Recent Development
The Ministry of Treasury and Finance
("Ministry") published on its website an
Announcement on Contract Amounts in Foreign
Exchange ("Announcement") on October 13,
2020. The Announcement concerns foreign currency lease agreements
that were converted into Turkish lira according to the Presidential
Decree No. 85 published on September 13, 2018
("Decree").
What Does the Announcement Say?
The Ministry's Communiqué No. 2008-32/34 on the
Decree No. 32 Regarding the Protection of the Value of the Turkish
Currency ("Communiqué") set forth
the principles for converting the rents of residential and
workplace leases in foreign exchange into Turkish lira. In
addition, it addressed the adjustment of these rents during the
two-year transition period of October 13, 2018 to October 13, 2020
for parties that could not reach an agreement. The
Communiqué did not elucidate how the adjustment would be
made after October 13, 2020.
