Türkiye’s 12th Judicial Reform Package: Civil Litigation Reforms Under Law No. 7589

Key changes to civil litigation in Türkiye under the Law No. 7589 brings significant change. The amendments particularly cover civil litigation, compensation claims, debt recovery and the calculation of statutory interest.

I. Introduction

The Law No. 7589 introduces significant changes to the civil litigation framework in Türkiye, particularly in relation to monetary claims, statutory interest, compensation claims and the conduct of civil proceedings. Key changes to civil litigation inTürkiye under the Law No. 7589 was adopted and announced in the  Official Gazette adopted on 16 July 2026 and published in the Official Gazette dated 31 July 2026 and numbered 33326.

II. What Changed in Turkish Civil Litigation Under Law No. 7589?

Law No. 7589 substantially reshapes civil litigation in Türkiye by abolishing unquantified debt actions, introducing a dynamic statutory interest regime and revising the calculation of interest in personal injury and loss-of-support claims. It also seeks to accelerate civil proceedings through shorter intervals between hearings and expanded participation via the e-hearing system. In addition, the Law introduces new monetary criteria governing appeals to the Court of Cassation. This article examines how the 12th Judicial Reform Package affects debt recovery, compensation calculations, procedural strategy and appellate review in Türkiye.

III. DETAILS OF 12th JUDICIAL REFORM PACKAGE

a. Has Turkey Abolished Unquantified Claim Actions? 

One of the most significant amendments is the removal of Article 107 of the Turkish Code of Civil Procedure No. 6100 [6100 sayılı Hukuk Muhakemeleri Kanunu in Turkish], which regulated unquantified debt actions [belirsiz alacak davası in Turkish].

Under the new paragraph to Article 109, claimants are expected to rely more heavily on the partial claim mechanism. Where only part of a receivable is initially claimed, the claimant may increase the amount only once and until the end of the evidentiary phase, without being subject to the prohibition on expansion of claims.

Importantly, the statute of limitations for the subsequently increased portion is also deemed to have been interrupted as of the original filing date.

Accordingly, pursuant to the relevant amendment, as of 31 July 2026, the date on which the law entered into force, it will no longer be possible to file an action for an unquantified claim [belirsiz alacak davası in Turkish]. However, in proceedings initiated before the effective date, the provisions governing actions for unquantified claims will continue to apply in their form prior to their repeal.

Therefore, claimants should exercise greater caution in documenting, quantifying and structuring their receivables before initiating litigation in order to preserve their rights under the new procedural framework.

b. How Is Statutory Interest Calculated in Turkey After Law No. 7589?

Law No. 7589 also changes the method for determining statutory interest.

Article 1 of Law No. 3095 on Statutory Interest and Default Interest is revised under the Law No. 7589 by regulating that where interest is payable pursuant to the Turkish Code of Obligations No. 6098  or the Turkish Commercial Code No. 6102, and the applicable rate has not been determined by contract, the annual interest rate shall be calculated at 80% of the rediscount rate applied by the Central Bank of the Republic of Türkiye to short-term credit transactions as of 31 December of the preceding year.

Where the rediscount rate applicable on 30 June differs by five percentage points or more from the rate applicable on the preceding 31 December, 80% of the rate determined on 30 June will apply for the second half of the year.

It necessarily follows that the  revision introduces a more dynamic and market-sensitive interest mechanism and may materially affect the value of commercial and contractual claims.

c. How Does Law No. 7589 Affect Personal Injury and Loss-of-Support Compensation?

The amendments also change the calculation of statutory interest in compensation arising from loss or reduction of earning capacity and loss of financial support following death. In that connection,

The following paragraphs have been added to Article 55 of the Turkish Code of Obligations No. 6098,

“With respect to losses arising from the reduction or loss of earning capacity, as well as losses suffered by persons deprived of the support of a deceased person, statutory interest shall accrue from the date of the tort or other event giving rise to the damage on the total amount of compensation calculated for the period during which the income of the injured person or the deceased supporter is known; whereas statutory interest shall accrue from the date of the judgment on the total amount of compensation calculated for the period during which such income cannot be determined.”

It means that

• For periods in which the injured person's or deceased supporter's income can be determined, statutory interest will generally run from the date of the tort or damaging event.
• For periods in which the relevant income cannot be determined, interest will instead run from the date of judgment.

That amendment will have a crucial influence upon personal injuries, traffic and workplace accidents and medical malpractice claims.

ç. What Are the New Hearing and E-Hearing Rules in Turkey?

One of the most significant amendments is the introduction into the Turkish Code of Civil Procedure No. 6100 of a new rule providing that the interval between hearings may not, as a general rule, exceed three months. A longer interval may only be set where required by the nature of the proceedings, such as prolonged expert examinations or procedural steps carried out through another court, and the judge must provide justification.

The 12th Judicial Reform Package also introduces a new rule concerning parties participating in hearings via the e-hearing system. Under the amendment, the statutory requirements applicable to handwritten signatures will no longer apply to procedural acts carried out through e-hearings, except in cases involving admission, oath, consent to withdrawal of the action, waiver of the claim, acceptance of the action, or settlement. This amendment also makes it possible for parties and their representatives to participate in preliminary examination hearings remotely via the UYAP, known as the e-justice system in Türkiye.

Having regard to the above, it becomes clear that the judicial amendment reveals a broader legislative objective of improving judicial efficiency and reducing unnecessary procedural delays.

e. What Are the New Court of Cassation Appeal Rules?

The 12th Judicial Reform Package introduces a new monetary criterion governing appeals to the Court of Cassation against decisions rendered by regional courts of appeal. Under the newly added paragraph 3 of Article 362 of the Code of Civil Procedure (Law No. 6100), where a regional court of appeal partially or fully accepts an appellate application and renders a new judgment on the merits, that judgment may be appealed if the value or amount of the part accepted or rejected exceeds the monetary threshold prescribed under Article 341/2 for appellate review, which is TRY 50,000 for 2026.

However, the amendment also introduces two limitations. First, where the new decision of the regional court remains below the general monetary threshold for the Court of Cassation and the difference between that decision and the first-instance judgment does not exceed the Article 341/2 threshold, no further appeal may be filed.

Second, a regional court decision falling below the Court of Cassation threshold cannot be appealed where it concerns solely litigation costs or attorney’s fees. The amendment therefore expands access to the Court of Cassation review in certain cases while preserving specific monetary and subject-matter limitations.

IV. What Does Law No. 7589 Mean for Foreign Companies and Creditors?

The amendments increase the importance of completing comprehensive legal and financial preparations before initiating proceedings. Since claimants will no longer be able to rely on the flexibility previously afforded by unquantified debt actions, the amount claimed should be determined as accurately as possible on the basis of the available documents and calculations, with a partial claim being filed where appropriate. As the amount claimed may be increased only once and before the close of the evidentiary phase, evidence must be submitted in a timely manner and the litigation strategy must be carefully formulated from the outset. The new rules governing statutory interest and compensation calculations will also require the reassessment of statements of claim, expert examinations and contractual interest provisions.

V. Conclusion

Key Changes to Civil Litigation in Türkiye under the Law No: 7589 aims at increasing efficiency and effectiveness of judicial mechanisms and norms governing civil claims. In this context, claimants and litigants should carefully analyze including:

• whether a claim should be filed as a partial claim; if so when and how the amount of the claim must subsequently be increased;
• the effect of the new rules on postponement of hearings;
• the applicable calculation method for statutory interest rate;
• the impact of the new compensation rules on damages calculations.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.