Law and regulation of Covid-19 loan moratoriums in Turkey
07 Apr 2020
International
2 min read Comparable
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Description of the legislation
- Is there a moratorium on loans legislation implemented in your jurisdiction?
- If no: Are there any ongoing discussions regarding a potential introduction of such measures?
- What is the name of the relevant legislation (the “Relevant Act”)?
- What is the duration of the measures (period of moratorium)?
- Does the legislation provide for an extension of the period of moratorium?
- Is the moratorium mandatory, or can each borrower opt out should they wish to simply continue payments, or opt in if they want to be protected by the moratorium?
- Parties and agreements affected by the Relevant Act
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Impact on the loan agreements
- Is there a cut-off date with respect to loan agreements to which the Relevant Act will apply (e.g. not applicable to loan agreements entered into after the cut-off date)?
- Does the moratorium apply to principal only, or also to interest and/or fees?
- Will the maturity of the loan automatically be extended by the moratorium period?
- Are repayments and interest which have become due and payable under the contract before the Relevant Act has come into force covered by the moratorium?
- Will lenders be able to terminate a loan due to an event of default other than non-payment (e.g. breach of financial covenants)?
jurisdiction
1. Description of the legislation
1.1 Is there a moratorium on loans legislation implemented in your jurisdiction?
No.
1.2 If no: Are there any ongoing discussions regarding a potential introduction of such measures?
There are no ongoing public discussions at Government level, or word-of-mouth reports from credible sources, that might for the time being give rise to an interpretation that a moratorium is likely to be introduced in Turkiye.
