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Legal Alerts

Ministry to Define FX Payment Ban Exemptions

Legal Alerts
Banking & Finance

Recent Developments

The amendments to the Decree No. 32 Regarding the Protection of the Value of the Turkish Currency (“Decree No. 32“) published in the Official Gazette on September 13, 2018 introduced a ban on FX and FX-indexed payments for agreements concerning the sale and purchase of real estate and movable properties; the leasing of real estate and movable properties, including financial leasing and vehicles leasing (cars and other vehicles); and employment agreements, service contracts and independent constructor agreements (work contracts).

The Decree No. 32 authorized the Ministry of Treasury and Economy (“Ministry“) to provide exemptions to these restrictions.

In its press release dated September 17, 2018, the Ministry announced that it will define the exemptions as soon as possible, without interrupting economic activity. In defining these exemptions, the Ministry will consult the concerned public institutions and other stakeholders, as well as consider the FX costs of businesses and the agreements of residents eligible to borrow in FX and thus have FX liabilities pursuant to the Decree No. 32.

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