Turkey | Brief overview of the amendments made in the restructuring regulation
26 November 2018
Client Alert | Turkey | Banking & Finance
The Banking Regulation and Supervision Agency (the "BRSA") amended the Regulation on the Restructuring of Debts Owed to the Financial Sector (the "Restructuring Regulation") on 21 November 2018.
The rationale behind those amendments principally lies in the concerns raised by the Turkish financial institutions and foreign lenders (both foreign banks and IFIs) within the past two months. Back in September, the Banks' Association of Turkey (the "Association") drafted its first framework agreement (the "Framework Agreement") in line with the recently enacted Restructuring Regulation, and a draft law was put in circulation for review/comments by market players in order to complement the legislative framework relating to financial restructuring. As the Restructuring Regulation and the Framework Agreement were both drafted from a Turkish lender perspective, both texts needed further modifications to address certain needs of foreign lenders. Accordingly, the BRSA made a number of modifications in the Restructuring Regulation to reflect the comments collected from market players so far, to further ease the implementation of the financial restructurings. It is now expected that the Framework Agreement will be also amended by the Association to comply with the recent amendments.
This Client Alert presents key changes which have been introduced with the recent amendments.
Please click on the PDF file below to read the full Client Alert.