Changes To Prepayment Fee Limits

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Article 11 of the Communiqué No. 2020/4 on the Procedures and Principles Regarding Fees That Banks Can Charge to Corporate Clients ("Communiqué"), which regulates the prepayment fee, is amended.

Turkey Finance and Banking

Muhsin Keskin and Umur Güçlü

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Recent Developments

Article 11 of the Communiqué No. 2020/4 on the Procedures and Principles Regarding Fees That Banks Can Charge to Corporate Clients ("Communiqué"), which regulates the prepayment fee, is amended.

What's New?

The prepayment fee that banks can charge for the prepayment of foreign currency and foreign currency indexed loans will increase by one basis point, compared to prepayment fees for Turkish lira loans.
The amendment also abolishes the prohibition to charge prepayment fees in case of variable interest loans.

Conclusion

The lawmaker is clarifying several points that have been the center of debate prior to the entry into force of the major items of the Communiqué.

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