Under Article 241 of Turkish Criminal Law No. 5237
("TCL"), lending for the sake to gain profit is
forbidden. However, in practice, for the purpose of financing
affiliated companies, intragroup loans are a frequently employed
method.
The intention is to eliminate such prohibition as foreseen under
the TCL, through an amendment to be introduced to Additional
Article 1 of Law on Financial Leasing, Factoring and Financing
Companies No. 6361 ("Law on Financing Companies"),
through the Legislative Proposal on Amendments on Certain Law and
Decree Laws dated 30.11.2018 and numbered 2/1369 ("Legislative
Proposal").
Under this Article, the current legal status of intragroup
loans, and the status to be construed through the Legislative
Proposal, are evaluated.