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ARTICLE · 30 MAY 2024

How Will The New Statutory Interest Rate Be Applied In Legal Proceedings?

KECOS
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In accordance with the Law No. 3095 on Lawful Interest and Default Interest ("Law") in instances where no contractual interest rate exists between parties...

TurkeyLitigation, Mediation & Arbitration
Ece Ergün
Ece Ergün
Ege Aymelek
Ege Aymelek
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In accordance with the Law No. 3095 on Lawful Interest and Default Interest (“Law”) in instances where no contractual interest rate exists between parties, lawful interest should be applied. From January 1, 2006, the lawful interest applied as 9% per annum. 

According to the Presidential Decree No. 8485 issued on May 20, 2024 (“Decree”), the annual legal interest rate has been revised 24%, effective from June 1, 2024. 

Following the Decree, there is no controversy regarding the legal interest rate to be applied for legal proceedings initiated after June 1, 2024. However, a question arises regarding the determination and calculation of the legal interest rate for legal processes initiated before this date. The answer to this question can be elucidated by examining the decisions of the Court of Cassation concerning disputes arising after changes in legal interest rates in previous years1

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