In the last two decades, Turkish economic growth was supported by credit, especially foreign currency denominated funding. As of July 2019, total FX debt (long term and short term) owed by the private sector in Turkey was USD 211 billion (USD 103 billion is owed by financial institutions and USD 108 billion by the real sector). Following major fluctuations of TRY against USD in the beginning of 2018, Turkish companies with high FX exposure are now experiencing liquidity and solvency issues.
We prepared an extensive report on what needs to be cured on the legal and tax angles and proposal for a financial restructuring and NPL reform. We hope that you will find it useful.
For questions and comments, please feel free to contact one of the team members focused on these developments.
Esin Attorney Partnership
Full report here
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