Recent Changes to the Decree No. 32 on Protection of the Value of Turkish Currency

17 Sep 2018

Decree No. 32 regarding the Protection of the Value of the Turkish Lira has been amended with the enactment of the presidential decree numbered 85 (“Decree No.85”) published and announced in the Official Gazette of 13th of September, 2018.

According to the Decree No.85, residents in Turkey (real persons residing in Turkey and legal entities registered in Turkey) cannot agree contract price and any other payment liabilities arisen from purchase and sale of movable and immovable properties, lease of all kinds of immovable and movable properties including vehicle and financial leasing, employment contracts, service agreements and contracts of work in foreign currency or indexed to foreign currency unless otherwise is determined by the Ministry.

The prices determined under the above mentioned agreements denominated in foreign currency under existing agreements are required to be re-determined into to Turkish Lira within 30 days, unless otherwise is determined by the Ministry. No further provision in regards to the procedure and guideline on how to re-determine and agree the Turkish Lira equivalent of such contract prices is determined under the Decree No.85 and a separate Decree is expected to be executed by the Ministry within this period.