Communiqué on the Default Interest Rate to be applied for Late Payments and the Minimum Expense Amount that can be claimed for the Collection Costs of Receivables in the Supply of Goods and Services (the “Communiqué”) was published in the Official Gazette dated January 2, 2023 numbered 32061 and entered into force on January 1, 2023.
What Does the Communiqué Bring?
The Central Bank of the Republic of Turkey ("TCB") reduced the default interest rate to be applied in cases where the debtor is in default and the default interest rate is not stipulated in the contract or the default interest provision of the relevant contract is invalid under the 7th paragraph of Article 1530 of the Turkish Commercial Code No. 6102, from 17.25 to 11.75 per annum for the year 2023; and also increased the minimum amount of expenses that can be claimed for the collection costs of the receivable from 555,00 Turkish Lira to 800,00 Turkish Lira.
It is believed that the change made by the TCB to reduce the default rate is intended to prevent the debtor's default in payment from turning into a financing instrument for the creditor and to reflect the interest rate reduction policy it follows in the policy rate to the inflationary environment where the traders are located.
By Cerensu Cetin Yenigun, Senior Associate, and Deniz Yontuk, Associate, Moral, Kinikoglu, Pamukkale, Kokenek