NEWSLETTER-2019-metin

Thoughts about Restrictions imposed on Contracts in Foreign Currency in the Example of Contract for Work including Costs in Foreign Currency* Prof. Dr. H. Murat Develioglu Introduction In the Communiqué (Communiqué No. 2018-32/51) regarding the Amendment of the Communiqué on Decree No. 32 on the Protection of the Value of the Turkish Currency (Communiqué No. 2008-32/34) published in the Official Gazette dated 6 October 2018 and numbered 30557, and the Communiqué (Communiqué No. 2018-32/52) regard- ing the Amendment of the Communiqué on Decree No. 32 on the Protection of the Value of the Turkish Currency (Communiqué No. 2008-32/34) published in the Official Gazette dated 16 November 2018, albeit partially, the application area of the ban on contracting in foreign currency amounts was changed. Pursuant to these amend- ments, many problems arose regarding the fate of the contract amend- ments made in accordance with Communiqué No. 2018-32/51 at the time of the entry into force of both Communiqués. An Example to the Amendment made in the Communiqué In order to give an example of the amendments that caused is- sues, which are set out, below, paragraph 6 of the cancelled Article 8 of Communiqué on Decree No. 32 on the Protection of the Value of the Turkish Currency, as amended by the first Article of Communi- qué numbered 2018-32/51, titled “Contracts in Foreign Currency or Foreign Currency-Indexed Contracts,” on contracts for work, makes a regulation as “ Turkish residents cannot determine a contract price and other payment obligations arising from the contract to be in foreign currency, or in a manner indexed in a foreign currency in contracts for * Article of January 2019