By the London approach which was put into practice by
the lead of Bank of England in 1970 for the first time,
restructuring debts of the companies in financial crisis owed to
Financial Institutions has been carried out. During this
period, more than 160 companies participated in the restructuring
program in order to survive in the economic life. The
London approach was adopted by Mexico, Thailand, South
Korea, Indonesia and Malaysia later on.
In Turkey, however, as a result of businesses coming to a
standstill, increased interest rates and decreased new investments
due to the Economic Crisis began in 2000, it became
a requirement to carry out such an approach. At this
point, Framework Agreement on Financial entered into effect by
signatures of 25 banks and 18 financial institutions on 24.05.2002
which was prepared by The Banks Association of Turkey
("BAT") and which regulates restructuring conditions and
principles of negotiations between the creditor
institutions.1
