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ARTICLE · 27 FEBRUARY 2015

Hungry For More Investment

Kolcuoglu Demirkan Koçakli
Kolcuoglu Demirkan Koçakli
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Kolcuoglu Demirkan Koçakli

Kolcuoglu Demirkan Koçakli

The Firm Kolcuoğlu Demirkan Koçaklı (KDK) is an independent Turkish law firm advising domestic and...

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Being one of the world's most rapidly emerging countries, at least economically, Turkey has been adopting investment-friendly legislation for quite some time, in order to attract more (particularly foreign) investment.

TurkeyInternational Law

Being one of the world's most rapidly emerging countries, at least economically, Turkey has been adopting investment-friendly legislation for quite some time, in order to attract more (particularly foreign) investment. On the last day of 2014, Turkey enacted the new Regulation on the Principles and Procedures Applicable for Assumption of Treasury Guaranteed Obligations (the "New Regulation"). The New Regulation abolished the former Regulation on Treasury Guarantees of 2002 (the "Former Regulation") after 12 years.

Under the New Regulation, the primary liability for fulfilling obligations lies with the principal debtor, being the relevant Turkish administrative authority or state-owned entity in charge of a particular infrastructure investment project. The principal debtor will be obliged to (i) plan the repayment of debts (when due) guaranteed by the Treasury and (ii) reserve these amounts in its yearly budget with priority. Provided that the debtor reserves the

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