Financial Restructuring Framework Agreement Has Been Entered into Force by the Approval of Banking Regulation and Supervision Agency
Banking Regulation and Supervision Agency (“BRSA”) has announced to the public that Financial Restructuring Framework Agreement dated 11 September 2018 (the “Agreement”) which is drafted by the Banks Association of Turkey (“TBB”) and signed by the certain banks and financial institutions has been entered into force by the approval of BRSA in the Press Statement dated 19 September 2018 (the “Press Statement made by BRSA”).
Pursuant to the Regulation regarding the Restructuring of the Debts to Financial Sector which entered into force with its publication in the Official Gazette dated 15 August 2018 and numbered 30510 (the “Regulation”), it is aimed to provide reasonable conditions for the financial sector in order to fulfil the debtor firm’s reimbursement obligations in a reasonable process. In accordance with this purpose, it is foreseen that providing the receivables of the banks which are subjected to Banking Law numbered 5411 and the receivables of the other financial institutions will be restructured with the Financial Restructuring Agreement (“FYSS”). Within this scope, FYYS is discussed in general form by drafting the Agreement dated 11 September 2018 by TBB and related agreement is entered into force as of 19 September 2018 upon the approval of BRSA.
In the Press Statement of TBB dated 19 September 2018 (the “Press Statement made by TBB’’), it is announced that the Agreement has been signed by the banks that hold 90% of total credits and the other financial institutions, and the other banks and financial institutions shall sign the Agreement in a short while following the completion their ongoing internal processes.
The Agreement sets forth the provisions on (i) the general principles which are necessary to be complied regarding the qualifications of the companies which will exploit from restructure, (ii) required principles which are compulsory for the creditor institutions and protection of the overall position processes and the principles regarding monitoring criteria of binding agreements, (iii) the scope of the Agreement, (iv) the principles related with agreements which are signed between creditor institutions when it is considered necessary requirement for banks and trade debtors.
You may access the Turkish version of the Agreement by clicking here.
MORAL & PARTNERS
Duygu Bozkurt, Associate
Asu Motur, Trainee Lawyer
İlayda Gönlügür, Trainee Lawyer