The Presidential Decree ("Decree") published in the Official Gazette dated 04.02.2021 and numbered 31385 regulates the procedures and principles regarding the deferral of debts arising from low-interest loans used with the guarantee of Tradesmen and Craftsmen Credit and Guarantee Cooperatives ("TCCGC") or directly from HalkBank, by the tradesmen and craftsmen whose businesses are economically damaged due to COVID-19 and who are operating throughout Turkey under the Turkey Tradesmen and Craftsmen Credit and Guarantee Cooperatives Central Union. The aforementioned decision entered into force on the date of publication, effective as of 01.01.2021. The provisions regulated by the Presidential Decree are as follows:
- Deferral of Credit Debts
Debts arising from low-interest loans used by tradesmen and craftsmen with the guarantee of TCCGC or directly from Türkiye Halk Bankasi on 31.12.2020 or a prior date, and those that cannot be collected on Due Date / Partial Payment Due Date / Fiscal Period and which are not yet included in the scope of receivables to be liquidated and those that will become due between the dates of 01.01.2021 and 30.06.2021 and are not redeemed as of 04.02.2021 effective from 01.01.2021, shall be deferred to and spread through the remaining due date referred to in the loan redemption table, without any changes in the number of installments determined in the starting of the Due Date / Partial Payment Due Date / Fiscal Period by accruing interest in accordance with the relevant legislation in the Due Date / Partial Payment Due Date / Fiscal Period without requiring an application.
During the deferral period, the portion of the installment / principal debt and the interest to be accrued on the tradesmen and craftsmen in accordance with the relevant decisions and the related bank and insurance transactions tax shall be added equally to the remaining installments.
Tradesmen and craftsmen shall undertake that they will not reduce their number of employees during the deferral period. Otherwise, they shall be excluded from the scope of the deferral provisions.
The revenue losses calculated during the deferral period will continue to be paid by the Ministry of Treasury and Finance.
Enforcement proceedings shall not be initiated for the deferred loans from 04.02.2021 until the end of the deferral period.
Within the scope of the relevant decisions regarding the use of low-interest loans on demand, Türkiye Halk Bankasi may open a low-interest loan within the deferral period upon request and the provisions preventing the opening of loans shall not be applied.
You may reach the full Turkish version of the Presidential Decree via the link below:
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.