Term Of The Financial Restructuring Process Has Been Extended For 2 Years

Effectiveness of provisional article 32 of the Banking Law, regulating the financial restructuring process, has been extended for two more years pursuant to Presidential Decree numbered 4299 and dated 14 July 2021, published in Official Gazette numbered 31542 on 15 July 2021.

With this extension, the term of the regulations which entered into force in 2019 and forming the legal basis of the financial restructuring process, has been extended until 2023.

Notable provisions of the provisional article 32 include:

• Banks, leasing companies, factoring companies and financing companies, which are operating in Turkey, and debtors, who have a credit relationship with other financial institutions defined within the scope of the related legislation and determined in the framework agreements prepared in accordance with the regulation issued by the Banking Regulatory and Supervisory Authority, may be subject to partial or total financial restructuring process with other