Recent Development
The Draft Law on Amendment of Certain Laws and Decrees Having the Force of Law (“Draft Law”), submitted to the Precedency of the Grand National Assembly of Turkey, proposes amendments to certain laws, including Financial Leasing, Factoring and Financing Companies Law No. 6361 (“Law”) and decrees having the force of law.
What’s New?
The Draft Law explicitly sets forth that intragroup lending among companies that belong to the same group of companies under Turkish Commercial Code No. 6102 is possible.
Conclusion
The abolition of the Decree No. 90 Having the Force of Law on Lending Transaction resulted in debates as to whether intragroup lending constitutes the crime of usury under Article 241 of the Criminal Code or unauthorized banking under Article 150 of the Banking Law.
Accordingly, if the Draft Law is enacted in its current iteration, it will be clear that intragroup lending does not constitute any of these crimes.
