Article 8 of the Communiqué numbered 2008-32/34 regarding Decree No.32 on the Protection of the Value of Turkish Lira (the “Communiqué”) setting forth provisions regarding agreements denominated in foreign currency or indexed to foreign currency has been amended with the communiqué numbered 2022-32/66 amending the Communiqué. The respective amendment has been published on the Official Gazette dated 19 April 2022 and entered into force on the same date.

Before the above-mentioned amendment, the Communiqué allowed for purchase price or other payment obligations provided in the movable sales agreements executed between Turkish residents, other than the ones concerning sale of vehicles, to be denominated or indexed to in any currency other than Turkish Lira and paid in foreign currency. By virtue of newly introduced paragraph 9 of Article 8 of the Communiqué, even though it would still be possible to denominate or index the contractual payment obligations of moveable property in any currency payments will need to be effectuated only in Turkish Lira.

The new rules will be applicable to all Turkish real and legal persons, including all companies incorporated in Turkey regardless of the fact that if some or all of its shares are directly or indirectly owned by non-Turkish shareholders.

We have published a new Paksoy briefing: “Amendments to the Communiqué regarding Decree No.32 on the Protection of the Value of Turkish Lira”. You can reach the briefing here.