New Amendments To The Financial Restructuring Regulation

Recent Developments

The Banking Regulatory and Supervisory Authority (the "BRSA") amended (the "Amendment") to the Regulation on the Restructuring of Debts Owed to the Financial Sector (the "Regulation").

The Amendment entered into force with its publication on the Repeating Official Gazette No. 30886/1 dated September 12, 2019.

What's New?

• The Amendment brings the Regulation in line with Provisional Article 32 of the Banking Law No. 5411 (the "Provisional Article"), which entered into force earlier this year and is the basis for financial restructurings.
• In accordance with the Provisional Article, the definition of "creditor" also includes non-resident banks and other financial institutions that directly extended loans to a Turkish resident borrower; multinational banks and institutions that directly invested in Turkey; SPVs established by these institutions to collect receivables; and investment funds established for this purpose.