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September 20, 2018

The Amendments to the Decree No. 32

Regulation
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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 restrict foreign currency or indexed to foreign currency payments for certain resident-to-resident transactions.

However it is easy to find lots of legal alerts and memorandums, it is recognized that there are no appropriate translation of the amended articles. With regard to this we find helpful to share the exact translation of the amended articles with our clients.

 

The Amended Articles Introduced With The Presidential Decree  Are Stated As Below:

Article 1 – The following sub-clause has been added to Article 4 of Decree No.32 on the Protection of the Value of the Turkish Lira dated 07/08/1989 (“Decree“).

  1. g) Residents in Turkey, except under certain circumstances to be determined by the Ministry, shall not agree contract price in lease of all kinds of movable and immovable properties including purchase and sale of movable and immovable, vehicle and financial leasing, leasing, and employment agreements, service agreements and contracts of work and, any other payment liabilities arisen from the foregoing agreements executed between Turkish residents, in foreign currency or indexed to foreign currency.

Article 2 – The following provisional clause has also been added to the Decree.

Provisional Article 8 – Except under certain circumstances to be determined by the Ministry, contract prices denominated in foreign currency under the existing agreements, which have already been executed and indicated in the above-mentioned sub-clause, will be re-determined in Turkish Lira within 30 days as of the effective date of Article 4(g) of Decree.

 

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