DECREE AMENDING DECREE NO. 32 ON THE PROTECTION OF THE VALUE OF THE TURKISH CURRENCY
The Presidential Decree No. 85 Amending the Decree no. 32 on the Protection of the Value of the Turkish Lira (in Turkish “Türk Parasının Kıymetini Koruma Hakkında 32 Sayılı Kararda Değişiklik Yapılmasına Dair Karar”, hereinafter referred to as the “Decree”), dated 12 September 2018 is published in the Official Gazette on 13 September 2018 and entered into force on the same day.
As per the said Decree;
- the Article 4.g stating that “Save for the cases to be determined by the Ministry, for sales and lease agreements on movable and immovable properties, agreements on all sorts of rentals, leasing on movable and immovable properties including vehicle rents and financial leasing, labor contracts, agreements on work/construction and service concluded between the entities located in Turkey, the agreement price and the payment obligations arising therefrom shall not be determined in foreign currency or foreign currency indexed”
- the Provisional Article 8 setting forth that “the prices previously determined in foreign currency as per the agreements in force executed prior to the Decree shall be revised between the relevant parties so as to be determined in Turkish Liras within thirty (30) days as from the effective date of the aforementioned article 4.g., except for the cases to be determined by the Ministry.”
have been adopted.
As you may have noted, in both clauses it is mentioned that the Ministry of Treasury and Finance is entitled to determine exceptions to such obligation.
As per our contacts with the Ministry, we have been informed that the details related to any eventual exception shall be clearer within the next days. Therefore, our Law
Firm shall follow-up the subject and keep you informed.