In Cukurova Finance International Ltd v Alfa Telecom Turkey Ltd [2013] UKPC 2, the Privy Council held that a borrower may claim relief from forfeiture notwithstanding that the forfeited security has been appropriated by the lender in satisfaction of a debt.
American and British directors of corporations should be mindful of the different standards of conduct, obligations, and potential personal liability when holding directorships in Turkish companies, particularly if such companies’ financial situation is deteriorating.
Turkish corporates have increasingly utilised international debt markets in the last decade, particularly in the infrastructure and energy sectors. These corporates are now under pressure due to recent political instability and depreciation of the Turkish lira. Restructuring candidates in 2014 have included Yuksel, the construction company which was last in discussions with bondholders and local lenders mid-year. Below we take a look at key legal issues for loan traders in Turkey.
Turkey has amended and clarified the requirements for collecting public receivables. Changes particularly apply to obtaining documents to show an overdue debt, calculating the limitation period, as well as deleting records. Further explanatory information is also provided for existing requirements.
The Ministry of Finance-Revenue Administration published the General Communiqué regarding Collection of public receivables in Official Gazette number 29686 on 16 April 2016.
Key changes introduced by the amendments include:
Recent development
Recent Development
On July 31, 2016, the Council of Ministers issued the third executive order on the implementation of the current state of emergency ("Executive Order"). The Executive Order amends several laws and regulations; discharges certain members of the military linked to the Fethullah Terrorist Organization (FETO); establishes a national defense university; introduces rules related to the education system of the members of the military; and prohibits the implementation of the bankruptcy suspension mechanism for companies.
Recent development
Seeking to ensure that the market has sufficient available liquidity following the recent political and economic developments in Turkey, the Central Bank of Turkey (the "Central Bank") reduced the Turkish banks' reserve requirements for Turkish lira liabilities on August 10, 2016. The changes will take effect on August 12, 2016.
New TRY reserve requirements
The Central Bank has reduced the reserve requirement ratios for banks' Turkish Lira ("TRY") liabilities by 50 basis points for each maturity bracket:
Maturity New Ratios Previous Ratios
The Law Amending Certain Laws for the Purpose of Improvement of the Investment Environment, Law No: 6728 has been published in the Official Gazette dated 9 August 2016 and numbered 29796 (“Amending Law”). It amends several laws including the (i) Stamp Duty Law No: 488, (ii) Law of Fees No: 492, and (iii) provisions of the Turkish Commercial Code Law No: 6102 on the incorporation of entities. With these amendments, the Turkish government aims to reduce the cost of foreign direct investment in Turkey.
Цього року набув чинності Кодекс України з процедур банкрутства, який вже у жовтні повинен змінити правила, за якими розглядаються справи про банкрутство. Чи не найбільш обговорюваною новелою Кодексу є запровадження процедури банкрутства фізособи. До цього законодавство України не знало такої процедури, як банкрутство звичайного громадянина.
Нова процедура банкрутства фізичної особи може бути корисною як кредиторам (в основному це банки та інші фінансові установи, які раніше активно кредитували фізичних осіб), так і боржникам, які мають непогашені кредити.
On 21 October 2019, the Code on Bankruptcy Procedures adopted by Ukraine’s parliament on 18 October 2018 (“the Code”) came into effect. The Code replaces the Act of Ukraine on Renewal of Debtor’s Solvency or Declaring It Bankrupt dated 14 May 1992 that applied previously. The Code has sparked controversy in Ukraine and until the last moment there were discussions whether its entering into effect should be postponed until a later date.
Launch of insolvency proceedings