. A- Agriculture, forestry and fishing | 2.3 | 4.5 | 11.1 | 6.0 |
| 2. BCDE- Industry | 29.2 | 28.8 | 25.2 | 26.4 |
| 3. F- Construction | 4.4 | 5.4 | 4.5 | 4.9 |
| 4. GHI- Services | 25.2 | 26.9 | 26.2 | 27.1 |
| 5. J- Information and communication | 2.3 | 2.2 | 2.1 | 2.8 |
| 6. K- Financial and insurance activities | 3.6 | 3.8 | 3.3 | 2.9 |
| 7. L- Real estate activities | 4.2 | 3.4 | 3.1 | 3.2 |
| 8. MN- Professional, administrative and support service activities | 4.2 | 4.4 | 4.3 | 5.0 |
| 9. OPQ- Public administration, education, human health and social work activities | 11.1 | 8.5 | 8.7 | 9.1 |
| 10. RST- Other service activities | 2.4 | 1.6 | 1.5 | 2.3 |
| 11. Sectoral total | 88.8 | 89.3 | 90.0 | 89.7 |
| 12. Taxes-Subsidies | 11.2 | 10.7 | 10.0 | 10.3 |
| 13. Gross Domestic Product (Purchaser's Price) | 100.0 | 100.0 | 100.0 | 100.0 |

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<sup>\*</sup> Based on the statistical classification of economic activities in the European Community, NACE Rev. 2

*Source*: TURKSTAT

The following table sets forth increases or decreases in GDP (in the chain linked volume index and expressed in percentages) for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| **GDP growth rates** | **Q1** | **Q2** | **Q3** | **Q4** |
|  | *(in %)* | *(in %)* | *(in %)* | *(in %)* |
| 2021 | 7.5 | 22.2 | 7.9 | 9.6 |
| 2022 | 7.6 | 7.8 | 4.0 | 3.5 |

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*Source*: TURKSTAT

In February 2023, CPI increased to 3.15% and domestic PPI increased to 1.56% compared to the previous month. In February 2023, the Republic's annual CPI and domestic PPI increased by 55.18% and 76.61%, respectively, as compared to the same month of the previous year.

On February 8, 2023, the Government offered an interest rate of 10.82% for its 665-day TL denominated fixed coupon Government Bond, compared to 21.19% for its 581-day TL denominated fixed coupon Government Bond on February 16, 2022.

On January 25, 2023, the Government offered an interest rate of 9.90% for its 1659-day TL denominated fixed coupon bond issuance compared to 26.34% for its 1694-day TL denominated fixed coupon Government Bond on January 12, 2022.

The industrial production index decreased by 0.2% in December 2022 compared to the same month of the previous year.

In 2021, the unemployment rate decreased by 1.1% to 12.0%, as compared to the previous year.

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In December 2022, the seasonally adjusted unemployment rate increased by 0.1 percentage point to 10.3% as compared to the previous month. The seasonally adjusted employment rate realized as 48.5% without any change compared to the previous month and the number of employed people increased by 18,000 to 31.573 million. The following table indicates non-seasonally adjusted unemployment figures for the periods indicated:

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| | | |
|:---|:---|:---|
| **2022** | **Unemployment<br>rate (in %)** | **Number of<br>unemployed<br>(In Thousands)** |
|  January | 11.2 | 3773 |
|  February | 10.7 | 3594 |
|  March | 11.0 | 3707 |
|  April | 11.0 | 3750 |
|  May | 10.7 | 3685 |
|  June | 10.4 | 3564 |
|  July | 10.1 | 3454 |
|  August | 9.8 | 3358 |
|  September | 10.1 | 3477 |
|  October | 10.2 | 3534 |
|  November | 10.2 | 3576 |
|  December | 10.3 | 3633 |

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*Source*: TURKSTAT

On February 1, 2022, the CBRT published the "Communique on Deposit and Participation Accounts Scheme for non-Resident Turkish Citizens (YUVAM)" numbered 2022/7 for the purpose of extending the application area of the new deposit protection scheme to Turkish citizens resident in foreign countries, and amended the same on February 18, 2022 with the Communique No. 2022/8, which extends the scope of accounts to companies owned or partnered by non-residents. On March 7, 2022, "Communique on Supporting the Conversion to Turkish Lira Depository and Participation Accounts" and "Communique on Supporting the Conversion of Gold Deposits to Turkish Lira Depository and Participation Accounts" were amended respectively with the Communiques No. 2022/9 and 2022/10 for the purpose of allowing individuals and legal entities to renew their accounts at maturity. For additional information on the Communiques, see "*— Monetary Policy.*"

On January 20, 2022, the Turkish Parliament approved the new legislation on Amending the Tax Procedure Law and Corporate Tax Law. The relevant "Law on Amending Tax Procedural Law and Corporation Tax Law" numbered 7352 was published in the Official Gazette dated January 29, 2022, amended on February 11, 2022 with the Communique No. 2022/19. The legislation brings a corporation tax exemption on the gains earned by converting the foreign exchanges to Turkish Lira under the determined provisions. If corporation taxpayers convert their foreign currencies, which are available on their balance sheet on December 31, 2021, into a TL time deposit or participation account with at least three months maturity until the specified date, the income derived from such transactions will be exempt from tax under the determined provisions of the legislation. Later, "Law on Amending Income Tax Law and Certain Laws and Decrees Having the Force of Law" numbered 7420 was published in the Official Gazette dated November 9, 2022 ("**Law No. 7420**") enabled the corporation taxpayers to benefit from the aforementioned exemption if they make such conversion until December 31, 2023. The legislation also brings the postponement of the inflation accounting until December 2023 under the determined provisions.

On January 31, 2022, President Recep Tayyip Erdoğan announced a plan to establish a new loan guarantee package under the Credit Guarantee Fund scheme worth TL 60 billion. According to this announcement, this new credit package will have three main sub-packages: (i) card payment support to all companies of all sizes for their operating expenditures, (ii) investment support to the companies working for the production of higher value-added products, and (iii) export support to the SMEs that engage with the activities generating foreign exchange

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earnings and have the potential to make exports. On February 12, 2022, the Minister of Treasury and Finance, Nureddin Nebati, announced the details of the new guarantee scheme. According to this announcement, of the new guarantee scheme worth TL 60 billion in total, TL 25 billion will be strictly channelled towards investment supports, TL 25 billion towards export supports and TL 10 billion towards card payment supports.

On May 9, 2022, President Recep Tayyip Erdoğan announced three new housing finance support packages. In the first support package, citizens who will buy a house for the first time will be provided by a housing loan with a maturity of up to 10 years and an interest rate of 0.99% for houses worth up to 2 million Turkish Liras. In the second support package, on the condition that citizens convert their savings in foreign currency accounts opened before April 1, 2022, into Turkish liras, or sell physical gold to CBRT for at least half of the value of the house, a housing loan with a maturity of 10 years and an interest rate of 0.89% will be provided for houses worth up to 2 million Turkish Liras. In the last loan package, a resource of 20 billion Turkish lira was allocated for the construction projects of which at least 40% have been completed and 50% have not been sold as of May, provided that eligible companies will not change the house prices for a year.

On September 13, 2022, President Recep Tayyip Erdoğan announced a social housing project which aims to help low-income citizens own houses and tackle problems regarding property prices and rents. The target is to build 500,000 social housing, and 50,000 workplaces, also provide 250,000 residential land plots, in 81 provinces in five years covering 2023-2028.

On September 4, 2022, the Government announced the Medium Term Program covering the 2023-2025 period (the "2023-2025 Medium Term Program"). In the 2023-2025 Medium Term Program, the GDP growth target is 5% for 2022 and 2023, 5.5% for 2024 and 2025. According to the Medium Term Program, the Central Government budget deficit to GDP ratio target is 3.4% for 2022, 3.5% for 2023, 2.5% for 2024 and 1.5% for 2025. The EU-defined general government debt stock to GDP ratio, which is expected to be 36.7% in 2022, is projected to be 35.2% in 2023, 33.6% in 2024 and 32.1% in 2025. The current account deficit to GDP ratio target is 5.9 % for 2022, 2.5% for 2023, 1.4% for 2024 and 0.9% for 2025. The CPI inflation target is 65% by the end of 2022, 24.9% by the end of 2023, 13.8% by the end of 2024 and 9.9% by the end of 2025. The unemployment target is 10.8% for 2022, 10.4% for 2023, 9.9% for 2024, and 9.6% for 2025.

On December 22, 2022, Türkiye announced that Türkiye's monthly minimum wage will be 8,506.80 Turkish lira in 2023, which is a 55% increase from the level determined in July 2022 and a 100% increase from January 2022. President Recep Tayyip Erdoğan announced that the minimum wage may be increased against in 2023 if necessary.

On January 4, 2023, President Recep Tayyip Erdogan announced that the lowest pension for retired citizens in Türkiye would be raised to TL 5,500 in 2023, up from TL 3,500. President Recep Tayyip Erdogan also announced that wages for active and retired civil servants would be raised by 30% in 2023.

Also on January 4, 2023 the Ministry of Treasury and Finance announced a new housing finance program called "My New Home", which aims to help middle-income citizens own houses. Under the program, eligible citizens will be able to apply for loans with maximum 15 years maturity and with interest rates of 0.69% up to TL 2 million, 0.79% between TL 2 million and TL 4 million and 0.99% between TL 4 million and TL 5 million. The program offers finance ministry support for payments for the first three years of the loans, and payment plans will be structured in accordance with household income through the loan maturity.

On March 1, 2023, President Recep Tayyip Erdogan announced that the Disaster Reconstruction Fund will be established to help the 11 provinces most directly effected by the earthquakes recover quickly. The Disaster Reconstruction Fund will cover the infrastructure and superstructure costs in the disaster area. Donations, aids and grants collected in the fund will be used for the revival of the cities impacted by the recent earthquakes.

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**TOURISM** 

In January 2023, the number of foreign visitors visiting the Republic increased by 56.51% to 2,005,967 people as compared to the same month in 2022. Tourism revenues increased by 53.4% and reached U.S.$46,284,907,000 in 2022 compared to 2021.

**EMPLOYMENT AND WAGES** 

In the fourth quarter of 2022, seasonally adjusted total civilian employment was 31.460 million and the seasonally adjusted labour force participation rate was at 53.9%, which represented a 0.9 percentage point increase compared to the previous quarter. In December 2022, seasonally adjusted total civilian employment was 31.573 million and the seasonally adjusted labour force participation rate was at 54.1%, which represented a 0.1 percentage point increase compared to the previous month.

As of January 2023, the total asset value of the Unemployment Insurance Fund amounted to approximately TL 125.23 billion. As of January 2023, 84.14% of the Unemployment Insurance Fund was invested in bonds and 15.86% of the assets were held in deposits.

As of November 2022, there were 374 pension funds offered to the public. As of November 2022, the total net asset value of these funds increased to TL 404.6 billion from approximately TL 237 billion in November 2021.

In January 2023 President Recep Tayyip Erdogan announced that the mandatory minimum retirement age (previously age 58 for women and age 60 for men) would be abolished.

**FOREIGN TRADE AND BALANCE OF PAYMENTS** 

In January 2023, the trade balance posted a deficit of U.S.$14.237 billion, with a 38.4% increase compared with January 2022. In January 2023, total goods imported (c.i.f.), including gold imports, increased by 20.7% to U.S.$33.606 billion, as compared to approximately U.S.$27.844 billion during the same period in 2022. In January 2023, the import of capital goods, which are used in the production of physical capital, increased by 32.7% over the same period in 2022; the import of intermediate goods such as partly finished goods and raw materials, which are used in the production of other goods, increased by 15.5% over the same period in 2022; and the import of consumption goods increased by 70.6% over the same period in 2022. In January 2023, total goods exported (f.o.b.), increased by 10.3% to U.S.$19.369 billion, as compared to approximately U.S.$17.554 billion during the same period of 2022. According to provisional data, foreign direct investment inflows into Türkiye amounted to U.S.$374 million in December 2022. The following table summarizes the balance of payments of Türkiye for the period indicated:

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| | | |
|:---|:---|:---|
|  | **December<br>2022** | **December<br>2022** |
|  | *in millions<br>of U.S.<br>Dollars* | *in millions<br>of U.S.<br>Dollars* |
|  **CURRENT ACCOUNT** |  | **-5,910** |
|  Trade Balance |  | -8089 |
|  Goods Exports |  | 22880 |
|  Goods Imports |  | 30969 |
|  Services |  | 2498 |
|  Primary Income |  | -533 |
|  Secondary Income |  | 214 |
|  **CAPITAL ACCOUNT** |  | -7 |

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| | | |
|:---|:---|:---|
|  | **December<br>2022** | **December<br>2022** |
|  | *in millions<br>of U.S.<br>Dollars* | *in millions<br>of U.S.<br>Dollars* |
|  **FINANCIAL ACCOUNT** |  | **-7,923** |
|  Direct Investment (net) |  | -374 |
|  Portfolio Investment (net) |  | -828 |
|  Assets |  | -102 |
|  Liabilities |  | 726 |
|  Other Investment (net) |  | -6721 |
|  Assets |  | -5320 |
|  Liabilities |  | 1401 |
|  **RESERVE ASSETS** |  | **2,434** |
|  **NET ERRORS AND OMISSIONS** |  | **428** |

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*Source*: CBRT

In December 2022, the volume of crude oil imports decreased by 23.93% compared to December 2021. In December 2022, natural gas imports decreased by 6.07% to 5,808.85 million cubic meters compared to 6,184.26 million cubic meters in December 2021. In December 2022, liquefied petroleum gas imports increased by 48.62% to 365,495.798 tons compared to 245,922.037 tons in December 2021.

As of January 2023, total gross international reserves were U.S.$125,340 million (compared to U.S.$109,717 million as of January 2022). As of January 2023, gold reserves were U.S.$50,579 million (compared to U.S.$38,595 million as of January 2022) and the CBRT gross foreign exchange reserves were U.S.$67,164 million as of January 2023 (compared to U.S.$63,302 million as of January 2022).

As of January 2023, the CBRT reported contingent liabilities in foreign currency, including commercial banks' reserve requirements held at the CBRT, to be approximately U.S.$54,699 million (compared to approximately U.S.$54,746 million as of January 2022). As of January 2023, the CBRT reported foreign currency loans, securities and deposits to be approximately U.S.$32,599 million (compared to approximately U.S.$27,286 million as of January 2022).

As of March 1, 2023, the CBRT held approximately TL 93.36 billion in public sector deposits.

**MONETARY POLICY** 

The inflation target for 2023 is 5%, with a 2% uncertainty band in both directions.

On March 2, 2023, the CBRT foreign exchange buying rate for U.S. Dollars was TL 18.8670 per U.S. Dollar.

The following table displays the period-end foreign exchange buying rate of Turkish Lira per U.S. Dollar, euro, and Japanese Yen and against the U.S. Dollar-euro currency basket:

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| | |
|:---|:---|
| **Period-End Exchange Rates** | **2022<sup>\*\*</sup>** |
|  Turkish Lira per U.S. Dollar | 18.70 |
|  Turkish Lira per euro | 19.93 |
|  Turkish Lira per 100 Japanese Yen | 14.13 |
|  Turkish Lira per Currency Basket\* | 19.32 |

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<sup>\*</sup> The basket consists of U.S.$0.5 and €0.5. 

<sup>\*\*</sup> As of December 30, 2022.

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*Source*: CBRT

On January 10, 2022, the CBRT published the "Communique on Amending the Communique on Supporting the Conversion to TRY Deposits (numbered 2021/14)" numbered 2023/2 which allows resident legal persons to convert their FX deposit accounts, which were held at banks at any date between December 31, 2021 and December 31, 2022, into TRY deposits.

On January 19, 2022, the CBRT announced the establishment of a Bilateral Currency Swap Agreement with the Central Bank of the United Arab Emirates between the UAE Dirham (AED) and the Turkish lira in the nominal size of mutually AED 18 billion and TL 64 billion. The CBRT also added that the agreement will stand for a period of three years, with the possibility of an extension through mutual agreement.

On January 20, 2022, the Monetary Policy Committee decided to keep the policy rate (one-week repo auction rate) at 14%.

On January 27, 2022, the CBRT released the first inflation report of the year which stated its inflation forecasts as 23.2% and 8.2% for year-end 2022 and 2023, respectively. The CBRT stated in the report that the monetary policy stance will be decided with a focus on evaluating the sources of the risks to inflation, their permanency and how they can be controlled by monetary policy, with an ultimate goal of long-term price stability. The CBRT also stated that the deflation process is expected to start on the back of measures taken for sustainable price and financial stability along with the decline in inflation owing to the base effect.

On February 1, 2022, CBRT published the "Communique on Deposit and Participation Accounts Scheme for non-Resident Turkish Citizens (YUVAM)" numbered 2022/7 for the purpose of allowing Turkish citizens who are not resident in Türkiye to open FX Protected TL accounts in domestic banks. With an amendment on March 22, 2022, the CBRT determined those who could benefit from the YUVAM mechanism as non-resident persons and the companies the fund holders of which are non-resident persons and the legal residence of which is outside Türkiye. According to this Communique and the Implementation Instructions for the Communique prepared by the CBRT; if non-resident persons or their companies established abroad convert their U.S. Dollar/EUR/GBP deposit or participation accounts in domestic banks into Turkish Lira denominated YUVAM accounts, they can benefit from the foreign currency protection mechanism same as that in FX Protected TL Depository Communique. Eligible non-resident persons and their companies can participate in this deposit scheme with maturity options of 3 months, 6 months, 1 year and 2 years. In the event that the relevant foreign currency rate at the end of the given maturity is higher than the initial conversion rate, and such difference exceeds the accrued interest or profit share, CBRT will reimburse the depositing person via relevant deposit or participation bank. The accounts opened within the scope of YUVAM mechanism may be renewed at the end of their maturity. The renewed accounts continue to benefit from the support, with a chosen term, for an amount up to the foreign currency equivalent of TL balance at the end of the maturity as converted at the exchange rate at maturity.

On February 17, 2022, the Monetary Policy Committee decided to keep the policy rate (one-week repo auction rate) at 14%.

On March 1, 2022, the CBRT made some amendments in the "Implementation Instructions for Advance Loans Against Investment Commitment". In this respect, it was stipulated that all contracts and pricing that the firms using advance loans against investment commitment would conduct with residents regarding the relevant investment should be in Turkish lira only. It was also stipulated that firms using the credits should make the domestic pricing and sale of the goods, produced via the relevant investment, in Turkish lira only. In addition, a facility was introduced allowing for the use of credits at a fixed interest rate only and with a maximum total interest rate reduction of 500 basis points over the policy rate depending on some commitments. On April 20, 2022, the CBRT made further amendments in the Implementation Instructions for Advance Loans Against Investment Commitment. In this respect, tourism firms were also provided with the facility to use advance loans against investment commitment at an interest rate with reductions of up to 500 basis points in total over the policy rate, against a commitment to generate FX-earning services revenues, invest in tourism development regions, use domestic input, and receive external financing of at least 20%. The total credit limit was increased to TL 150 billion, TL 50 billion of which was allocated to advance loans against investment commitment to be used by firms operating in the tourism sector. A limit of TL 250 million was allocated to firms with an SME status, and TL 1.5 billion to other firms.

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On March 17, 2022 and April 14, 2022, the Monetary Policy Committee decided to keep the policy rate (one-week repo auction rate) at 14%.

On April 15, 2022, with an amendment to the CBRT's Export Circular, the obligation of exporters to sell their FX earnings to the CBRT was raised from 25% to 40%.

On April 18, 2022, with an amendment to the CBRT Regulation regarding "Invisible Balances", it was stipulated that in case FX proceeds from FX earning services/ operations are sold to banks, at least 40% of this amount should be sold to the CBRT.

On April 23, 2022, in line with its main objective of price stability and in the scope of efforts towards supporting financial stability and encouraging liraization, the CBRT announced that it had strengthened its macroprudential policy toolkit and had revised the reserve requirement regulation. In this context, banks' and financing companies' TL-denominated commercial cash loans will be subject to reserve requirements, excluding some loans. Accordingly, commercial loans, which have been extended in four-week periods since April 1, 2022, will be subject to a reserve requirement of 10% of the said loans during the maintenance periods of four weeks. For banks with a loan growth rate above 20% by May 31, 2022 compared to December 31, 2021, the difference between their outstanding loan balances on March 31, 2022 and December 31, 2021 will be subject to reserve requirements of 20% of this difference, for a period of 6 months. Moreover, the CBRT decided to differentiate FX deposit/participation fund reserve requirement ratios according to the conversion rate of real person's FX accounts to TRY accounts. In this respect, based on said conversion rate, the CBRT decided to implement an additional reserve requirement of (i) 500 basis points for banks with a conversion rate below 5%, and (ii) 300 basis points for banks with a conversion rate between 5% and 10%, to be effective from the calculation date of May 27, 2022 with the maintenance period starting on June 10, 2022. In addition, reserve requirement ratios of financing companies, which were 0%, were set at the same level as banks, and their liabilities to domestic banks were included in the scope of reserve requirements, to be effective from the calculation date of April 29, 2022, with the maintenance period starting on May 13, 2022.

On April 28, 2022, the CBRT released the second inflation report of the year, which stated its inflation forecasts as 42.8%, 12.9% and 8.3% for year-end 2022, 2023 and 2024, respectively. The CBRT stated in the report that one of the essential elements of its policy review process was the liraization strategy, which is grounded in the construction of the financial system through Turkish lira instruments. The CBRT expects the liraization to support monetary policy instruments in the medium and long term in the fight against inflation through three channels. According to the report, the first channel will be to encourage TL savings with FX Protected Deposits and similar instruments, ensuring that their returns are not lower than those of alternative instruments. The second channel is the gradual management of the transition to TL instruments for the CBRT liquidity and provisioning operations. In this framework, the prioritisation of Turkish lira collateral and instruments in accessing the TL, and in particular the reduction of the share of currency swap transactions in total funding have been targeted. Thirdly, to secure permanent gains in disinflation by improving production capacity, the report states that it is important to meet the funding needs of sectors that support the sustainable improvement of the current account balance and engage in foreign exchange earning activities at appropriate maturities in TL terms.

On May 26, 2022, the Monetary Policy Committee decided to keep the policy rate (one-week repo auction rate) at 14%.

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On June 10, 2022, the CBRT published the "Communique on Amending the Communique on Reserve Requirements (numbered 2013/15)" numbered 2022/19 for the purpose of increasing the reserve requirement ratio for Turkish lira-denominated commercial cash loans from 10% to 20% with a view to supporting financial stability and published the "Communique on Maintenance of Turkish Lira-Denominated Securities for Foreign Currency Liabilities" numbered 2022/20 which requires banks to maintain additional Turkish lira long-term fixed-rate securities for foreign currency deposits/participation funds as of July 29, 2022 as a complementary step to the action increasing the weight of the Turkish lira fixed-rate securities in the collateral pool that would become effective on June 24, 2022 in the context of the announcement about the collateral and liquidity policy actions at the last Monetary Policy Committee meeting Furthermore, with the communiques numbered 2022/24, 2022/25, 2022/30 and 2023/4, the reserve requirement ratio for the assets subject to reserve requirement, owned by banks and financial institutions were distinguished. Accordingly, reserve requirement for such assets is 0% for banks and 20% for financial institutions. Further, the reserve requirements for Turkish lira denominated deposit funds and participation funds with maturity over 3 months is decreased to 0%. Turkish lira denominated securities issued by development and investment banks with a maturity longer than one are subject to reserve requirement at 0%.

On June 13, 2022, the Implementation Instructions for Rediscount Credits for Export and Foreign Exchange Earning Services were revised. Accordingly; the maximum maturity was set at 360 days for Turkish lira rediscount credits and 720 days for the defense industry; interest rates for Turkish lira rediscount credits were set to be 300 basis points, 200 basis points, and 100 basis points below the policy rate for maturities of 0-90 days, 91-180 days, and 181-720 days, respectively; in addition to the existing condition for access to TRY rediscount credits (stipulating that 40% of export proceeds should be sold to the CBRT), firms should also make a commitment to sell at least 30% of their export proceeds to a bank and firms using TRY rediscount credits should pledge not to buy the sold amount of foreign currency again for a month from the date of the first sale of export proceeds.

On June 23, 2022, the Monetary Policy Committee decided to keep the policy rate (one-week repo auction rate) at 14%.

On July 4, 2022, the minimum Government Domestic Debt Securities (GDDS) collateral blockage for all swap transactions with the CBRT and the GDDS collateral requirement for Interbank Money Market Operations, that had been changed from 30% to 45% on June 6, 2022, were increased to 50%, effective on July 22, 2022 and the collateral discount rates, that had been changed from 15% to 30% on June 6, 2022, were increased to 50% for indexed securities as well as FX-denominated and gold-backed assets subject to collateral with an amendment to the Implementation Instructions for Turkish Lira Operations and the Implementation Instructions for FX Markets also effective on July 22, 2022.

On July 21, 2022, the Monetary Policy Committee decided to keep the policy rate (one-week repo auction rate) at 14%.

On July 28, 2022, the CBRT released the third inflation report of the year, which stated its inflation forecasts as 60.4%, 19.2% and 8.8% for year-end 2022, 2023 and 2024, respectively.

On August 18, 2022, the Monetary Policy Committee decided to decrease the policy rate (one-week repo auction rate) from 14% to 13%. In the summary of the Monetary Policy Committee Meeting published on August 25, 2022, it was stated that annual consumer inflation decreased in energy whereas it went up in other groups, with core goods and services having a significant impact on the rise in inflation. The Committee expects the disinflation process to start on the back of measures taken and decisively implemented for strengthening sustainable price and financial stability along with the resolution of the ongoing regional conflict. It is important that financial conditions remain supportive to preserve the growth momentum in industrial production and the positive trend in employment in a period of increasing uncertainties regarding global growth as well as escalating geopolitical risk. Accordingly, the Committee decided to reduce the policy rate by 100 basis points, and has assessed that the updated level of policy rate is adequate under the current outlook.

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On August 20, 2022, the CBRT announced the following decisions for loans subject to the reserve requirement practice it had stated in its press release of April 23, 2022: (i) the reserve requirement maintenance being applied at a ratio of 20% was replaced by maintenance of securities at 30% for banks to enhance the efficiency of the practice, (ii) securities equaling the loan amount exceeding the loan growth rate of 10% as of December 30, 2022 compared to July 29, 2022 will be maintained for a period of one year, (iii) in case the types of loans that are excluded are not extended against expenditure, such loans will be subject to the securities maintenance practice. Additionally the CBRT decided that for commercial loans to be extended from August 20, 2022 until the end of 2022, securities will be maintained based on 20% of the loan amount to be extended at an annual compound interest rate 1.4 times higher than the CBRT-released annual compound reference rate, and 90% of the loan amount to be extended at an annual compound interest rate 1.8 times higher than the CBRT-released annual compound reference rate. On October 18, 2022, CBRT announced that; (i) the security maintenance obligation is increased from 3% to 5%, effective from October 28, 2022, and (ii) general security maintenance rate will be subject to adjustments as if a bank's ratio of Turkish Lira deposits to total deposits is; (a) less than 50%, then such rate is to be increased to 12%, or (ii) greater than or equal to 50% but less than 60%, then such rate is to be increased to 7%, effective from December 30, 2022. On December 31, 2022, CBRT announced that; (i) other financial institutions that are deemed so by the CBRT will be subject to such rules and (ii) above described rule on maintenance of securities based on the CBRT-release annual compound reference rate and effective interest rate should continue on the interest rate multiplier benchmarks to be announced by the CBRT. On January 7, 2023, the CBRT announced its intention to further amend rules on the maintenance of securities, and adjusted the rules it announced on October 18, 2022, effective from February 24, 2023, the general rate is increased to 10%; however, if a bank's ratio of Turkish Lira deposits to total deposits is: (i) less than 50%, then such rate is to be increased to 17%, (ii) greater than or equal to 50% but less than 60%, then such rate is to be increased to 12%, (iii) greater than or equal to 60% but less than 70%, then such rate is to be decreased to 5%, and (iv) greater than or equal to 70%, then such rate is to be decreased to 3%.

On September 22, 2022, the Monetary Policy Committee decided to decrease the policy rate (one-week repo auction rate) from 13% to 12%.

On October 20, 2022, the Monetary Policy Committee decided to decrease the policy rate (one-week repo auction rate) from 12% to 10.5%. In the summary of the Monetary Policy Committee Meeting published on October 27, 2022, it was stated that it was critically important that financial conditions remain supportive to preserve the growth momentum in industrial production and the positive trend in employment in a period of increasing uncertainty regarding global growth as well as further escalation of geopolitical risks. Accordingly, the Monetary Policy Committee decided to reduce the policy rate by 150 basis points. According to the summary of the meeting, the Committee evaluated taking a similar step in the following meeting that will take place on November 24, 2022, and ending the rate cut cycle.

On October 27, 2022, the CBRT released the fourth inflation report of the year, which stated its inflation forecasts as 65.2%, 22.3% and 8.8% for year-end 2022, 2023 and 2024, respectively. In the report, the CBRT said that it had decided to reduce the policy rate by a total of 350 basis points in August, September and October considering that financial conditions should be supportive to preserve the growth momentum in industrial production and the positive trend in employment in a period of increasing global uncertainties.

On November 24, 2022, the Monetary Policy Committee decided to decrease the policy rate (one-week repo auction rate) from 10.5% to 9%. In the summary of the Monetary Policy Committee Meeting published on December 1, 2022, it was stated that the Committee assessed the financing costs of companies' production-oriented activities which should be set at reasonable levels in order to minimize the probable effects of aforementioned global uncertainties and risks on investment and production capacity via a proactive approach, thereby maintaining the supply continuity and the current surplus capacity. Accordingly, the Committee decided to reduce the policy rate by 150 basis points. Considering the increasing risks regarding global demand, the Committee determined that the then-current policy rate was adequate and decided to end the rate cut cycle that started in August.

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As of January 2023, the CBRT's international reserve level was approximately U.S.$125.3 billion. The Republic deems it necessary to consider both official reserves and external foreign exchange deposits of the banking system and corporations when evaluating the adequacy of all reserve assets held against external liabilities, due to the typical inclination of households and corporations towards foreign exchange deposits in the banking sector. The CBRT aims to strengthen its international reserves and effectively manage its reserves. However, as a result of the implementation of certain monetary and exchange rate policies, short-term fluctuations can be observed in the level of foreign exchange reserves. Of these policies, banks' use of the foreign exchange and gold swap facilities provided by the CBRT has been the main cause of temporary fluctuations in the level of foreign exchange reserves. Other factors affecting foreign exchange reserves include changes in foreign exchange and Turkish Lira required reserve ratios, changes in banks' free foreign currency accounts, foreign exchange sales to energy importing state-owned enterprises, foreign debt and other current foreign exchange transactions carried out on behalf of the Ministry of Treasury and Finance, onshore and offshore foreign exchange denominated issuances by the Ministry of Treasury and Finance, export rediscount credit foreign exchange repayments.

On December 22, 2022, Monetary Policy Committee decided to keep the policy rate (one-week repo auction rate) at 9%. In the summary of the Monetary Policy Committee Meeting published on December 29, 2022, it was stated that it is critically important that financial conditions remain supportive for the sustainability of structural gains in supply and investment capacity by preserving the growth momentum in industrial production and the positive trend in employment in a period of increasing uncertainties regarding global growth as well as further escalation of geopolitical risks. Accordingly, the Committee decided to keep the policy rate unchanged at that time. Considering the increasing risks regarding global demand, the Committee evaluated that the current policy rate is adequate. To create an institutional basis for sustainable price stability, the comprehensive review of the policy framework continues with the aim of encouraging permanent and strengthened liraization in all policy tools of the CBRT. The focus of this process will be on developing policy instruments to support the improvement of Turkish lira deposits, to increase Turkish lira-denominated assets in the collateral structure of OMO funding, to gradually reduce the volume of swaps, and to strengthen foreign exchange reserves.

On December 30, 2022, the CBRT published "Monetary Policy and Liraization Strategy for 2023". According to the published document, policies to be implemented under the Liraization Strategy will continue to be used in a strengthened manner to permanently increase the weight of the Turkish lira (TL) in both assets and liabilities of the banking system. Accordingly, the liraization target in deposits is set at 60% for the first half of 2023. Conditions for banks' use of funding, collateral and credit channels will be calibrated in line with the liraization targets. It also included the first payment transactions on the Digital Turkish Lira Network which were executed successfully. In 2023, the CBRT expects to expand the Digital Turkish Lira Collaboration Platform to involve selected banks and financial technology companies, and will unveil advanced phases of the pilot study with extensive participation. In TL liquidity management, the share of funding via OMO is intended to be gradually increased, and OMO will be the main component of the funding channel. The CBRT's main policy instrument will remain the one-week repo auction rate. The floating exchange rate regime will continue, and exchange rates will be determined under free market conditions according to supply and demand. Recent swap agreements signed with other central banks are intended to encourage bilateral trade through a swap-financed trade settlement facility and financial cooperation for the economic development of the respective countries.

On December 31, 2022, the CBRT issued a press release on "Macroprudential Measures" which details certain changes made in the securities maintenance and reserve requirement practices. In addition to banks, other financial institutions have also been included in the scope of the securities maintenance regulation, and at the first phase, factoring companies have been required to maintain securities according to the interest rate they apply to Turkish lira-denominated factoring receivables. The period of the implementations that stipulate banks to maintain securities according to loan interest rate and loan growth rate has been extended until December 29, 2023. The scope of assets and liabilities of banks subject to the securities maintenance practice was expanded to cover funds obtained from FX-denominated repo transactions with domestic real persons and the real sector, transactions to derecognize FX liabilities subject to the securities maintenance via engaging in financial derivative transactions with FX funders, and securities issued by the real sector and the features of which are determined by CBRT. The securities maintenance practice introduced will ensure a balanced course in FX loans in line with the decline in foreign currency funding items. The facilities of maintaining gold for Turkish lira reserve requirements were terminated as of June 23, 2023.

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On January 7, 2023, the CBRT issued an additional press release covering "Macroprudential Measures", stating that as a result of the Liraization Strategy implemented by the Central Bank, banks in general have reached the 50% liraization target in deposits announced for 2022. In its Monetary Policy and Liraization Strategy for 2023, the CBRT shared with the public that the liraization target in deposits for the first half of 2023 was set at 60%. Accordingly, the following changes were made to the securities maintenance practice effective from February 24, 2023. First, the securities maintenance ratio has been raised to 10% from 5%. Second, banks that exceed the 60% Turkish lira share target in real and legal person deposits will be subject to a discounted securities maintenance ratio. The banks for which the lower of these shares for real and legal person is: between 60% and 70% (inclusive), will receive a 5-point discount, and those with shares above 70% will receive a 7-point discount on the securities maintenance ratio. The previously determined additional ratios will continue to apply to banks with Turkish lira shares below the 60% target by adding them to the securities maintenance ratio.

On January 15, 2023, the CBRT issued an additional press release covering "Macroprudential Measures". In this release, the CBRT pointed to its statements from its Monetary Policy and Liraization Strategy for 2023 document that policies to be implemented under the Liraization strategy would continue to be used in a strengthened manner to permanently increase the weight of the Turkish lira in both assets and liabilities of the banking system. The Bank announced further steps would be taken to invigorate the attraction of TL deposits. In this context, to encourage maturity extension of TL deposits, the CBRT has decided to set reserve requirement ratios for TL deposit accounts with maturities longer than three months at zero percent. The CBRT has decided to set reserve requirement ratios at zero percent for the increase in FX liabilities with maturities longer than 6 months provided directly from abroad until the end of 2023. These changes became effective from the calculation date of January 20, 2023 with the maintenance period starting on February 3, 2023.

On January 26, 2023, the CBRT issued a press release entitled "Supporting Conversion of Firms' Foreign Exchange Obtained From Abroad Into Turkish Liras" which states that as part of its Monetary Policy and Liraization Strategy for 2023, the CBRT has decided to provide support for the conversion of firms' FX obtained from abroad into Turkish liras to support liraization in commercial activities. Accordingly, when selling their FX obtained from abroad to the CBRT, firms will be provided with FX conversion support corresponding to 2% of the amount converted into Turkish liras commitment that they will not purchase foreign exchange, more than they sold to CBRT, during the term to be determined by CBRT. After firms sell at least 40% of the FX they have brought into the country from abroad to the CBRT, they will be able to deposit the remaining part of the FX they brought from abroad into FX-protected conversion accounts, and in return for their commitment, firms will be provided with a FX conversion support of 2% of the amount converted into Turkish liras. Banks will be in charge of confirming that the FX sold to the CBRT and FX to be converted into Turkish lira deposit and participation accounts have been obtained from abroad.

On January 26, 2023, the CBRT released the first inflation report of the year. According to the report, inflation is projected to be 22.3% at the end of 2023 and sustain the downward trend by falling to 8.8% at the end of 2024 and to 5% at the end of 2025.

On January 19, 2023, the Monetary Policy Committee decided to keep the policy rate (one-week repo auction rate) constant at 9%.

On February 23, 2023, the Monetary Policy Committee (MPC) announced that it decided to reduce the policy rate (one-week repo auction rate) from 9% to 8.5%. In the summary of the Monetary Policy Committee Meeting published on March 2, 2023, it was stated that in formulating the monetary policy towards achieving the sustainable price stability objective, a liraization-oriented approach will be maintained that also addresses risks to financial stability. The CBRT will implement its Liraization strategy in order to create an institutional basis for permanent and sustainable price stability. The Committee will continue to take its decisions in a transparent, predictable and data driven framework.

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On March 6, 2023, a deposit agreement was signed between the Kingdom of Saudi Arabia and Türkiye. Under the agreement, the Kingdom of Saudi Arabia will deposit U.S.$5 billion in the CBRT through the Saudi Fund for Development.

On March 23, 2023, the Monetary Policy Committee will hold the next monetary policy meeting. The decision of the Monetary Policy Committee and a brief rationale will be announced on the CBRT website immediately after the meeting.

**BANKING SYSTEM** 

The banking system in the Republic had a capital adequacy ratio of 16.99% and a relatively low non-performing loan ratio of 2.01% as of January 2023.

As of January 2023, the loan to deposit ratio and return on average assets of the banking sector were 88.17% and 0.27%, respectively.

As of March 3, 2023, the reserve requirement ratios (RRRs) for Turkish Lira deposits/participation accounts were between 3.0% and 8.0% depending on maturity. Furthermore, as of that date, RRRs were 8.0% for Turkish Lira demand deposits, notice deposits and private current accounts, and deposits/participation accounts with maturities up to one month and three months (including 1 and 3 months). On November 27, 2020, the CBRT announced that the same reserve requirement ratios and remuneration rates will be applied to all banks. On April 15, 2022, the remuneration rate applicable to Turkish lira reserve requirements was set at 0%, and the implementation regarding the payment of additional remuneration for Turkish lira reserve requirements depending on the conversion of resident real persons' accounts was terminated. On June 30, 2022, the commission rate applied to reserve requirements that banks maintain at required reserve and FX notice deposit accounts for their FX deposit/participation fund liabilities was increased from 1.5% to 5%.

According to the decision taken by the Banking Regulatory and Supervision Agency (BRSA) on January 13, 2022, Deutsche Bank A.Ş. was authorized to provide support/advisory services to the banks and other financial institutions belonging to Deutsche Bank AG group in the following areas: convening the parties, preparation, monitoring, reporting and transmission of all kinds of information and documents related to foreign financing opportunities and transactions, and providing operational support such as giving reference prices for the transaction, providing communication support on administrative and operational issues, local legislation, compliance, tax and legal issues, and know-your-customer processes.

With its decision dated April 21, 2022, the BRSA allowed that Hayat Katılım Bankası A.Ş. was established as a digital participation bank. Hayat Katılım Bankası A.Ş. is the first bank who got the establishment license within the frame of the Regulation on the Operation Principles of Digital Banks and Service Model Banking prepared by the BRSA and entered into force on January 1, 2022.

On May 24, 2022, the BRSA amended the Regulation on Procedures and Principles for Classification of Loans and Provisions to be Set Aside. With the amendment, the threshold amount for classification of receivables as non-performing loan in discretion of banks was increased from TL 100 to TL 2,500. The threshold amount will be applied as TL 500 for consumer loans. The amounts in question will be increased in January every year by the rate of increase in the annual producer price index announced by the TURKSTAT.

According to the decisions taken by BRSA dated June 24, 2022 and October 21, 2022, if: (i) a company (other than a bank or a financial institution) is subject to independent audit; and (ii) it holds FX cash assets (including gold, effective FX currency, and FX denominated securities but excluding FX denominated securities issued by the Republic) in an amount exceeding: (A) the cash equivalent of TL 10 million; and (B) 5% of the greater amount of the total assets of the company or the company's net sales revenue for the last year; such company will be subject to TL credit restrictions. Companies' foreign subsidiaries and affiliates will not be

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included in calculation of threshold amount. These restrictions will also apply to credits extended by factoring and leasing companies. Companies that are not allowed to borrow foreign currency credit due to the legislation and that have a foreign currency net position deficit within three consecutive months following the date of the credit application will be exempted. However, aforementioned companies' deficit position must be determined and their financial statements must be prepared by authorized independent audit firms or by certified public accountants.

With its decision dated July 7, 2022, the BRSA allowed Kasa Katılım Bankası A.Ş. to be established as a digital participation bank with TL 1,500,000,000 share capital.

With its decision dated August 4, 2022, the BRSA allowed T.O.M. Katılım Bankası A.Ş. to be established as a digital participation bank with TL 1,500,000,000 share capital.

With its decision dated September 28, 2022, the BRSA allowed FUPS Bank A.Ş. to be established as a digital deposit bank.

With its decision dated October 12, 2022, the BRSA allowed Q Yatırım Bankası A.Ş. to be established as an investment bank.

With its decision dated December 15, 2022, Inveo Yatırım Bankası A.Ş. obtained an operating license from the BRSA.

According to the Saving Deposit Insurance Fund, Funds Board Resolution dated December 15, 2022, as published in the Official Gazette dated December 22, 2022, and numbered 32051, taking into account the revaluation rate of the Tax Procedure Law for 2023, the amount of insured deposits and participation funds by the Savings Deposit Insurance Fund, which is currently TL 200 thousand, has been determined as TL 400 thousand, to be effective from the beginning of the 2023 calendar year.

With its decision dated December 29, 2022, Şeker Finansman A.Ş.'s operating license was revoked by Banking Regulatory and Supervision Agency upon its own request.

With its decision dated December 29, 2022, TT Finansman A.Ş. obtained operating license from the Banking Regulatory and Supervision Agency.

Following the earthquakes that happened on February 6, 2023, the BRSA took new decisions, in order to reduce the negative effects of the disaster. Accordingly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pursuant to the BRSA Decision dated February 7, 2023, numbered 10503:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The maturities of the new loans to be provided to the persons residing in the affected regions or restructurings
for the same customers, can be determined by the banks without limitations set out in the Regulation on Loan Transactions of Banks and relevant BRSA decisions. Same rule applies to the financial lease, factoring and financing companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the credit card transactions on sales of goods and services in the affected regions, credit card instalment
terms as determined by the BRSA, shall be doubled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pursuant to the BRSA Decision dated February 10, 2023, numbered 10507:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The minimum payment amount was determined as 20 percent of the term debt, without being associated with any
limit. The issue regarding the use of cash, the closing and cancellation of the credit cards for which the minimum amount has not been paid until the debt is fully paid were left to the discretion of the banks. Banks were allowed to define grace
periods by not demanding their receivables, including the minimum amount, during the postponement of their card debts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The total limit of credit cards that can be obtained by real persons in case the monthly or annual average income
level cannot be determined has been increased from TL 2000 to TL 5000.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In case the principal and interest payments of consumer and vehicle loans extended by banks, financial leasing,
factoring and financing companies are postponed upon the request of customers, it was decided not to consider the postponement period within the maturity limits determined in the relevant legislation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Upon the request of the customers, the principal and interest payments will be postponed for a minimum of 6
months, and the customer's request will not be sought if the postponement is made without demanding interest/profit share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pursuant to the BRSA Decision dated February 14, 2023, numbered 10508:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Publicly traded banks' repurchase of their own shares on the Borsa İstanbul A.Ş. Equity Market
after February 6, 2023, will not to be taken into account as a discount item from the core capital in the application of subparagraph (a1) of the fourth paragraph of Article 9 of the Regulation on Banks' Equity, and will not to be included
in the calculation of the amount subject to credit risk and amount subject to market risk in the application of the Regulation on Measurement and Evaluation of Capital Adequacy of Banks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pursuant to the BRSA Decision dated February 23, 2023, numbered 10524:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The BRSA Decision dated February 7, 2023, numbered 10503, the BRSA Decision dated February 10, 2023,
numbered 10507 and the BRSA Decision dated February 14, 2023, numbered 10508 shall be applied in the areas that are designated as "Disaster Area Affecting General Life" pursuant to the "Regulation on the Fundamental Rules
Regarding the Effectiveness of Disasters in General Life".

Until January 1, 2024, high risk weighs in relation to; (i) customer credit cards and customer loans for individuals affected from the earthquake within the scope of the BRSA decision dated July 1, 2021 and (ii) commercial cash loans within the scope the BRSA decisions dated April 28, 2022 and October 21, 2022 shall not apply for those provided to clients affected from the earthquake, after February 6, 2023.

On February 24, 2023, pursuant to article 12/A of "Regulation on Loan Transactions of Banks", BRSA decided the ratio of the loan amount to the value of the house taken as collateral as follows:

**Maximum Loan Amount That Can Be Used for The Purchasing of New Build Housing** 

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| | | | |
|:---|:---|:---|:---|
| **Housing Value** | **Energy Efficiency Class** | **Energy Efficiency Class** | **Energy Efficiency Class** |
|  | **A** | **B** | **Other** |
|  Housing Value ≤ 5 million TL | Value x %90 | Value x %85 | Value x %80 |
|  5 million TL < Housing Value ≤ 10 million TL | Value x %80 | Value x %75 | Value x %70 |
|  10 million TL | Value x %70 | Value x %65 | Value x %60 |
|  20 million TL< Housing Value | Value x %60 | Value x %55 | Value x %50 |

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 **Maximum Loan Amount That Can Be Used for The Purchasing of Second Hand Housing and Mortgage Loans**<br>

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| | | | |
|:---|:---|:---|:---|
| **Housing Value** | **Energy Efficiency Class** | **Energy Efficiency Class** | **Energy Efficiency Class** |
|  | **A** | **B** | **Other** |
|  Housing Value ≤ 1 million TL | Value x %90 | Value x %90 | Value x %90 |
|  1 million TL < Housing Value ≤ 2 million TL | Value x %70 | Value x %65 | Value x %60 |
|  2 million TL < Housing Value ≤ 5 million TL | Value x %60 | Value x %55 | Value x %50 |
|  5 million TL < Housing Value ≤ 10 million TL | Max. 3 million TL | Max. 2,75 million TL | Max. 2,5 million TL |
|  10 million TL< Housing Value | Value x %0 | Value x %0 | Value x %0 |

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Also, the loans in which is the scope of the new housing finance program, "My New Home" shall not be subject to this decision.

**PUBLIC FINANCE AND BUDGET** 

In 2022, the Central Government consolidated budget expenditures were TL 2.9 trillion (compared to TL 1.6 trillion in 2021), the Central Government consolidated budget revenues were approximately TL 2.8 trillion (compared to TL 1.4 trillion in 2021), the Central Government consolidated budget deficit was approximately TL 139.07 billion (compared to a deficit of approximately TL 201.51 billion in 2021), and the Central Government consolidated budget primary surplus was approximately TL 171.84 billion (compared to a deficit of approximately TL 20.66 billion during the same period of 2021). In January 2023, the Central Government consolidated budget expenditures were TL 321.3 billion (compared to approximately TL 146.0 billion during the same month of 2022), the Central Government consolidated budget revenues were approximately TL 289.1 billion (compared to TL 176.0 billion during the same month of 2022), the Central Government consolidated budget deficit was TL 32.2 billion (compared to a surplus of TL 30.0 billion during the same month of 2022), and the Central Government consolidated budget primary deficit was approximately TL 10.9 billion (compared to a surplus of approximately TL 44.3 billion during the same month of 2022). A Central Government budget deficit to GDP ratio of 3.4% for 2022 and 3.5% for 2023, and 2.5% for 2024 are expected through the 2023-2025 Medium Term Program that was announced on September 4, 2022. At the end of the program period, the ratio of budget deficit to GDP is targeted to be 1.5%.

The following table sets forth the details of the Central Government budget for the periods indicated:

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| | | | |
|:---|:---|:---|:---|
| **Central Government Budget (million TL)** | **2021** | **2022** | **January 2023** |
|  **Budget Expenditures** | **1603545** | **2941420** | **321320** |
|  **1-Excluding Interest** | **1422693** | **2630517** | **299961** |
|  Compensation of Employees | 346279 | 615278 | 103240 |
|  Social Security Contributions | 57380 | 96842 | 15520 |
|  Purchase of Goods and Services | 133455 | 257076 | 19826 |
|  Current Transfers | 626828 | 1126152 | 146381 |
|  Capital Expenditures | 131282 | 276403 | 9884 |
|  Capital Transfers | 25492 | 48822 | 7 |
|  Lending | 101978 | 209944 | 5103 |
|  **2-Interest** | **180852** | **310903** | **21359** |
|  **Budget Revenues** | **1402038** | **2802355** | **289078** |
|  **1-General Budget Revenues** | **1364107** | **2740573** | **280361** |
|  Taxes | 1164988 | 2353286 | 252826 |
|  Property Income | 55543 | 104675 | 5176 |
|  Grants and Aids and Special Revenues | 11293 | 30859 | 786 |
|  Interest, Shares and Fines | 122107 | 236810 | 20539 |
|  Capital Revenues | 8814 | 12361 | 547 |
|  Collections from Loans | 1362 | 2583 | 488 |
|  **2-Special Budget Institutions** | **28958** | **48936** | **5669** |
|  **3-Regularity & Supervisory Institutions** | **8972** | **12847** | **3048** |
|  **Budget Balance** | **-201507** | **-139065** | **-32243** |
|  **Balance Excluding Interest** | **-20655** | **171838** | **-10883** |

---

*Source*: Ministry of Treasury and Finance

According to Presidential Decree No. 4970, dated December 24, 2021, and Presidential Decree No. 5193, dated February 13, 2022, and Presidential Decree No. 5752 dated June 27, 2022, no withholding tax will be applied to the foreign currency protected TL depository accounts and participation accounts. In addition, no withholding tax will be applied to the TL depository accounts and participation accounts opened for foreign exchange funds transferred from abroad by non-resident citizens in the scope of YUVAM mechanism.

------

According to Presidential Decree No. 5046, dated December 30, 2021, and Presidential Decree No. 5193, dated February 13, 2022 and Presidential Decree No. 5752 dated June 27, 2022, no withholding tax will be applied to TL depository accounts converted from gold deposit accounts, and TL participation accounts converted from gold denominated participation accounts.

On February 12, 2022, the Government announced that the value added tax on basic food products will be decreased from 8% to 1%. The relevant Presidential Decree numbered 5189 was published in the Official Gazette dated February 13, 2022.

According to Presidential Decree No. 6618, dated December 28, 2022, the temporary period of reduced withholding tax levels on Turkish Lira-denominated bank deposits and participation funds opened or renewed since April 4, 2022, which is 0% for maturities more than one year, 3% for maturities up to one year and 5% for maturities up to six months, was extended until June 30, 2023. With the same Presidential Decree, the temporary period of reduced withholding tax levels on income and earnings from bonds and bills issued by banks, lease certificates issued by asset leasing companies for which the fund user is a bank, and investment funds was also extended to until June 30, 2023.

On April 15, 2022, Law No. 7394 on Certain Amendments to the Law on Utilization of Immovable Properties Belonging to the Treasury and Certain Amendments to Value Added Tax Law and to Certain Laws and Statutory Decrees was published in the Official Gazette. Under this law, the corporate income tax rate was increased to 25% for banks, companies within the scope of Law No. 6361 on Financial Leasing, Factoring, Financing, and Saving Financing Companies, electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reinsurance companies, and pension companies for the tax period starting from January 1, 2022. This law also introduced a VAT exemption for the goods and service deliveries for construction works within the scope of the investment incentive certificates related to the manufacturing industry and tourism until December 31, 2025. In addition, the required one-year holding period for VAT exemption related to resident or workplace purchases by non-residents was changed to three years.

With the "Law on Amending Tax Procedural Law and Corporation Tax Law" numbered 7352 and published in the Official Gazette dated January 29, 2022, and the "Law on Amending Banking Law, Some Other Laws and Statutory Decree numbered 655" numbered 7407 and published in the Official Gazette dated May 28, 2022, certain tax regulations regarding corporate taxation were made for the legal entities benefiting from the FX Protected TL Depository Communique and Communique on Supporting the Conversion of Gold Deposits to Turkish Lira Depository and Participation Accounts, such benefits are later extended to December 31, 2023 by the Law No. 7420.

On December 16, 2022, Law No. 7427 on the Central Government Budget Law (2023) and its subsidiaries was published in the Official Gazette. Total budget revenue for 2023 is estimated as approximately TL 4.2 trillion, while the budget spending for 2023 is estimated as approximately TL 4.8 trillion.

On December 30, 2022, Income Tax General Communique (Serial Number: 323) was published in the Official Gazette numbered 32059 (bis 2). According to Income Tax General Communique in question, the first bracket of personal income tax was raised to TL 70,000 from TL 32,000, second bracket was raised to TL 150,000 from TL 70,000, third bracket was raised to TL 550,000 from TL 250,000, and fourth bracket was raised to TL 1.9 million from TL 880,000. Türkiye imposes a 15% income tax for first bracket, 20% for second bracket, 27% for third bracket, 35% for fourth bracket and 40% for higher incomes.

------

Following the earthquakes on February 6, 2023, the Ministry of Treasury and Finance announced on February 7, 2023 and on February 21, 2023, that a state of force majeure has been declared until July 31, 2023 for taxpayers located in the earthquake zone. As of the date of the earthquake, the tax obligations of the taxpayers in the earthquake zone until July 31, 2023 have been postponed. The Ministry of Treasury of Finance further announced on February 19, 2023 that for the taxpayers in affected region; (i) motor vehicles tax will benefit from the above postponement, (ii) tax declarations for the first temporary tax period shall not be requested, (iii) tax liabilities can be restructured without interest or penalty up to 24 months term. In addition, all in-kind or cash donations made to aid campaigns initiated by the Presidency can be considered as a discount in the determination of the tax bases of the relevant year.

On February 23, 2023, pursuant to the Law No. 7256 and Law No. 7326, the Presidential Decision on Restructuring of Some Claims (numbered 6831) was published in the Official Gazette. According to the decision, public debt of the people in the earthquake zone for whom a state of force majeure has been declared was restructured.

On March 2, 2023, Communique on Value Added Tax (numbered 70) was published by the Ministry of Treasury and Finance Revenue Administration. According to the Communique, export periods for export-registered deliveries goods were extended in places where the state of Force Majeure was declared due to the earthquakes in February 2023 pursuant to the article 11/1-c of Value Added Tax Law (numbered 3065).

The Law on the Amendment to the Social Security and General Health Insurance Law and the Statutory Decree-Law No. 375 ("Law No. 7438"), which eliminates the age requirement for retirement and offers early retirement to millions of citizens was published in the Official Gazette dated March 3, 2023.

**PRIVATIZATION** 

The privatization implementations of Türkiye amounted to approximately U.S.$504.2 million in 2022 and approximately U.S.$63.61 million as of March 2, 2023.

Total privatization proceeds realized by the Turkish Privatization Administration since 1986 amounted to U.S.$71.36 billion as of March 2, 2023.

**DEBT** 

In January 2023, the average maturity of the Republic's domestic cash borrowing was 73.3 months, as compared to 52.6 months in January 2022. The average annual interest rate on domestic cash borrowing (including discounted treasury bills/government bonds) on a compounded basis was 10.83% in January 2023, compared to 16.60% in January 2022.

The total gross outstanding external debt of the Republic was approximately U.S.$442,858 million (at then-current exchange rates) at the end of the third quarter of 2022.

The following table summarizes the gross external debt profile of the Republic (at period end):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Gross External Debt Profile** *(in millions of U.S. Dollars)* | **2021<br>Q4** | **2022<br>Q1** | **2022<br>Q2** | **2022<br>Q3** |
|  GROSS EXTERNAL DEBT | 442454 | 450434 | 445471 | 442858 |
|  SHORT-TERM | 121560 | 131271 | 135682 | 139926 |
|  Public Sector | 22219 | 24848 | 24846 | 26038 |
|  Central Bank | 26052 | 29812 | 29428 | 31975 |
|  Private Sector | 73289 | 76611 | 81408 | 81913 |
|  LONG-TERM | 320894 | 319163 | 309789 | 302932 |
|  Public Sector | 158130 | 158445 | 154713 | 147808 |
|  Central Bank | 0 | 0 | 0 | 0 |
|  Private Sector | 162764 | 160718 | 155076 | 155124 |

---

*Source*: Ministry of Treasury and Finance

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The Republic's EU-defined general government gross debt to GDP ratio was 34.8% in the third quarter of 2022. The Republic also maintains a large cash balance to cover its financing needs. As of March 7, 2023, the Republic's cash account with the CBRT stood at approximately TL 334.9 billion. As of year-end 2022, it was TL 374.4 billion.

Since 2003, the Republic's strategic benchmarking policy, together with high growth rates and prudent fiscal policies, has helped to mitigate the risk exposure of its debt portfolio. For 2023, the Republic's primary pillars of borrowing strategies are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to borrow mainly in TL and to decrease the share of domestic debt stock denominated in foreign currencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to borrow in foreign currencies besides the U.S. dollar in international markets for market diversification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to keep the share of debt maturing within 12 months and the share of debt stock with interest rate refixing
period of less than 12 months at a certain level, by taking into account appropriate instrument and maturity composition to optimize interest payments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to keep a strong level of cash reserves in order to reduce the liquidity risk associated with cash and debt
management.

The Republic prepares its domestic and external borrowing programs by factoring in these strategies. By implementing a strategic benchmarking policy, the sensitivity of Ministry of Treasury and Finance's debt portfolio to risks associated with foreign exchange, interest rate and liquidity have been significantly reduced. The Republic has also strengthened its debt sustainability.

**SUMMARY OF KEY ECONOMIC INDICATORS** 

The following table summarizes the key economic indicators of Türkiye for the periods indicated:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2017** | **2018** | **2019** | **2020** | **2021** | **2022** |  | **2023** |  |
|  Nominal GDP (in billions of TL) | 3134 | 3759 | 4312 | 5048 | 7249 | 15007 |  |  |  |
|  Real GDP Growth (%) | 7.5 | 3.0 | 0.8 | 1.9 | 11.4 | 5.6 | <sup>\*\*\*\*</sup> |  |  |
|  Seasonally Adjusted Unemployment (%) | 10.9 | 11.0 | 13.7 | 13.1 | 12.0 | 10.3 | <sup>\*\*\*</sup> |  |  |
|  Consumer Price Index (%) | 11.92 | 20.30 | 11.84 | 14.60 | 36.08 | 64.27 |  | 55.18 | <sup>\*\*\*\*\*\*</sup> |
|  Domestic Producer Price Index (%) | 15.47 | 33.64 | 7.36 | 25.15 | 79.89 | 97.72 | <sup>\*\*\*\*</sup> | 76.61 | <sup>\*\*\*\*\*\*</sup> |
|  Current Account Balance (in millions of U.S.$) | -39555 | -20151 | 10796 | -31888 | -7232 | -48769 | <sup>\*\*\*\*</sup> |  |  |
|  Central Government External Debt Stock (in millions of U.S.$) | 90241 | 91245 | 96443 | 102317 | 109732 | 113601 | <sup>\*\*\*</sup> | 116849 | <sup>\*\*\*\*\*</sup> |
|  Public Sector Borrowing Requirement/GDP (%) | 1.8 | 2.4 | 3.3 | 3.9 | 2.5 | 6.4 | <sup>\*</sup> |  |  |

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<sup>\*</sup> 2023-2025 Medium Term Program realization estimate.

<sup>\*\*</sup> As of September 2022.

<sup>\*\*\*</sup> As of December 2022.

<sup>\*\*\*\*</sup> As of the end of 2022.

<sup>\*\*\*\*\*</sup> As of January 2023.

<sup>\*\*\*\*\*\*</sup> As of February 2023.

*Sources*: TURKSTAT, CBRT, Ministry of Treasury and Finance

From January 2, 2023 to March 7, 2023, the Istanbul Stock Exchange National 100 Index decreased by 4.93%.

## Ex-99.N

**Exhibit N** 

REPUBLIC OF TÜRKİYE

MINISTRY OF TREASURY AND FINANCE

Chief Legal Advisory and Directorate General of Trials

The Republic of Türkiye

Ministry of Treasury and Finance

Ankara/ TÜRKİYE

March 14, 2023

Re: The Republic of Türkiye

<u>Registration Statement No.</u> <u>333-236683</u>

Ladies and Gentlemen:

I, Chief Legal Advisor and Director General of Trials, Ministry of Treasury and Finance, the Republic of Türkiye, have reviewed the above-referenced Registration Statement (the "Registration Statement"), the Prospectus dated May 6, 2020 (the "Prospectus"), the Prospectus Supplement dated March 8, 2023, as amended and supplemented by Supplement No. 1 to the Prospectus Supplement, dated March 13, 2023 (the "Prospectus Supplement"), the Fiscal Agency Agreement dated as of March 23, 2015, as amended by Amendment No. 1 dated March 15, 2017, between the Republic of Türkiye (the "Republic") and The Bank of New York Mellon (the "Fiscal Agency Agreement"), and the Underwriting Agreement dated as of March 8, 2023 (the "Underwriting Agreement") by and among the Republic, Deutsche Bank AG, London Branch, HSBC Bank plc, and J.P. Morgan Securities plc, pursuant to which the Republic has issued and offered for sale 9.375% notes due March 14, 2029 in the aggregate principal amount of U.S.$2,250,000,000 (the "Notes").

The issuance of the Notes has been authorized pursuant to the provisions of Articles 4 and 7 of the Law Regarding the Regulation of Public Finance and Debt Management of the Republic (Law No. 4749).

It is my opinion that the Notes have been duly authorized and when duly executed and delivered by the Republic, authenticated in accordance with the Fiscal Agency Agreement and delivered by and paid for in accordance with the terms of the Underwriting Agreement, will constitute valid and legally binding obligations of the Republic under and with respect to the present laws of the Republic.

I consent to the filing of this opinion as an exhibit to the Annual Report of the Republic of Türkiye on Form 18-K and to the use of my name and the making of statements with respect to me which are set forth under the caption "Validity of the Securities" in the Prospectus forming a part of the Registration Statement, and appearing under the caption "Legal Matters" in the Prospectus Supplement forming a part of the Registration Statement.

[Signature Page Follows]

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| |
|:---|
| Very truly yours, |
| /s/ Hakan GÜZEL |
| Hakan GÜZEL |
| Chief Legal Advisor and Director General of Trials |
| Legal Advisor |
| Ministry of Treasury and Finance |
| The Republic of Türkiye |

---

*[Signature Page to the Turkish Validity Opinion]*

## Ex-99.O

**Exhibit O**![LOGO](g484641dsp41.jpg)

March 14, 2023

Republic of Türkiye

Ministry of Treasury and Finance

General Directorate of Debt Office

Saray Mah. Dr. Adnan Büyükdeniz Cad.

No:8 Kat 5, Ümraniye

İstanbul 34768 Türkiye

Ladies and Gentlemen:

We have acted as special United States counsel for the Republic of Türkiye (the "Republic") in connection with the issuance and offering for sale (the "Offering") of U.S.$2,250,000,000 principal amount of the Republic's 9.375% notes due March 14, 2029 (the "Notes") in the form of a takedown from the Republic's Registration Statement No. 333-236683 under Schedule B (the "Registration Statement"). In connection with the Offering we have reviewed the Registration Statement, the Prospectus dated May 6, 2020 (the "Prospectus"), the Prospectus Supplement dated March 8, 2023, as amended and supplemented by Supplement No. 1 to the Prospectus Supplement dated March 13, 2023 (the "Prospectus Supplement"), the Fiscal Agency Agreement dated as of March 23, 2015, between the Republic and The Bank of New York Mellon, as amended by Amendment No. 1 dated March 15, 2017 (the "Fiscal Agency Agreement"), and the Underwriting Agreement, dated as of March 8, 2023 (the "Underwriting Agreement"), by and among the Republic and Deutsche Bank AG, London Branch, HSBC Bank plc, and J.P. Morgan Securities plc.

It is our opinion that, assuming due authorization, execution and delivery by the Republic, the Notes, when duly authenticated in accordance with the terms of the Fiscal Agency Agreement and delivered and paid for in accordance with the terms of the Underwriting Agreement, will constitute valid and binding obligations of the Republic under the laws of the State of New York.

Insofar as the opinion set forth herein relates to matters of the law of the Republic, we have relied upon the opinion of the Chief Legal Advisor and Director General of Trials, Ministry of Treasury and Finance, Republic of Türkiye, dated of even date herewith, and our opinion herein is subject to any and all exceptions and reservations set forth therein.

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| | |
|:---|:---|
| ![LOGO](g484641dsp41a.jpg) | **Arnold & Porter Kaye Scholer LLP**<br> 250 West 55th Street **\|** New York, NY 10019-9710 **\| www.arnoldporter.com** |

---

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![LOGO](g484641dsp42.jpg)

Republic of Türkiye

March 14, 2023

We consent to the filing of this opinion as an exhibit to the Annual Report of the Republic of Türkiye on Form 18-K and to the references to our firm appearing under the caption "Validity of the Securities" in the Prospectus forming a part of the Registration Statement, and appearing under the caption "Legal Matters" in the Prospectus Supplement forming a part of the Registration Statement. In giving this consent, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the United States Securities and Exchange Commission.

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| |
|:---|
| Very truly yours, |
| /s/ Arnold & Porter Kaye Scholer LLP |

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## Ex-99.P

**Exhibit P** 

**The Republic of Türkiye** 

**Underwriting Agreement** 

Deutsche Bank AG, London Branch

Winchester House

1 Great Winchester Street

London EC2N 2DB

United Kingdom

HSBC Bank plc

8 Canada Square

London E14 5HQ

United Kingdom

J.P. Morgan Securities plc

25 Bank Street

Canary Wharf

London E14 5JP

United Kingdom

Ladies and Gentlemen:

The Republic of Türkiye ("**The Republic**" or the "**State**") acting by and through its Minister of Treasury and Finance, proposes to sell to the underwriters named in Schedule II hereto (the "**Underwriters**"), for whom you (the "**Representatives**") are acting as representatives, the principal amount of its securities identified in Schedule I hereto (the "**Securities**"), to be issued under a fiscal agency agreement identified in Schedule I hereto (the "**Fiscal Agency Agreement**") between The Republic and the fiscal agent identified in Schedule I hereto (the "**Fiscal Agent**"). If the firm or firms listed in Schedule II hereto include only the firm or firms listed in Schedule I hereto, then the terms "Underwriters" and "Representatives", as used herein, shall each be deemed to refer to such firm or firms.

1. <u>Representations and Warranties</u>. The Republic represents and warrants to, and agrees with, each
Underwriter as set forth below in this Section 1. Certain terms used in this Agreement are defined in paragraph (r) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Republic meets the requirements for use of Schedule B under the Securities Act of 1933 (the
" **Act** "), is a "seasoned foreign government" within the meaning of the Release and has filed with the Securities and Exchange Commission (the "**Commission**") a registration statement (the file number of which
is set forth in Schedule I hereto), including a form of Base Prospectus, for registration under the Act of the offering and sale of the Securities. The Republic may have filed with the Commission one or more amendments to such registration
statement, and may have used a Preliminary Prospectus, each of which has previously been furnished to the Representatives. Such registration statement, as so amended, initially became effective on May 6, 2020. At the time and to the extent
required under the Act, The Republic will file a new shelf registration statement relating to the Securities, in a form satisfactory to the Representatives, will use its best efforts to cause such registration statement to be declared effective
within 180 days of filing, and will take all other action necessary or appropriate to permit the public offering and sale of the Securities, including any Securities that remain unsold by the Underwriters, to continue as contemplated in the
registration statement relating to such Securities.

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(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At the earliest time after the filing of the Registration Statement that The Republic or another offering
participant made a bona fide offer (within the meaning of Rule 164(h)(2)) of the Securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) at the date hereof, The Republic was not and is not an "ineligible issuer," as defined in Rule 405,
without taking into account any determination by the Commission pursuant to Rule 405 that it is not necessary that The Republic be considered an "ineligible issuer." Although the Base Prospectus may not include all the information with
respect to the Securities and the offering thereof required by the Act and the rules thereunder to be included in the Final Prospectus, the Base Prospectus includes all such information required by the Act and the rules thereunder as applicable
pursuant to the Release to be included therein as of the Effective Date. The Republic will hereafter file with the Commission pursuant to the Release and Rule 415 and 424(b)(2) or (5) either (x) a final supplement to the Base Prospectus, or
(y) an amendment to such registration statement, including such final prospectus supplement. In the case of clause (x), The Republic has included in such registration statement, as amended at the most recent Effective Date, the information
required for making such a filing pursuant to the Release. As filed, such final prospectus supplement or such amendment and final prospectus supplement shall include all such required information with respect to the Securities and the offering
thereof and, except to the extent the Representatives shall agree in writing to any modification thereof, shall be in all substantive respects in the form furnished to the Representatives prior to the Execution Time or, to the extent not completed
at the Execution Time, shall be in such form with only such specific additional information and other changes (beyond that contained in the Base Prospectus and any Preliminary Prospectus) as The Republic has advised the Representatives, prior to the
Execution Time, will be included or made therein and to which the Representatives shall have agreed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the Effective Date, the Registration Statement did or will, and, when the Final Prospectus is first filed
(if required) in accordance with Rule 424(b) and on the Closing Date, the Final Prospectus (as supplemented in the case of the Closing Date) will, comply in all material respects with the applicable requirements of the Act, the rules thereunder and
the Release; on the Effective Date, the Registration Statement did not or will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein
not misleading; and, on the Effective Date, the Final Prospectus, if not filed pursuant to Rule 424(b), did not or will not, and, on the date of any filing

------

pursuant to Rule 424(b) and on the Closing Date, the Final Prospectus (as supplemented in the case of the Closing Date) will not, include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; as of the Applicable Time, neither (i) the Republic General Free Writing Prospectus(es) issued at or prior to the Applicable Time, the Statutory Prospectus and the pricing term sheet attached as Schedule IV hereto, together with the expected ratings of the Securities set forth in the pricing term sheet filed with the Commission on the date hereof, with an effective filing date of March 8, 2023 all considered together (collectively, the "**General Disclosure Package**"), nor (ii) any individual Republic Limited-Use Free Writing Prospectus, when considered together with the General Disclosure Package, included any untrue statement of a material fact or omitted to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading provided, however, that The Republic makes no representations or warranties as to the information contained in or omitted from the Registration Statement or the Final Prospectus (or any supplement thereto) in reliance upon and in conformity with information furnished in writing to The Republic by or on behalf of any Underwriter through the Representatives specifically for inclusion in the Registration Statement or the Final Prospectus (or any supplement thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Republic Free Writing Prospectus, as of its issue date and at all subsequent times through the completion
of the public offer and sale of the Securities or until any earlier date that The Republic notified or notifies the Representatives as described in the next sentence, did not, does not and will not include any information that conflicted, conflicts
or will conflict with the information contained in the Registration Statement, including any document incorporated by reference therein and any prospectus supplement deemed to be a part thereof that has not been superseded or modified. If at any
time following issuance of a Republic Free Writing Prospectus there occurred or occurs an event or development as a result of which such Republic Free Writing Prospectus conflicted or would conflict with the information contained in the Registration
Statement or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing at that subsequent time,
not misleading, The Republic has promptly notified or will promptly notify the Representatives and has promptly amended or will promptly amend or supplement, as its own expense, such Republic Free Writing Prospectus to eliminate or correct such
conflict, untrue statement or omission; <u>provided</u>, <u>however</u>, that The Republic makes no representations or warranties as to the information contained in or omitted from any Republic Free Writing Prospectus based upon and in conformity
with written information furnished to the Republic by or on behalf of any Underwriter through the Representatives specifically for inclusion in such Republic Free Writing Prospectus.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The issuance and sale of the Securities have been duly authorized, and when duly executed, authenticated,
issued and delivered as provided in the Fiscal Agency Agreement and paid for in accordance with the terms hereof, will be duly and validly issued and outstanding, and will constitute valid and binding obligations of The Republic for the payment and
performance of which the full faith and credit of The Republic will be pledged; the Securities will constitute direct, general, unconditional and unsubordinated public External Indebtedness (as defined in the Securities) of The Republic for which
the full faith and credit of the Republic is pledged. The Securities rank and will rank without any preference among themselves and equally with all other unsubordinated public External Indebtedness of the republic. It is understood that this
provision shall not be construed so as to require the Republic to make payment under the Securities ratably with payments being made under any other public External Indebtedness; and the Securities, when issued and delivered, will conform to the
description thereof contained in the Final Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Republic is a member of the International Monetary Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All necessary action by or on behalf of The Republic has been taken and any necessary authorizations, approvals
or consents required under the laws of The Republic have been or will, by the Closing Date, be duly obtained, and are or will, by the Closing Date, be in full force and effect, for the authorization, execution and delivery of this Agreement, the
Fiscal Agency Agreement, the distribution of any prospectus or other offering materials and for the issuance and sale of Securities by The Republic under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The obligations of The Republic under this Agreement, the Fiscal Agency Agreement and the Securities are legal
and valid obligations binding on The Republic in accordance with their respective terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The issuance and sale of the Securities and the execution, delivery and performance of this Agreement, the
Fiscal Agency Agreement and the Securities by The Republic do not and will not (i) violate any treaty, convention, law, decree, regulation, communiqué, ordinance or similar enactment that applies to The Republic or any of The
Republic's property or (ii) violate any decision or judgment of any court or other tribunal or regulatory authority or any arbitral award in each case binding on The Republic or any of The Republic's properties or (iii) violate
or contravene, conflict with or result in a breach of any existing agreement or other instrument to which The Republic is a party or which is binding on The Republic or any of The Republic's properties or (iv) result in the creation or
imposition of any lien upon any of the present or future revenues or assets of The Republic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) No litigation or administrative proceeding is pending or, to its knowledge, threatened against or affecting it
(i) in which there is a reasonable possibility of an adverse decision which would materially affect its ability to perform its obligations in respect of this Agreement, the Fiscal Agency Agreement or the Securities or (ii) which questions
the legality, validity or binding effect of any material provision of this Agreement, the Fiscal Agency Agreement or the Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Article 30 of the Corporation Tax Law of The Republic (Law No. 5520) (the "**Corporation Tax Law**") requires The Republic to withhold 15% (fifteen percent) withholding tax from the interest on the Securities received by limited tax liability persons, being legal entities resident outside The Republic. Article 94 of the Income Tax
Law (Law No. 193) (the "**Income Tax Law**") requires The Republic to withhold 25% (twenty-five percent) withholding tax from the interest on the Securities received by limited tax liability persons, being individuals resident
outside the Republic. However, according to Temporary Article 67 of the Income Tax Law, as a result of the decrees of the Council of Ministers of The Republic (Decree Nos. 2009/14593 and 2009/14592) as currently in effect, such Turkish withholding
taxes have been reduced to 0%. Furthermore, according to Article 15(b) of the Law Regarding the Regulation of Public Finance and Debt Management (Law No. 4749) (the "**Law No. 4749** "), the principal amount of
the Securities and the interest thereon on each interest payment date shall be considered part of the consolidated debt of the State and as a result shall be exempt from any and all Turkish taxes, including withholding tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Republic and its affiliated purchasers (as defined in Regulation M under the Securities Exchange Act of
1934, as amended ()"**Regulation M** ")) (other than the Representatives, as to which The Republic makes no representation), have not taken and will not take, directly or indirectly, any action prohibited by Regulation M.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Under the laws of Türkiye, The Republic is subject to civil and commercial law with respect to its
obligations under the Securities, this Agreement, and the Fiscal Agency Agreement and the issue, sale and delivery of the Securities and the execution, delivery and performance by The Republic of its obligations under this Agreement, the Fiscal
Agency Agreement and the Securities constitute, and The Republic's exercise of its rights and performance of any and all of its payment obligations here or thereunder will constitute, private and commercial acts rather than governmental or
public acts. The Republic hereby irrevocably waives, to the fullest extent permitted by law, with respect to any of its property, any right of immunity (sovereign or otherwise) from the jurisdiction of courts, suit, execution upon a judgment, from
attachment prior to judgment or in aid of execution upon a judgment or any other legal process with respect to its obligations under this Agreement, the Fiscal Agency Agreement or the Securities, and such waiver is effective and fully enforceable
under the laws of The Republic, except that under the laws of The Republic, assets of The Republic are immune from attachment or other forms of execution, whether before or after judgment. Notwithstanding the foregoing, no such waiver of immunity
shall be interpreted to include actions brought under the United States federal securities laws or any securities laws of any state of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Securities are backed by the full faith and credit of The Republic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Republic is a "foreign government" within the meaning of Rule 3b-4 under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Neither The Republic, nor any person acting on its behalf (other than the Underwriters, as to whom The Republic
makes no representation) has engaged or will engage in any directed selling efforts, within the meaning of Rule 902(c)(1) of Regulation S under the Securities Act, with respect to the Securities that are not registered by The Republic under the
registration statement referred to in subsection 1(a) above.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) (i) Neither the Republic nor, to the best of The Republic's knowledge and belief, any official or agent of
The Republic is an individual or entity ()"**Person**") currently the subject or target of any sanctions administered or enforced by the United States Government (including, without limitation, by the U.S. Department of the
Treasury's Office of Foreign Assets Control, the U.S. Department of Commerce, the U.S. Department of State), the United Nations Security Council, the European Union, the United Kingdom, or other relevant sanctions authority (collectively,
" **Sanctions** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Issuer will not directly or indirectly use the proceeds of the sale of the Securities, or lend, contribute or otherwise make available such proceeds to any other Person, (a) to fund any activities of or business with any Person, or in any country or territory, that, at the time of such funding, is the subject of Sanctions or (b) in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions; provided that the undertakings in (i) and (ii) are only sought and given to the extent that to do so does not result in any violation of (A) Regulation (EC) 2271/96, any associated and applicable national law, instrument or regulation related thereto, (B) any similar blocking or anti-boycott law in the United Kingdom or (C) in the case of an Underwriter incorporated or organised under the laws of the Federal Republic of Germany, Section 7 of the German Foreign Trade Ordinance (*Außenwirtschaftsverordnung*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The terms which follow, when used in this Agreement, shall have the meanings indicated.

"**Applicable Time**" shall mean 4:42 p.m. New York City time on the date of this Agreement.

"**Bail-in Legislation**" means in relation to a member state of the European Economic Area which has implemented, or which at any time implements, the BRRD, the relevant implementing law, regulation, rule or requirement as described in the EU Bail-in Legislation Schedule from time to time.

"**Bail-in Powers**" means any Write-down and Conversion Powers as defined in relation to the relevant Bail-in Legislation.

"**Base Prospectus**" shall mean the prospectus referred to in paragraph (a) above contained in the Registration Statement at the Effective Date.

"**BRRD**" means Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms, as amended.

"**BRRD Party**" means any party to this Agreement subject to the Bail-in Legislation.

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"**BHC Act Affiliate**" has the meaning assigned to the term "affiliate" in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).

"**Covered Entity**" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §
252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §
47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §
382.2(b).

"**Default Right**" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

"**Effective Date**" shall mean each date that the Registration Statement and any post- effective amendment or amendments thereto became or becomes effective and each deemed effective date with respect to the Underwriters pursuant to Rule 430B(f)(2).

"**EU Bail-in Legislation Schedule**" means the document described as such, then in effect, and published by the Loan Market Association (or any successor person) from time to time at http://www.lma.eu.com/.

"**Execution Time**" shall mean the date and time that this Agreement is executed and delivered by the parties hereto.

"**Final Prospectus**" shall mean the prospectus supplement relating to the Securities that is first filed pursuant to Rule 424(b) after the Execution Time, together with the Base Prospectus or, if no filing pursuant to Rule 424(b) is required, shall mean the form of final prospectus relating to the Securities, including the Base Prospectus, included in the Registration Statement at the Effective Date.

"**Preliminary Prospectus**" shall mean the preliminary prospectus supplement to the Base Prospectus which describes the Securities and the offering thereof filed with the Commission at 2:29 p.m. New York City time on March 8, 2023.

"**Registration Statement**" shall mean the registration statement referred to in paragraph (a) above, as amended at the Execution Time (or, if not effective at the Execution Time, in the form in which it shall become effective) and, in the event any post-effective amendment thereto becomes effective prior to the Closing Date (as hereinafter defined), shall also mean such registration statement as so amended. Such term shall include any Rule 430B Information deemed to be included therein at the Effective Date as provided by Rule 430B. References to the "Registration Statement" shall include any new shelf registration statement relating to the Securities which is filed prior to the completion of the offering of these Securities.

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"**Release**" shall mean Release No. 33-6424 under the Act relating to delayed offerings by foreign governments or political subdivisions thereof.

"**Relevant Resolution Authority**" means the resolution authority with the ability to exercise any Bail-in Powers in relation to the relevant BRRD Party.

"**Republic Free Writing Prospectus**" shall mean any "issuer free writing prospectus," as defined in Rule 433, relating to the Securities in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in The Republic's records pursuant to Rule 433(g).

"**Republic General Free Writing Prospectus**" shall mean any Republic Free Writing Prospectus that is intended for general distribution to prospective investors, as evidenced by its being specified in Schedule III hereto.

"**Republic Limited-Use Free Writing Prospectus**" shall mean any Republic Free Writing Prospectus that is not a Republic General Free Writing Prospectus.

"**Rule 415**", "**Rule 424**" and "**Rule 430B**" refer to such rules under the Act as applicable to registration statements subject to Schedule B under the Act in accordance with the Release and, to the extent any such rule is not directly applicable, means the provisions thereunder as made applicable by the Release.

"**Rule 430B Information**" means information with respect to the Securities and the offering thereof permitted to be omitted from the Registration Statement when it becomes effective pursuant to Rule 430B.

"**Statutory Prospectus**" as of any time shall mean the prospectus relating to the Securities that is included in the Registration Statement immediately prior to that time, including any document incorporated by reference therein and any prospectus supplement or preliminary prospectus supplement deemed to be a part thereof. For purposes of this definition, information contained in a form of prospectus that is deemed retroactively to be a part of the Registration Statement pursuant to Rule 430B shall be considered to be included in the Statutory Prospectus as of the actual time that form of prospectus is filed with the Commission pursuant to Rule 424(b).

"**UK Bail-in Legislation**" means Part I of the UK Banking Act 2009 and any other law or regulation applicable in the UK relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (otherwise than through liquidation, administration or other insolvency proceedings).

"**UK Bail-in Liability**" means a liability in respect of which the UK Bail-in Powers may be exercised.

"**UK Bail-in Powers**" means the powers under the UK Bail-In Legislation to cancel, transfer or dilute shares issued by a person that is a bank or investment firm or affiliate of a bank or investment firm, to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability.

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"**UK BRRD Party**" means any party to this Agreement that is subject to the UK Bail-in Powers.

"**U.S. Special Resolution Regime**" means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

2. <u>Purchase and Sale</u>. Subject to the terms and conditions and in reliance upon the representations and
warranties herein set forth, The Republic agrees to sell to each Underwriter, and each Underwriter agrees, severally and not jointly, to purchase from The Republic, at the purchase price set forth in Schedule I hereto the principal amount of the
Securities set forth opposite such Underwriter's name in Schedule II hereto.

3. <u>Delivery and Payment</u>. Delivery of and payment for the Securities shall be made on the date and at the
time specified in Schedule I hereto (or such later date or time not later than five business days after such specified date on such date and at such time as the Representatives shall designate), which date and time may be postponed by agreement
between the Representatives and The Republic or as provided in Section 10 hereof (such date and time of delivery and payment for the Securities being herein called the "**Closing Date** "). Delivery of the Securities shall be made
to the Representatives for the respective accounts of the several Underwriters against payment by the several Underwriters through the Representatives of the purchase price thereof to or upon the order of The Republic by official bank check or wire
transfer payable in immediately available funds. Delivery of and payment for the Securities shall be made at the location specified in Schedule I hereto or as the Representatives shall reasonably designate otherwise at least one business day in
advance of the Closing Date. Certificates for the Securities shall be in fully registered form and shall be registered in such names and in such denominations as the Representatives may request not less than three full business days in advance of
the Closing Date.

Upon the request of the Representatives, The Republic agrees to have the Securities available for inspection, checking and any packaging by the Representatives in New York, New York, not later than 1:00 p.m. on the business day prior to the Closing Date.

4. Solely for the purposes of the requirements of Article 9(8) of the MIFID Product Governance rules under EU
Delegated Directive 2017/593 (the "**Product Governance Rules**") regarding the mutual responsibilities of manufacturers under the Product Governance Rules, Deutsche Bank AG, London Branch (the "**EU Manufacturer** ")
acknowledges that it understands the responsibilities conferred upon it under the Product Governance Rules relating to each of the product approval process, the target market and the proposed distribution channels as applying to the Securities and
the related information set out in the prospectus supplement in connection with the Notes. Each of the Republic, HSBC Bank plc and J.P. Morgan Securities plc notes the application of the Product Governance Rules and acknowledges the target market
and distribution channels identified as applying to the Securities by the EU Manufacturer and the related information set out in the prospectus supplement in connection with the Notes.

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5. Solely for the purposes of the requirements of 3.2.7R of the FCA Handbook Product Intervention and Product
Governance Sourcebook (the "**UK MiFIR Product Governance Rules**") regarding the mutual responsibilities of manufacturers under the UK MiFIR Product Governance Rules, Deutsche Bank AG, London Branch, HSBC Bank plc and J.P. Morgan
Securities plc (the "**UK Manufacturers**") understand the responsibilities conferred upon it under the UK MiFIR Product Governance Rules relating to each of the product approval process, the target market and the proposed distribution
channels as applying to the Securities and the related information set out in the prospectus supplement in connection with the Notes. The Republic notes the application of the UK MiFIR Product Governance Rules and acknowledges the target market and
distribution channels identified as applying to the Securities by the UK Manufacturer and the related information set out in the prospectus supplement in connection with the Notes.

6. <u>Agreements</u>. The Republic agrees with the several Underwriters that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Republic will use its best efforts to cause the Registration Statement, if not effective at the Execution
Time, and any amendment thereto, to become effective as soon as reasonably practicable thereafter. Prior to the termination of the offering of the Securities, The Republic will not file any amendment of the Registration Statement or supplement
(including the Final Prospectus or any Preliminary Prospectus) to the Base Prospectus unless The Republic has furnished the Representatives a copy for their review prior to filing and will not file any such proposed amendment or supplement to which
the Representatives reasonably object, unless The Republic is otherwise advised by its U.S. counsel that such filing is required under the Act. Subject to the foregoing sentence, The Republic will cause the Final Prospectus, properly completed, and
any supplement thereto to be filed with the Commission pursuant to the applicable paragraph of Rule 424(b) within the time period prescribed and will provide evidence satisfactory to the Representatives of such timely filing. The Republic will
promptly advise the Representatives (i) when the Registration Statement, if not effective at the Execution Time, and any amendment thereto, shall have become effective, (ii) when the Final Prospectus, and any supplement thereto, shall have
been filed with the Commission pursuant to Rule 424(b), (iii) when, prior to termination of the offering of the Securities, any amendment to the Registration Statement shall have been filed or become effective, (iv) of any request by the
Commission for any amendment of the Registration Statement or supplement to the Final Prospectus or for any additional information, (v) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration
Statement or the institution or threatening of any proceeding for that purpose and (vi) of the receipt by The Republic of any notification with respect to the suspension of the qualification of the Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose. The Republic will use its best efforts to prevent the issuance of any such stop order or the suspension of any such qualification and, if issued or suspended, to obtain as soon as
possible the withdrawal thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, at any time when a prospectus relating to the Securities is required to be delivered under the Act, any
event occurs as a result of which the Final Prospectus as then supplemented would include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein in the light of the circumstances under
which they were made not misleading, or if it shall be necessary to amend the Registration Statement or supplement the Final Prospectus to comply with the Act or the respective rules thereunder, The Republic promptly will (i) prepare and file
with the Commission, subject to the second sentence of paragraph (a) of this Section 6, an amendment or supplement which will correct such statement or omission or effect such compliance and (ii) supply any supplemented Final
Prospectus to the Representatives in such quantities as they may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The prospectus to be submitted for admission for listing on the Official List of the Luxembourg Stock Exchange
will contain all information which, according to the particular nature of The Republic and of the Securities being offered to the public or admitted to trading on a regulated market, is necessary to enable investors to make an informed assessment of
the assets and liabilities, financial position, profit and losses, and prospects of The Republic, and of the rights attaching to the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) As soon as practicable, The Republic will make generally available to the holders of the Securities in the
United States and to the Representatives a statement in reasonable detail in the English language of the revenues and expenditures of The Republic covering the first full fiscal year of The Republic commencing after the date of this Agreement, which
will satisfy the provisions of Section 11(a) of the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Republic will furnish to the Representatives and counsel for the Underwriters, without charge, copies of
the Registration Statement (including exhibits thereto) and, so long as delivery of a prospectus by an Underwriter or dealer may be required by the Act, as many copies of any Preliminary Prospectus, Republic Free Writing Prospectus and the Final
Prospectus and any supplement thereto as the Representatives may reasonably request. The Republic will pay the expenses of printing or other production of all documents relating to the offering of Securities pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Republic will endeavour to qualify the Securities for sale under the laws of such jurisdictions as the
Representatives may designate, will maintain such qualifications in effect so long as required for the distribution of the Securities, provided that The Republic shall not be required to take any action which would subject it to general or unlimited
service of process in any jurisdiction, and will arrange for the determination of the legality of the Securities for purchase by institutional investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Subject to a limit on total expenses as may otherwise have been agreed in writing between The Republic and the
Representatives, The Republic shall pay all costs and expenses incident to the performance of its obligations hereunder, including without limiting the generality of the foregoing, (i) all costs and expenses, including any tax, incident to the
preparation, engraving, issuance, execution, authentication and delivery of the Securities, including the fees and

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expenses of the Fiscal Agent, (ii) all costs and expenses incident to the preparing, printing and filing under the Act of the Registration Statement, the Base Prospectus, the Final Prospectus, any Republic Free Writing Prospectus and any preliminary prospectus (including in each case all exhibits, amendments and supplements thereto) (iii) all costs and expenses incurred in accordance with paragraph (e) above in connection with the registration or qualification and determination of eligibility for investment of the Securities under the laws of such jurisdictions as the Underwriters may designate (including fees of United States counsel for the Underwriters and their disbursements), (iv) all costs and expenses related to the eligibility and acceptance of the Securities for deposit with The Depository Trust Company (including fees of counsel to The Republic and/or the Underwriters and their disbursements in connection therewith), (v) any fees and expenses in connection with the listing and registration of the Securities if so listed and registered, (vi) all costs and expenses in connection with the printing (including word processing and duplication costs) and delivery of this Agreement, the Fiscal Agency Agreement, the Preliminary and Supplemental Blue Sky Memoranda and the furnishing to the Underwriters and dealers of copies of the Registration Statement and the Prospectus, including mailing and shipping, as herein provided, (vii) any fees payable to rating agencies in connection with the rating of the securities, (viii) costs and expenses of advertising, (ix) all costs of travel and other expenses related to investor presentations (excluding travel expenses of the Representatives but including the costs of presentations, room rentals and other similar expenses) and (x) any fee of the Financial Industry Regulatory Authority, Inc., in connection with its review of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To pay the Underwriters on the Closing Date the amount specified in Schedule I in respect of out of pocket
expenses (including fees and expenses of their counsel) incurred by the Underwriters in connection with this Agreement and the offering contemplated hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) So long as the Securities are outstanding, The Republic will furnish to the Representatives copies of all
reports and financial statements, if any, filed with the Commission or any national securities exchange in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Republic will use its best efforts to obtain the admission of the Securities on the Official List of the
Luxembourg Stock Exchange (the "**Stock Exchange**") as soon as practicable after the Closing Date, shall furnish to such Stock Exchange all documents, information and undertakings and publish all advertisements or other material that
may be necessary in order to effect such listing and shall cause such listing to be continued so long as any of the Securities remain outstanding; <u>provided</u>, <u>however</u>, that if, in the opinion of The Republic, the continuation of such
listing shall become unduly onerous, then The Republic may delist the Securities from any such Stock Exchange, in which case, at the request of the Representatives, The Republic will use its best efforts to obtain the listing of the Securities on
another recognized stock exchange reasonably acceptable to the Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) All payments made by The Republic under this Agreement shall be made in U.S. dollars, free and clear of, and
without withholding or deduction for, any taxes, duties, assessments or governmental charges of whatever nature, unless such

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withholding or deduction is required by law, in which event The Republic shall pay such additional amounts as will result in the receipt by the recipient of such amounts as would have been received by it if no such withholding or deduction had been required. In the event any transaction or payment made pursuant to this Agreement or in connection with the enforcement of this Agreement should be subject to any stamp duty, or other issue, transaction, value added or any other tax or duty (including court charges) payable in Türkiye, The Republic will pay such additional amounts as may be necessary to ensure that the actual amount received equals the amount that would have been received had the payments not been subject to such duty or tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Issuer free writing prospectuses</u>. The Republic represents and agrees that, unless it obtains the prior
written consent of the Representatives, and each Underwriter represents and agrees that, unless it obtains the prior written consent of The Republic and the Representatives, it has not made and will not make any offer relating the Securities that
(a) would constitute an "issuer free writing prospectus," as defined in Rule 433, or (b) would otherwise constitute a "free writing prospectus," as defined in Rule 405, required to be filed with the Commission. Any such
free writing prospectus consented to by The Republic and the Representatives is hereinafter referred to as a "**Permitted Free Writing Prospectus** ". The Republic represents that it has treated each Permitted Free Writing Prospectus as
an "issuer free writing prospectus," as defined in Rule 433, and has complied and will comply, as the case may be, with the requirements of Rules 164 and 433 applicable to any Permitted Free Writing Prospectus, including timely Commission
filing where required, legending and record keeping.

7. <u>Conditions to the Obligations of the Underwriters</u>. The obligations of the Underwriters to purchase the
Securities shall be subject to the accuracy of the representations and warranties on the part of The Republic contained herein as of the Execution Time and the Closing Date, to the accuracy of the statements of The Republic made in any certificates
pursuant to the provisions hereof, to the performance by The Republic of its obligations hereunder and to the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Registration Statement has not become effective prior to the Execution Time, unless the Representatives
agree in writing to a later time, the Registration Statement will become effective not later than (i) 6:00 p.m. New York City time, on the date of determination of the public offering price, if such determination occurred at or prior to 3:00 p.m.
New York City time on such date or (ii) 12:00 Noon on the business day following the day on which the public offering price was determined, if such determination occurred after 3:00 p.m. New York City time on such date; if filing of the Final
Prospectus, or any supplement thereto, is required pursuant to Rule 424(b), the Final Prospectus, and any such supplement, shall have been filed in the manner within the time period required by Rule 424(b) and in accordance with Section 6(a) of
this Agreement; no stop order suspending the effectiveness of the Registration Statement shall have been issued and no proceedings for that purpose shall have been instituted or threatened; and any request of the Commission for additional
information shall have been complied with to the satisfaction of the Representatives.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Republic shall have furnished to the Representatives the written opinion, satisfactory to the
Representatives, of the Chief Legal Advisor and Director General of Trials, Ministry of Treasury and Finance of The Republic of Türkiye (the "**Chief Legal Advisor** "), dated the Closing Date, to the effect that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Securities have been duly and validly authorized and executed in accordance with the Constitution and laws
of The Republic and, when duly authenticated in accordance with the terms of the Fiscal Agency Agreement and delivered and paid for in accordance with the terms of this Agreement, the Securities will be valid and binding obligations of The Republic
entitled to the benefits of the Fiscal Agency Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the obligations of The Republic under the Fiscal Agency Agreement, this Agreement and the Securities are and
will be direct, general and unconditional obligations of The Republic, are subject to civil and commercial substantive and procedural law and to the procedural requirements relating to enforcement and recognition of foreign judgments set forth in
Articles 50 through 63 of the Act on International Private Law and Procedural Law (Law No. 5718) (the "**International Private Law** "), except that, under the laws of The Republic, assets of The Republic are immune from attachment
or other forms of execution, whether before or after judgment, and, in the case of payment obligations thereunder, will constitute direct, general, unconditional and unsubordinated public External Indebtedness (as defined in the Securities) of The
Republic for which the full faith and credit of the Republic is pledged. The Securities rank and will rank without any preference among themselves and equally with all other unsubordinated public External Indebtedness of the republic. It is
understood that this provision shall not be construed so as to require the Republic to make payment under the Securities ratably with payments being made under any other public External Indebtedness; the full faith and credit of The Republic has
been pledged for the due and punctual payment of the principal of and interest on the Securities and for the performance of the obligations of The Republic with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Securities and the Fiscal Agency Agreement conform to the descriptions thereof in the Final Prospectus and
in the General Disclosure Package;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Republic has the power and authority required for the execution and delivery of the Fiscal Agency
Agreement, this Agreement, the issuance of the Securities and the performance by The Republic of its obligations thereunder and qualifies as a "seasoned foreign government" pursuant to the Release; and all authorizations, approvals,
waivers or consents (including, without limitation, the authorisation under Articles 4, 5 and 7 of the Law No. 4749) and all registrations and qualifications with, any court or governmental agency, body or official of The Republic required for
the execution and delivery of the Fiscal Agency Agreement and this Agreement, the issuance of the Securities and the performance by The Republic of its obligations thereunder have been obtained and are in full force and

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effect and all conditions contained therein (if any) required to be satisfied on or prior to the Closing Date have been duly satisfied, and all authorizations, approvals, consents, waivers, registrations and filings, if any, which are required under the laws of The Republic to permit the purchase by The Republic of the United States dollars needed to pay the principal of and interest on the Securities have been obtained and are in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Fiscal Agency Agreement has been duly authorized, executed and delivered by The Republic in accordance with
the Constitution and laws of The Republic and is a valid and binding agreement of The Republic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) this Agreement has been duly authorized, executed and delivered by The Republic in accordance with the
Constitution and laws of The Republic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all statements in the Registration Statement, the Final Prospectus and the General Disclosure Package with
respect to or involving the Constitution, laws, statutes and regulations of or pertaining to The Republic are accurate and complete and fairly present the information purported to be shown;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) under the laws of The Republic, The Republic would not be entitled to plead, or cause to be pleaded on its
behalf, immunity (sovereign or otherwise) from the jurisdiction of the courts of The Republic and the State and Federal courts in New York, New York, in respect of any suit, action or proceeding arising out of or relating to its obligations under or
by virtue of the Securities, the Fiscal Agency Agreement, or this Agreement, and such courts would have jurisdiction in respect of such suits, actions or proceedings, except that, under the laws of The Republic, assets of The Republic are immune
from attachment or other forms of execution, whether before or after judgment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) no stamp or similar taxes under the laws of The Republic are payable in connection with the issuance of the
Securities or the execution and delivery of this Agreement or the Fiscal Agency Agreement and no transfer taxes or similar taxes under the laws of The Republic are payable in connection with the transfer of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the choice of New York law to govern the validity, construction and performance of this Agreement, the
Securities and the Fiscal Agency Agreement would be upheld by a Turkish court as a valid and effective choice of law under the laws of The Republic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the execution, issuance, sale and delivery of the Securities, compliance by The Republic with all of the
provisions of the Fiscal Agency Agreement, this Agreement and the Securities and the consummation of the transactions contemplated by the Fiscal Agency Agreement and this Agreement do not conflict with or result in a breach or violation of any of
the terms or provisions of, or constitute a default under, or create or result in any lien, security interest or other encumbrance upon any assets of The Republic under the provisions of, any indenture, mortgage, deed

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of trust, loan agreement or other agreement or instrument in respect of borrowed money known to such Chief Legal Advisor to which The Republic is a party or by which The Republic is bound, nor do such actions result in a violation of any provision of the Constitution or laws of The Republic or any order, rule or regulation of any court or governmental agency or body of The Republic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) other than as may be set forth in the Final Prospectus and in the General Disclosure Package, there are no
material legal or governmental proceedings pending to which The Republic is a party or to which any property of The Republic is subject, and to the knowledge of such Chief Legal Advisor no such proceedings are threatened or contemplated by
governmental authorities or threatened by others and there is no contract or other document which is required to be described in the Registration Statement, the Final Prospectus or the General Disclosure Package or to be filed as an exhibit to the
Registration Statement which is not described or filed as required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) The Republic has validly submitted to the nonexclusive jurisdiction of the United States District Court for the
Southern District of New York, the Supreme Court of the State of New York, New York County, and the respective appellate courts therefrom in any suit, action or proceeding for the enforcement of the Fiscal Agency Agreement, this Agreement or the
Securities; a final judgment against The Republic in any such suit, action or proceeding brought in any such courts would be conclusive and binding upon The Republic and may be enforced in the courts of The Republic, without retrial or re-examination but subject to the procedural requirements relating to enforcement and recognition of foreign judgments set forth in Articles 50 through 63 of the International Private Law, except that under the laws
of The Republic, assets of The Republic are immune from attachment or other forms of execution, whether before or after judgment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) to ensure the legality, validity and enforceability of this Agreement, the Fiscal Agency Agreement or the
Securities, or admissibility in evidence of this Agreement, the Fiscal Agency Agreement or the Securities, it is not necessary that this Agreement, the Fiscal Agency Agreement or the Securities or any other document be filed, registered or recorded
with, or executed or notarized before, any court or other authority in The Republic, or that any registration charge or stamp or similar tax be paid on or in respect of this Agreement, the Fiscal Agency Agreement or the Securities, or any other
document other than (i) court charges imposed pursuant to the Law on Charges (Law No. 492) in the amount of 6.831% of the Turkish Lira equivalent of the amount in controversy (one quarter of which is payable at the commencement of any suit
or action and the remainder of which is payable within one month following the notification of the judgment), (ii) court charges payable in connection with the making of an appeal for an adverse judgment, (iii) the deposit, at the court's
discretion, of security for costs and (iv) lawyer's fees payable in accordance with the most recent tariff in force at the time of judgment as published in the Official Gazette of The Republic together with other court expenses;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) Article 30 of the Corporation Tax Law requires The Republic to withhold 15% (fifteen per cent.) withholding tax
from the interest on the Securities received by limited tax liability persons, whom are legal entities resident outside The Republic. Article 94 of the Income Tax Law requires The Republic to withhold 25% (twenty-five per cent.) withholding tax from
the interest on the Securities received by limited tax liability persons, whom are individuals resident outside The Republic. However, according to Temporary Article 67 of the Income Tax Law, as a result of the Decrees of the Council of Ministers of
The Republic (Decree Nos. 2009/14593 and 2009/14592) as currently in effect, such Turkish withholding taxes have been reduced to 0%. Furthermore, according to Article 15(b) of the Law No. 4749, the principal amount of the Securities and the
interest thereon on each interest payment date shall be considered part of the consolidated State debt and as a result shall be exempt from any and all Turkish taxes, including withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) the Registration Statement, as amended, the Preliminary Prospectus, the Final Prospectus, as supplemented, and
any Republic Free Writing Prospectus, and their filing with the Commission have been duly authorized by and on behalf of The Republic, the Registration Statement has been duly executed on behalf of The Republic and become effective under the Act
and, to the best of the knowledge of such Chief Legal Advisor, no stop order suspending the effectiveness of the Registration Statement has been issued and no proceedings for that purpose are pending before or threatened by the Commission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) such Chief Legal Advisor believes that (except as to the financial statements and other financial and
statistical data contained therein as to which such Chief Legal Advisor need not express any belief) the Registration Statement and the prospectus included therein at the time the Registration Statement became effective did not contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make statements therein not misleading, and the Final Prospectus, as of its date and the Closing Date does not contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) such Chief Legal Advisor believes that (except as to the financial statements and other financial and
statistical data contained therein as to which such Chief Legal Advisor need not express any belief) the documents specified in a schedule to its opinion, consisting of those included in the General Disclosure Package, as of the Applicable Time and
as of the Closing Date, did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were
made, not misleading;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) the information contained in the Final Prospectus, as of its date and the Closing Date, and in the General
Disclosure Package, as of the Applicable Time and the Closing Date, under the captions "Taxation— The Republic of Türkiye," "Debt Securities—Governing Law and Consent to Service" are accurate in all material
respects and fairly summarize the provisions of Turkish law therein described;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) the appointment of the Authorized Agent in Section 17 below and any waiver in that section by The Republic
in respect thereto are legal, valid and binding in accordance with their respective terms; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) any judgment obtained against The Republic in the foreign courts mentioned in this Agreement, the Fiscal Agency
Agreement and the Securities in respect of any sum payable by it under such agreements would be recognized and enforced by the courts in The Republic without re-examination of the issues as long as the
judgment is not clearly against public policy rules of The Republic and where the person against whom enforcement is sought does not raise objections in the Turkish courts to the effect that such person was not duly summoned to or represented at the
foreign court or that the judgment was rendered in such person's absence in violation of the laws of the foreign country. In the opinion of the Chief Legal Advisor, none of the terms of this Agreement, the Fiscal Agency Agreement and the
Securities violates public policy rules of The Republic and, accordingly, a judgment to enforce any such terms would not violate public policy rules of The Republic.

In rendering such opinion, such Chief Legal Advisor may rely without independent investigation on the opinion pursuant to paragraph (c) below as to matters of New York and United States Federal law. References to the Final Prospectus in this paragraph (b) include any supplements thereto at the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Representatives shall have received an opinion dated the Closing Date, satisfactory to the Representatives,
of Arnold & Porter Kaye Scholer LLP, special United States counsel to The Republic, to the effect that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the statements in the Registration Statement under the caption "Debt Securities" in the Final
Prospectus and in the General Disclosure Package under the caption "Description of the Notes" are accurate in all material respects and fairly summarize the provisions of the Securities and the Fiscal Agency Agreement purported to be
summarized therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the statements in the Registration Statement, the Final Prospectus and the General Disclosure Package under the
caption "Taxation—United States" are accurate in all material respects and fairly present the information purported to be shown therein;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) this Agreement is a legal, valid and binding obligation of The Republic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Fiscal Agency Agreement is a legal, valid and binding obligation of The Republic enforceable against The
Republic in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally and to the possible judicial application of laws or governmental action
affecting the enforcement of creditors' rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Securities, when duly authenticated in accordance with the terms of the Fiscal Agency Agreement and
delivered and paid for in accordance with the terms of this Agreement, will constitute legal, valid and binding obligations of The Republic enforceable against The Republic in accordance with their terms and entitled to the benefits of the Fiscal
Agency Agreement, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally and to the possible judicial application of laws or governmental action affecting the enforcement
of creditors' rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Republic has validly submitted, under the laws of the State of New York, and the Federal Laws of the United
States, to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York, the Supreme Court of the State of New York, New York County, and the respective appellate courts therefrom in any suit, action or
proceeding arising out of or based on this Agreement, the Fiscal Agency Agreement or the Securities, has to the fullest extent permitted by law, validly and irrevocably waived any objection to the laying of venue of any such action, suit or
proceeding in any such court, and the appointment of the Authorized Agent (as defined in this Agreement) as its authorized agent for purposes described in Section 17 of this Agreement is valid and legally binding on The Republic and any service
of process effected on such agent in the manner set for therein will be effective to confer valid personal jurisdiction over The Republic to the extent of any action referred to therein, subject to the limitations of the Foreign Sovereign Immunities
Act of 1976, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the agreement of The Republic contained in the Agreement, the Securities and the Fiscal Agency Agreement that
each will be governed and construed in accordance with the laws of the State of New York, except with respect to its authorization and execution by and on behalf of The Republic, is valid and binding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the Securities are exempt from the provision of the Trust Indenture Act of 1939, as amended, under
Section 304(a)(6) of said Act and no indenture in respect of the Securities need be qualified under said Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) considered in light of such counsel's understanding of the applicable law (including the requirements of
Schedule B and the Release and the character of the Final Prospectus) and such counsel's experience thereunder, the Registration Statement and the Final Prospectus (other than financial statements and other financial and statistical information
as to which such counsel need not express any opinion) appeared on their face to be appropriately responsive in all material respects to the Act, the rules thereunder and the Release.

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The Republic confirms that the Registration Statement has become effective under the Act as of the date and time specified in such opinion, and, to the best of the knowledge of such counsel, no stop order suspending the effectiveness of the Registration Statement has been issued and no proceedings for that purpose are pending before or threatened by the Commission.

In giving such opinion, Arnold & Porter Kaye Scholer LLP may (i) assume that the Fiscal Agency Agreement, the Securities and this Agreement have been duly authorized, executed and delivered by the appropriate party or parties thereto and that each such party has adequate power and authority to enter thereinto and (ii) rely without independent investigation on the opinion delivered pursuant to paragraph (b) above as to matters governed by the laws of The Republic and such opinion shall be subject to any limitations and exceptions contained in the opinion delivered pursuant to paragraph (b) above. References to the Final Prospectus in this paragraph (c) include any supplements thereto at the Closing Date.

In addition, Arnold & Porter Kaye Scholer LLP shall confirm that (except as to the financial statements and other financial and statistical information and data contained therein as to which counsel need not express any belief) nothing has come to such counsel's attention that would lead such counsel to believe that the Registration Statement and the prospectus included therein at the time the Registration Statement became effective contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make statements therein not misleading, that the Final Prospectus, as of its date and the Closing Date as applicable, contains or contained any untrue statement of a material fact or omits or omitted to state a material fact, necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or that the documents specified in a schedule to its opinion, consisting of those included in the General Disclosure Package, as of the Applicable Time and as of the Closing Date, did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. Reference to the Final Prospectus in this paragraph (c) includes any supplements thereto at the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Representatives shall have received from Clifford Chance LLP, counsel for the Underwriters, such opinion or
opinions, dated the Closing Date, with respect to the issuance and sale of the Securities, the Fiscal Agency Agreement, the Registration Statement, the Final Prospectus (together with any supplement thereto), the General Disclosure Package and other
related matters as the Representatives may reasonably require, and The Republic shall have furnished to such counsel such documents as they request for the purpose of enabling them to pass upon such matters. In giving such opinion, Clifford Chance
LLP may rely without independent investigation on the opinion delivered pursuant to paragraph 6(b) above as to the matters governed by the laws of The Republic and such opinion shall be subject to any limitations and exceptions contained in the
opinion delivered pursuant to paragraph (b) above.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Representatives shall have received from Pekin & Pekin, Turkish counsel to the Representatives, an
opinion or opinions, dated the Closing Date, in form and substance reasonably satisfactory to the Representatives. In rendering any such opinion, such Turkish counsel may rely, without independent investigation on its part, as to matters governed by
United States Federal and New York law upon New York counsel to the Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Republic shall have furnished to the Representatives a certificate of The Republic, signed by the Ministry
of Treasury and Finance of The Republic of Türkiye, dated the Closing Date, to the effect that the signer of such certificate has carefully examined the Registration Statement, the Final Prospectus, any supplement to the Final Prospectus, the
General Disclosure Package and this Agreement and that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the representations and warranties of The Republic in this Agreement are true and correct in all material
respects on and as of the Closing Date with the same effect as if made on the Closing Date and were true and correct in all material respects on and as of the Applicable Time with the same effect as if made at the Applicable Time and The Republic
has complied with all agreements and satisfied all conditions on its part to be performed or satisfied at or prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no stop order suspending the effectiveness of the Registration Statement has been issued and no proceedings for
that purpose have been instituted or, to The Republic's knowledge, threatened; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) there has been no material adverse change or any development which would reasonably be expected to result in a
material adverse change in the condition (financial, economic or political) of The Republic from that set forth in the Final Prospectus (exclusive of any supplement thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Subsequent to the Execution Time or, if earlier, the dates as of which information is given in the Registration
Statement (exclusive of any amendment thereof) and the Final Prospectus (exclusive of any supplement thereto), there shall not have been any change or any development which would reasonably be expected to result in a change in the condition
(financial, economic or political) or foreign exchange controls of The Republic from that set forth in the Registration Statement that, in the judgment of the Representatives, is material and adverse and makes it impractical or inadvisable to
proceed with the offering or delivery of the Securities as contemplated by the Registration Statement (exclusive of any amendment thereof) and the Final Prospectus (exclusive of any supplement thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Subsequent to the Execution Time, there shall not have been (A) any downgrading in the rating accorded The
Republic's debt securities by any rating agency set forth in Schedule I hereto or (B) any public announcement that the rating of any of The Republic's debt securities is under surveillance or review, with possible negative
implications, by any rating agency set forth in Schedule I hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subsequent to the Execution Time, no proceeding shall be pending or threatened to restrain or enjoin the
issuance, sale or delivery of the Securities or in any manner to question the laws, proceedings, directives, resolutions, approvals, consents or orders under which the Securities are to be issued or to question the validity of the Securities, and
none of such laws, proceedings, directives, resolutions, approvals, consents or orders shall have been repealed, revoked or rescinded in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Subsequent to the Execution Time, The Republic shall have not ceased to be a member of the International
Monetary Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Prior to the Closing Date, The Republic shall have furnished to the Representatives such further information,
certificates, opinions and other documents as the Representatives may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Representatives shall have received letters confirming on the Closing Date the rating of the Securities set
forth in the prospectus supplement filed with the Commission on the date hereof, with an effective filing date of March 8, 2023 by the rating agencies set forth on Schedule I hereto.

If any of the conditions specified in this Section 7 shall not have been fulfilled in all material respects when and as provided in this Agreement, or if any of the opinions and certificates mentioned above or elsewhere in this Agreement shall not be in all material respects reasonably satisfactory in form and substance to the Representatives and counsel for the Underwriters, this Agreement and all obligations of the Underwriters hereunder may be cancelled at, or at any time prior to, the Closing Date by the Representatives. Notice of such cancellation shall be given to The Republic in writing or by telephone or telegraph confirmed in writing.

8. <u>Reimbursement of Underwriters' Expenses</u>. If the sale of the Securities provided for herein is not
consummated because any condition to the obligations of the Underwriters set forth in Section 7 hereof is not satisfied, because of any termination pursuant to Section 11 hereof or because of any refusal, inability or failure on the part
of The Republic to perform any agreement herein or comply with any provision hereof, The Republic will reimburse the Underwriters severally upon demand in writing for all reasonably documented reasonable out-of-pocket expenses (including reasonable fees and disbursements of counsel) that shall have been incurred by them in connection with the proposed purchase and sale of the Securities.

9. <u>Indemnification and Contribution.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Republic shall indemnify and hold harmless each Underwriter and each person, if any, who controls any
Underwriter within the meaning of Section 15 of the Act or Section 20 of the Securities Exchange Act of 1934, from and against any loss, claim, damage or liability, joint or several, or any action in respect thereof (including, but not
limited to, any loss, claim, damage, liability or action relating to purchases and sales of Securities), to which that Underwriter or controlling person may become subject, under the Act or

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otherwise, insofar as such loss, claim, damage, liability (or any action in respect thereof) arises out of, or is based upon, (i) any untrue statement or alleged untrue statement of a material fact contained in the Base Prospectus, any Preliminary Prospectus, any Republic Free Writing Prospectus, the Registration Statement, the General Disclosure Package or the Final Prospectus or in any amendment or supplement thereto or (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and shall reimburse each Underwriter and each such controlling person promptly upon demand in writing for any legal or other expenses reasonably incurred by that Underwriter or controlling person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred; <u>provided</u>, <u>however</u>, that The Republic shall not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises out of, or is based upon, any untrue statement or alleged untrue statement or omission or alleged omission made in the Base Prospectus, any Preliminary Prospectus or the Final Prospectus or in any such amendment or supplement in reliance upon and in conformity with written information furnished to The Republic through the Representatives by or on behalf of any Underwriter specifically for inclusion therein. The foregoing indemnity agreement is in addition to any liability that The Republic may otherwise have to any Underwriter or to any controlling person of that Underwriter. The Republic further agrees to indemnify and hold harmless each Underwriter against any requirement under the laws of The Republic to pay any stamp or similar taxes in connection with the issuance of the Securities to such Underwriter by The Republic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Underwriter, severally and not jointly, shall indemnify and hold harmless The Republic and each of its
officials from and against any loss, claim, damage or liability, joint or several, or any action in respect thereof (including, but not limited to, any loss, claim, damage, liability or action relating to purchases and sales of Securities), to which
The Republic or any such official may become subject, under the Act or otherwise, insofar as such loss, claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement of a material fact
contained in the Base Prospectus, any Preliminary Prospectus or the Final Prospectus or in any amendment or supplement thereto or (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, but in each case only to the extent that the untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished
to The Republic through the Representatives by or on behalf of that Underwriter specifically for inclusion therein, and shall promptly reimburse The Republic and any such official for any legal or other expenses reasonably incurred by The Republic
or any such official in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred. The foregoing indemnity agreement is in addition to any liability that
any Underwriter may otherwise have to The Republic or any such official.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after receipt of an indemnified party under this Section 9 of notice of any claim or the
commencement of any action, the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under this Section 9, notify the indemnifying party in writing of the claim or the commencement of that action;
provided, however, that the failure to notify the indemnifying party shall not relieve it from any liability which it may have under this Section 9 except to the extent it has been materially prejudiced by such failure; and provided further
that the failure to notify the indemnifying party shall not relieve it from any liability which it may have to an indemnified party otherwise than under this Section 9. If any such claim or action shall be brought against any indemnified party,
and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the defense of such claim or action, the indemnifying party shall not be liable to the indemnified
party under this Section 9 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that the Representatives shall
have the right to employ counsel to represent jointly the Representatives and those other Underwriters and their respective controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be sought by
the Underwriters against The Republic under this Section 9 if (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel or (ii) the named parties in any such proceeding (including
any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would in the judgment of any such party or counsel thereto be inappropriate due to the actual or potential
differing interests between such parties, and in each such event the fees and expenses of such separate counsel shall be paid by The Republic. It is understood that the indemnifying party shall not, in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for fees and expenses of more than one separate counsel (in addition to any local counsel) for all indemnified parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the indemnification provided for in this Section 9 shall for any reason be unavailable to or
insufficient to hold harmless an indemnified party under Section 8(a) or 8(b) in respect of any loss, claim, damage or liability, or any action in respect thereof, referred to therein, then each indemnifying party shall, in lieu of indemnifying
such indemnified party, contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability, or action in respect thereof, (i) in such proportion as shall be appropriate to reflect the
relative benefits received by The Republic on the one hand and the Underwriters on the other from the offering of the Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law or if the
indemnified party failed to give the notice required under Section 9(c) and as a result is not entitled to indemnification thereunder, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause
(i) above but also the relative

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fault of The Republic on the one hand and the Underwriters on the other with respect to the statements or omissions which resulted in such loss, claim, damage or liability, or action in respect thereof, as well as any other relevant equitable considerations. The relative benefits received by The Republic on the one hand and the Underwriters on the other with respect to such offering shall be deemed to be in the same proportion as the total net proceeds from the offering of the Securities purchased under this Agreement (before deducting expenses) received by The Republic bear to the total underwriting discounts and commissions received by the Underwriters with respect to the shares of the Securities purchased under this Agreement, in each case as set forth in the table on the cover page of the Final Prospectus. The relative fault shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by The Republic or the Underwriters, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission. The Republic and the Underwriters agree that it would not be just and equitable if contributions pursuant to this Section 9(d) were to be determined by *pro rata* allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take into account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, damage or liability, or action in respect thereof, referred to above in this Section 9(d) shall be deemed to include, for purposes of this Section 9(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 9(d), no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Securities underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such Underwriter has otherwise paid or become liable to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Underwriters' obligations to contribute as provided in this Section 9(d) are several in proportion to their respective underwriting obligations and not joint. Each party entitled to contribution agrees that, upon the service of a summons or other initial legal process upon it in any action instituted against it in respect to which contribution may be sought, it shall promptly give written notice of such service to the party or parties from whom contribution may be sought, but the omission so to notify such party or parties of any such service shall not relieve the party from whom contribution may be sought from any obligation it may have hereunder or otherwise (except as specifically set forth in subsection (c) hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Underwriters severally confirm that the statements with respect to distribution by the Underwriters of the
Securities set forth on the cover page of, and under the caption "Underwriting" or "Plan of Distribution" in, the Final Prospectus are correct and constitute the only information furnished in writing to The Republic by or on
behalf of the Underwriters specifically for inclusion in the Registration Statement and the Final Prospectus.

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10. <u>Default by an Underwriter</u>. If any one or more Underwriters shall fail to purchase and pay for any of the
Securities agreed to be purchased by such Underwriter or Underwriters hereunder and such failure to purchase shall constitute a default in the performance of its or their obligations under this Agreement, the remaining non- defaulting Underwriters shall be obligated severally to purchase and pay for (in the respective proportions which the amount of Securities set forth opposite their names in Schedule II hereto bears to the
aggregate amount of Securities set forth opposite the names of all the remaining Underwriters) the Securities which the defaulting Underwriter or Underwriters agreed but failed to purchase; provided, however, that the remaining non-defaulting Underwriters shall not be obligated to purchase any of the Securities if the aggregate principal amount of Securities which the defaulting Underwriter or Underwriters agreed but failed to purchase
exceeds 9.09% of the aggregate principal amount of Securities and any remaining non-defaulting Underwriter shall not be obligated to purchase more than 110% of the principal amount of Securities set forth
opposite its name in Schedule II hereto. If the foregoing maximums are exceeded, the remaining non-defaulting Underwriters, or those other underwriters satisfactory to the Representatives who so agree, shall
have the right, but shall not be obligated, to purchase, in such proportion as may be agreed upon among them, all the Securities to be purchased by the defaulting Underwriter or Underwriters. If the remaining Underwriters or other underwriters
satisfactory to the Representatives do not elect to purchase Securities that the defaulting Underwriter or Underwriters agreed but failed to purchase within 36 hours after such default, this Agreement shall terminate without liability on the part of
any non-defaulting Underwriter or The Republic. As used in this Agreement, the term "Underwriter" includes, for all purposes of this Agreement unless the context requires otherwise, any party not
listed in Schedule II hereto who, pursuant to this Section 10, purchases Securities that a defaulting Underwriter agreed but failed to purchase.

Nothing contained herein shall relieve a defaulting Underwriter of any liability it may have to The Republic for damages caused by its default. If other underwriters are obligated or agree to purchase the Securities of a defaulting or withdrawing Underwriter, either the Representatives or The Republic may postpone the Closing Date for up to seven full business days in order to effect any changes that in the opinion of counsel for The Republic or counsel for the Underwriters may be necessary in the Registration Statement, the Final Prospectus or in any other document or arrangement.

11. <u>Termination</u>. This Agreement shall be subject to termination in the absolute discretion of the
Representatives, by notice given to The Republic prior to delivery of and payment for the Securities, if prior to such time (i) trading in securities generally on the New York Stock Exchange, the American Stock Exchange or the over the counter
market shall have been suspended or limited or minimum prices shall have been established on either of such exchanges or such market by the Commission or by any other regulatory body or governmental authority having jurisdiction, (ii) a banking
moratorium shall have been declared by United States Federal or New York, California or Illinois state authorities, or authorities of The Republic, (iii) there shall have been any outbreak of or escalation in hostilities involving The Republic
or the United States or there shall have been a declaration of a national emergency or war by The Republic or the United

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States or (iv) there shall have occurred such a material adverse change in general economic, political or financial conditions, or foreign exchange controls, of The Republic or the United States (or the effect of international conditions on the financial markets in the United States shall be such) as to make it, in the judgment of the Representatives, impracticable or inadvisable to proceed with the public offering or delivery of the Securities on the terms and in the manner contemplated by the Final Prospectus (exclusive of any supplement thereto).

12. <u>Representations and Indemnities to Survive</u>. The respective agreements, representations, warranties,
indemnities and other statements of The Republic or its officials and of the Underwriters set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf of any Underwriter
or The Republic or any of the officials or controlling persons referred to in Section 9 hereof, and will survive delivery of and payment for the Securities. The provisions of Sections 6(g), 8 and 9 hereof shall survive the termination or
cancellation of this Agreement.

13. <u>Notices</u>. All communications hereunder will be in writing and effective only on receipt, and, if sent to
the Representatives, will be mailed, delivered or telegraphed and confirmed to them, at the address specified in Schedule I hereto; or, if sent to The Republic, will be mailed, delivered or telegraphed and confirmed to it at: attention of General
Directorate of Debt Office (facsimile: +90 216 633 7334) and General Directorate of Public Finance (facsimile: +90 312 204 7145).

14. <u>Successors</u>. This Agreement will inure to the benefit of and be binding upon the parties hereto and their
respective successors and the officials and controlling persons referred to in Section 9 hereof, and no other person will have any right or obligation hereunder.

15. <u>Applicable Law</u>. This Agreement will be governed by and construed in accordance with the laws of the
State of New York except with respect to its authorization and execution by and on behalf of The Republic.

16. <u>Language</u>. All communications hereunder and all documents to be furnished hereunder will be in the
English language or accompanied by an English translation thereof.

17. <u>Jurisdiction; Service of Process, Etc</u>. The Republic hereby appoints the Treasury and Financial Counselor
at each of the Embassy of The Republic of Türkiye in New York, 821 United Nations Plaza, New York, New York 10017 and the Embassy of The Republic of Türkiye, and, 2525 Massachusetts Avenue, N.W. Washington, D.C. 20008, as its Authorized
Agent (each an "**Authorized Agent**") upon whom process may be served in any action by the Representatives, or by any persons controlling the Representatives, arising out of or based upon this Agreement which may be instituted in each
of the United States District Court for the Southern District of New York, the Supreme Court of the State of New York, New York County, and the respective appellate courts therefrom; and each of the parties hereto irrevocably submits to the
jurisdiction of any such court in respect of any such action and irrevocably waives any objection which it may now or hereafter have to the laying of venue of any such action in any such court and The Republic waives any right to which it may be
entitled on account of residence or domicile. The Republic hereby irrevocably agrees that a final judgment in any such suit, action or proceeding brought in any such courts shall be conclusive and binding upon The Republic and, to the fullest extent
permitted by law,

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may be enforced in the competent courts of any other jurisdiction, including The Republic. The Republic hereby irrevocably and expressly waives the diplomatic immunity of the Authorized Agent at the Embassy of The Republic of Türkiye in New York and Washington, D.C. with respect to the acceptance of the service of process referred to herein pursuant to Article 32 of the Vienna Convention on Diplomatic Relations. The Republic will maintain at all times in the Borough of Manhattan, The City of New York or Washington, D.C., a person acting as Authorized Agent as long as any of the Securities remain outstanding. The Republic will take any and all action, including the filing of any and all documents and instruments, which may be necessary to continue such appointment in full force and effect as aforesaid. Service of process upon either or any Authorized Agent at the address indicated for such agent in this Section 17, or at such other address in Borough of Manhattan, The City of New York or Washington, D.C. as may be the office of the Authorized Agent, The Republic of Türkiye at the time of the service or service of process mailed or delivered via facsimile to The Republic at its address and facsimile numbers set forth in Section 13 hereof shall be deemed, in each case and in every respect, effective service of process upon The Republic in New York. Upon receipt of such service of process, the relevant Authorized Agent shall advise the Ambassador of The Republic to the United States of America and the Ministry of Treasury and Finance of The Republic of Türkiye promptly by telex of its receipt thereof, but the failure to so advise shall have no effect on the validity or timeliness of such service. Notwithstanding the foregoing, any such action may be instituted in any competent court in The Republic. The Republic hereby irrevocably waives, to the fullest extent permitted by law, any immunity from jurisdiction to which it might otherwise be entitled (including sovereign immunity and immunity from pre judgment attachment, post judgment attachment and execution) in any such action in each of the United States District Court for the Southern District of New York, the Supreme Court of the State of New York, New York County, and the respective appellate courts therefrom, or in any competent court in The Republic. It is understood that the foregoing waiver does not apply to any assets of The Republic located in The Republic and also does not apply to the assets of The Republic outside The Republic that are used in the exercise of sovereign authority. No waiver of immunity by The Republic shall be interpreted to include a waiver of immunity against actions brought under the U.S. federal securities laws or any securities laws of any state of the United States. In addition, under the laws of The Republic, assets of The Republic are immune from attachment or other forms of execution, whether before or after judgment.

Without limiting the generality of any of the foregoing, The Republic agrees, without prejudice to the enforcement of a judgment obtained in New York, or in any other jurisdiction other than The Republic according to the provision of Article 54 of the International Private Law, that in the event that The Republic is sued in a court in The Republic in connection with this Agreement, such judgment obtained in New York, or in any other jurisdiction other than The Republic shall constitute conclusive evidence of the existence and amount of the claim against The Republic, pursuant to the first paragraph of Article 193 of the Civil Procedure Code of The Republic (Law No. 6100) and Articles 58 and 59 of the International Private Law.

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18. <u>Judgment Currency</u>. If, under any applicable law and whether pursuant to a judgment being made or
registered against The Republic or for any other reason, any payment under or in connection with this Agreement is made or fails to be satisfied in a currency (the "**other currency**") other than that in which the relevant payment is
expressed to be due (the "**required currency**") under this Agreement, then, to the extent that the payment (when converted into the required currency at the rate of exchange on the date of payment or, if it is not practicable for the
relevant recipient of the payment to purchase the required currency with the other currency on the date of payment, at the rate of exchange as soon thereafter as it is practicable for it to do so) actually received by the relevant recipient of the
payment falls short of the amount due under the terms of this Agreement, to the extent permitted by law, The Republic undertakes that it shall as a separate and independent obligation, indemnify and hold harmless each relevant recipient of the
payment against the amount of such shortfall. For the purpose of this Section 18, "rate of exchange" shall take into account any premium and other reasonable costs of exchange.

19. <u>No Fiduciary Obligation</u>. For the avoidance of doubt, no Underwriter has a fiduciary duty to The Republic
or its employees in connection with this Agreement.

20. Notwithstanding and to the exclusion of any other term of this Agreement or any other agreements, arrangements,
or understanding between any BRRD Party and The Republic, The Republic acknowledges, accepts, and agrees to be bound by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the effect of the exercise of Bail-in Powers by the Relevant Resolution
Authority in relation to any BRRD Liability of a BRRD Party to The Republic under this Agreement, that (without limitation) may include and result in any of the following, or some combination thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the reduction of all, or a portion, of the BRRD Liability or outstanding amounts due thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the conversion of all, or a portion, of the BRRD Liability into shares, other securities or other obligations
of a BRRD Party or another person (and the issue to or conferral on The Republic of such shares, securities or obligations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the cancellation of the BRRD Liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the amendment or alteration of any interest, if applicable, thereon, the maturity or the dates on which any
payments are due, including by suspending payment for a temporary period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the variation of the terms of this Agreement, as deemed necessary by the Relevant Resolution Authority, to give
effect to the exercise of Bail-in Powers by the Relevant Resolution Authority.

21. Notwithstanding and to the exclusion of any other term of this Agreement or any other agreements, arrangements,
or understanding between any UK BRRD Party and The Republic, The Republic acknowledges and accepts that a UK Bail-in Liability arising under this Agreement may be subject to the exercise of UK Bail-in Powers by the relevant UK resolution authority, and acknowledges, accepts, and agrees to be bound by:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the effect of the exercise of UK Bail-in Powers by the relevant UK
resolution authority in relation to any UK Bail-in Liability of a UK BRRD Party to The Republic under this Agreement, that (without limitation) may include and result in any of the following, or some
combination thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the reduction of all, or a portion, of the UK Bail-in Liability or
outstanding amounts due thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the conversion of all, or a portion, of the UK Bail-in Liability into
shares, other securities or other obligations of a UK BRRD Party or another person (and the issue to or conferral on The Republic of such shares, securities or obligations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the cancellation of the UK Bail-in Liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the amendment or alteration of any interest, if applicable, thereon, the maturity or the dates on which any
payments are due, including by suspending payment for a temporary period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the variation of the terms of this Agreement, as deemed necessary by the relevant UK resolution authority, to
give effect to the exercise of UK Bail-in Powers by the relevant UK resolution authority.

22. Recognition of the U.S. Special Resolution Regimes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that any Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special
Resolution Regime, the transfer from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if
this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any Underwriter is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes
subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Initial Purchaser are permitted to be exercised to no greater extent than such Default Rights could be exercised
under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.

21. <u>Counterparts</u>. This Agreement may be signed in two or more counterparts, which together shall constitute
one and the same instruments. Delivery of an electronic signature page to this Agreement by facsimile transmission or other electronic image scan transmission (e.g., "PDF" or "tif" via email) shall be as effective as delivery of
a manually signed counterpart of this Agreement.

If the foregoing is in accordance with your understanding of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall represent a binding agreement among The Republic and the several Underwriters.

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| |
|:---|
| Very truly yours, |
| **THE REPUBLIC OF TÜRKİYE** |
| acting by and through its |
| Minister of Treasury and Finance |
| By: /s/ Yiğit Korkmaz YAŞAR |
| Title: Acting Director General, Ministry of Treasury and Finance |

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*[Signature Page to the Underwriting Agreement]* 

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| |
|:---|
| The foregoing Agreement is<br>hereby confirmed and accepted as of the date specified in Schedule I hereto. |
| **DEUTSCHE BANK AG, LONDON BRANCH** |
| By: /s/ ABDESLAM ALAOUI |
| Title: Managing Director |
| By: /s/ SAHEL CHAVOUSHI |
| Title: Director |

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*[Signature Page to the Underwriting Agreement]* 

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| |
|:---|
| The foregoing Agreement is<br>hereby confirmed and accepted as of the date specified in Schedule I hereto. |
| **HSBC BANK PLC** |
| By: /s/ Ana Kraemer |
| Title: Senior Legal Counsel |

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*[Signature Page to the Underwriting Agreement]* 

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| |
|:---|
| The foregoing Agreement is<br>hereby confirmed and accepted as of the date specified in Schedule I hereto. |
| **J.P. MORGAN SECURITIES PLC** |
| By: /s/ Clark Gard |
| Title: Executive Director |

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*[Signature Page to the Underwriting Agreement]* 

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**SCHEDULE I** 

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| | |
|:---|:---|
| Underwriting Agreement dated: March 8, 2023 | Underwriting Agreement dated: March 8, 2023 |
| Registration Statement No.: 333-236683 | Registration Statement No.: 333-236683 |
| Representative(s): | Deutsche Bank AG, London Branch<br> Winchester House<br> 1 Great Winchester Street<br> London EC2N 2DB<br> United Kingdom<br>HSBC Bank plc<br> 8 Canada Square<br> London E14 5HQ<br> United Kingdom<br>J.P. Morgan Securities plc<br> 25 Bank Street<br> Canary Wharf<br> London E14 5JP<br> United Kingdom |

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| |
|:---|
| Fiscal Agency Agreement dated as of March 23, 2015, as amended by Amendment No. 1 to the Fiscal Agency Agreement dated March 15, 2017. |
| Fiscal Agent: The Bank of New York Mellon |
| Title, Purchase Price and Description of Securities: |
| Title: The Republic of Türkiye<br> 9.375% Notes due March 14, 2029 |
| Principal amount: $2,250,000,000 |
| Purchase price: 99.368% of the principal amount of the Notes, representing the public offering price of 99.438% minus the underwriting discount of 0.070% of the principal amount of the Notes. |
| Amount to be reimbursed under<br> Section 6(h): $0.00 |

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Other provisions: The Republic has agreed not to launch another issue until after the Closing Date of this transaction.

Closing Date, Time and Location:

March 14, 2023, 10:00 a.m., New York City time

Clifford Chance LLP

10 Upper Bank Street

Canary Wharf

London E14 5JJ

Rating Agencies referred to in Section 7(h):

Fitch Investor Services, Inc.

Moody's Investors Service, Inc.

Standard & Poor's Corporation

Rating Agencies referred to in Section 7(l):

Fitch Ratings Ltd.

Moody's Investors Service, Inc.

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**SCHEDULE II** 

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| | |
|:---|:---|
| **Underwriter** | **Principal Amount of<br>Securities to Be Purchased**<br>**9.375% Notes due March**<br>**14, 2029** |
|  Deutsche Bank AG, London Branch | $750000000 |
|  HSBC Bank plc | $750000000 |
|  J.P. Morgan Securities plc | $750000000 |
|  **Total**  | $2250000000 |

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**SCHEDULE III** 

**Republic General Free Writing Prospectuses** 

[N/A]

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**SCHEDULE IV** 

**Filed Pursuant to Rule 433** 

**Registration No. 333 236683** 

**March 8, 2023** 

**Pricing Term Sheet** 

**FINAL PRICING TERMS OF THE REPUBLIC OF TÜRKİYE USD 2,250,000,000 9.375% NOTES DUE March 14, 2029** 

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| | |
|:---|:---|
| ISSUER: | The Republic of Türkiye |
| SECURITIES: | 9.375% Notes due March 14, 2029 |
| PRICING DATE: | March 8, 2023 |
| ISSUE FORMAT: | Global (SEC Registered) Offering |
| ISSUE SIZE: | USD 2,250,000,000 |
| PRICE TO PUBLIC: | 99.438% |
| TOTAL FEES: | USD 1,575,000 (0.070%) |
| NET PROCEEDS TO ISSUER: | USD 2,235,780,000 |
| RE-OFFER YIELD: | 9.500% |
| COUPON: | 9.375% |
| TENOR: | 6 years |
| MATURITY DATE: | March 14, 2029 |
| SPREAD TO BENCHMARK US TREASURY: | 516.7 bps |
| BENCHMARK US TREASURY: | UST 4.000% due Feb 2028 |
| BENCHMARK US TREASURY YIELD: | 4.333% |
| DENOMINATIONS: | USD 200,000 / USD 1,000 |
| INTEREST PAYMENT DATES: | March 14 and September 14 beginning on September 14, 2023 |
| DAY COUNT CONVENTION: | 30/360 |

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| | |
|:---|:---|
| CUSIP / ISIN: | 90014TAJ0 / US90014TAJ07 |
| GOVERNING LAW: | The Notes will be governed by the laws of the State of New York, except with respect to the authorization and execution of the Notes, which will be governed by the laws of The Republic of Türkiye. |
| EXPECTED LISTING: | Luxembourg Stock Exchange (Regulated Market) |
| LEAD-MANAGERS/ BOOKRUNNERS: | Deutsche Bank AG, London Branch, HSBC Bank plc, and J.P. Morgan Securities plc |
| SETTLEMENT DATE: | Expected March 14, 2023 (T+4) through the book-entry facilities of The Depository Trust Company |
| MANUFACTURER TARGET MARKET: | Professional clients, eligible counterparties (subject to any applicable selling restrictions) (all distribution channels) |

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This communication is intended for the sole use of the person to whom it is provided by us.

The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus, any prospectus supplement or free writing prospectus for this offering if you request it by calling toll free Deutsche Bank AG, London Branch at +1-800-503-4611, HSBC Bank plc at +1-866-811-8049 and J.P. Morgan Securities plc at +1-866-803-9204.

The preliminary prospectus supplement relating to the Notes is available under the following link: https://www.sec.gov/Archives/edgar/data/869687/000119312523064266/d466012d424b5.htm

You should not reply to this announcement. Any reply email communications, including those you generate using the "Reply" function on your email software will be ignored or rejected.

Any disclaimer or other notice that may appear below is not applicable to this communication and should be disregarded. Such disclaimer or notice was automatically generated as a result of this communication being sent by Bloomberg or another email system.