Central Bank Changed Prepayment Fees

Recent developments

The Communiqué Amending the Communiqué No. 2020/4 on the Procedures and Principles Regarding Fees that Banks Can Charge Corporate Clients (the "Communiqué") was published in the Official Gazette dated June 28, 2024 and entered into force on July 1, 2024 (the "Amending Communiqué").

You can access the Amending Communiqué here.

What's new?

The Communiqué stipulated that if the corporate client requested prepay for the aggregate amount of the loans, the bank was obliged to accept this request, and in this case, a prepayment fee to be calculated over the aggregate amount of the loans that are prepaid by making the necessary deductions for interest and other costs. Accordingly, different rates were determined for this calculation, depending on (i) whether or not the remaining maturity of the loan exceeds twenty-four months, and (ii) whether the loan is denominated in Turkish lira or foreign currency or indexed to foreign currency.