Recent Developments In The Financial Restructuring Process In Turkey

I. Introduction and General Overview of the Current Financial Restructuring Rules

The concept of "financial restructuring," which may be defined as "the process of reorganizing the borrowing structure of a debtor" was set forth in Turkey through the Regulation on the Restructuring of Debts Owed to the Financial Sector, which was published in the Official Gazette No. 30510 on August 15, 2018 (amended with the Regulations on Amending the Regulation on the Restructuring of Debts Owed to the Financial Sector, published in the Official Gazette No. 30602 on November 21, 2018) ("Regulation"). The Regulation created an opportunity for the debtors to fulfil their repayment obligations and allowed them to restructure their debts through restructuring agreements executed within the scope of framework agreements ("Framework Agreement"), as drafted by the Banks Association of Turkey and approved by the Banking Regulatory and Supervisory Agency ("BRSA"), and regulating the