Turkish firms to have easy access EU funds

Mehmet Şimşek, the deputy prime minister in charge of the economy, said prospectus formats, which were approved by the Capital Markets Board (SPK), have obtained visas from the European Securities and Markets Authority (ESMA). The prospectuses are prepared to inform the public about companies and their public share offerings.

Speaking to Anadolu Agency (AA), Şimşek said the SPK created a new legal infrastructure for capital markets that is compatible with European Union norms as a result of secondary arrangements that it had been in the making for some time. Commenting on the EMSA's decision, Şimşek said a share prospectus, which was prepared in accordance with current regulations in Turkey, will be accepted as a valid certification that is approved by the authorized bodies of EU member countries in accordance with the relevant article of the EU Prospectus Directive. The prospectuses approved by the SPK will be valid in other EU member states, and may obtain a passport after they are endorsed by an authorized body of an EU country. Thus, all Turkish companies can present SPK-approved prospectuses to EU countries in their application to these countries for share sales.

The ESMA's decision places SPK regulations about share prospectuses, which are one of the most important documents for companies' investment decisions, in line with EU regulations. Şimşek stressed that the decision is critical for Istanbul to become a global financial center and Turkish markets to integrate into EU markets, adding: "This development will enable the increase of funding opportunities for our companies in EU countries in the upcoming period."