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ARTICLE · 11 JUNE 2021

Using Foreign Currency Loans From A Group Company As An Alternative Financing Source

Gün + Partners
Gün + Partners
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Gün + Partners

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The data of the Central Bank of the Republic of Turkey indicate that the private sector's loan debt from abroad and short-term loan debt in general, excluding commercial loans, have reached a level that will cause economic uneasiness.

TurkeyCorporate/Commercial Law

The data of the Central Bank of the Republic of Turkey indicate that the private sector's loan debt from abroad and short-term loan debt in general, excluding commercial loans, have reached a level that will cause economic uneasiness.

Due to economic fluctuations and the following pandemic, the financing needs of companies are increasing day by day. Companies may need to increase their capital in order to meet these financing needs, to evaluate their idle resources and to manage their funds effectively, if any. However, in cases where this is not possible due to economic conditions, companies may temporarily meet their financing needs thanks to the loans extended within the group, provided that the conditions stipulated in the legislation are met.

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