Pursuant to the first paragraph of Provisional Article 32 of the Banking Law No. 5411 ("Banking Law"), it was stipulated that the financial restructuring practice would be applied for a period of two years as of its initial publication date; however, it was also regulated that this period could be extended for an additional two years by a Presidential Decision.
With Presidential Decision No. 10765, published in the Official Gazette dated 25 December 2025 and numbered 33118 ("Decision"), the application period of the financial restructuring mechanism applied to loans extended to companies within the scope of Provisional Article 32 of the Banking Law has been extended for a further two years, effective as of 28 December 2025.
Provisional Article 32 of the Banking Law aims to enable debtors to fulfill their repayment obligations and to continue contributing to employment, through measures to be taken with respect to loans extended to the debtors regulated under this article. Within this scope, debtors may be subject to financial restructuring, either as a whole together with other debtors within their risk group or partially.
Pursuant to the said article, the procedures and principles regarding financial restructuring to be carried out are determined by framework agreements prepared in accordance with the provisions of the regulation issued by the Banking Regulation and Supervision Agency and executed between the debtor and the creditor institutions.
You may access the Decision here.
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.
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