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20September2018

Important Statement of Ministry of Treasury and Finance

It has been announced on our website that we have expecting upcoming statements due to uncertainty regarding both the market expectation and the decree interpretation after the Presidential Decree which is published on the date of 13.09.2018.

The Ministry of Treasury and Finance issued a press statement about the Presidential Decree with regard to converting the agreements in foreign currency into Turkish lira. However, no progress has been made yet regarding the subsidiary regulations following the press statement.

According to the press statement dated 17.09.2018, articles 17 and 17/A of the Decree no.32 on the Protection of the Value of Turkish Currency Law which regulates the usage of foreign-currency loan, are cited as examples. Hereunder; the transactions within the scope of the articles that regulate the foreign currency based loans of residents in Turkey, shall be outside the scope of foreign currency based contract prohibition. The contracts made by the residents in Turkey who may use foreign currency based loans without any restrictions and thus enter into an obligation with foreign currency, may not be the subject of foreign currency based contract prohibition.

It is emphasized on the press statement that, "it shall be determined and announced within the shortest time by considering the opinions of the relevant public institutions and other parties, without causing any pressure on the economic activity". Besides, it is indicated by the Ministry that foreign currency based input costs or obligations shall be evaluated to determine the extent of the situations that will be deemed as exceptions.

We hope further explanations are to be announced in a timely manner to clarify the hesitations regarding the relevant developments.

Written by Seda Arıcı, Posted in Foreign Exchange Legislation, Law on Protection of the Value of Turkish Currency

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About The Author

Seda Arıcı

Legal Consultant | Attorney
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