Turkey: Certain credit debts of traders and artisans injured by the Covid-19

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The Presidential Decree (“Decree”) published in the Official Journal of 04.02.2021 and numbered 31385 regulates the procedures and principles concerning the deferral of debts resulting from low-interest loans used with the guarantee of the Credit and Guarantee Cooperatives of Traders and Craftsmen (“TCCGC”) or directly from HalkBank, by traders and artisans whose businesses are economically damaged due to COVID-19 and who operate throughout Turkey under the Central Union of Credit and Guarantee Cooperatives of traders and artisans from Turkey. The aforementioned decision entered into force on the date of its publication, with effect from
01.01.2021. The provisions regulated by the presidential decree are as follows:

  1. Deferral of credit debts

Debts resulting from low interest rate loans used by traders and artisans with the guarantee of TCCGC or directly with Türkiye Halk Bankasi on 12.31.2020 or earlier, and those which cannot be collected on the Due Date due / Due date of the partial payment / Fiscal period and which do not yet fall within the scope of receivables to be liquidated and those which will fall due between the dates of 01.01.2021 and 30.06.2021 and which will not be reimbursed to 04.02.2021 from 01.01.2021, will be deferred and spread over the remaining maturity date mentioned in the loan repayment table, without any modification of the number of installments determined at the start of the due date / of the due date of the partial payment / fiscal period by accumulating interest in accordance with applicable law in the due period. Date / Partial payment due date / Fiscal period without requiring a request.

During the suspension period, the portion of the main down payment / principal debt and the interest to be accrued on traders and craftsmen in accordance with the related decisions and the tax on banking operations and related insurance.

The traders and artisans undertake not to reduce their number of employees during the suspension period. Otherwise, they are excluded from the scope of the carry-over provisions.

Losses of income calculated during the deferral period will continue to be paid by the Ministry of Treasury and Finance.

No enforcement proceedings will be initiated for deferred loans from 02.04.2021 until the end of the suspension period.

Within the framework of the relevant decisions regarding the use of reduced rate loans on demand, Türkiye Halk Bankasi may open a reduced rate loan within the period of on request and the provisions preventing the opening of loans will not be applied.

You can access the full Turkish version of the Presidential Decree via the link below:


The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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