The Decree on the Amendments to the Decree No. 32 on Protection of the Value of Turkish Currency has been published.
The Decree on the Amendments to the Decree No. 32 on Protection of the Value of Turkish Currency (the “Amending Decree”) has been published in the Official Gazette dated 13 September 2018 and numbered 30534 and entered into force starting from its publication date.
With the publication of the Amending Decree, an amendment is enacted on the article titled “the Currency” of the Decree No. 32 on the Protection of the Value of the Turkish Currency (the “Decree”). Pursuant to the Amending Decree, the property sales and rental agreements must be made in Turkish lira, putting an end to such deals in foreign currencies, in a fresh step to support the delicate local currency.
In this context, it is indicated that only in cases stipulated by the Ministry of Treasury and Finance (the “Ministry”), the residents of Turkey may determine contract value and other additional contractual payments in foreign currency or indexed foreign currency set forth in agreements such as real estate purchase and sales agreements; every kind of lease agreement including vehicle and finance leasing; business; labour and service agreements otherwise, the parties shall not determine the contract value and other additional contractual payments in foreign currency or indexed foreign currency. It should be noted that; the cases stipulated by the Ministry are not mentioned in the Amending Decree and it is expected to be announced to the public with additional legislation or Ministry decision to be issued.
With the Amending Decree, related to the amendment mentioned above, it is indicated that except for the situations stipulated by the Ministry, the concluded agreements determining contract value or other additional contractual payments in foreign currency or indexed foreign currency, which are still in force, must be adapted to Turkish currency within 30 (thirty) days of the effective date which is until 13 October 2018.
The scope of regulations in accordance with the Amending Decree and detailed information related to stipulated provisions and conditions will be stated by additional regulations and Ministry decisions.
Please find the full Turkish text of the Amending Decree from here.