ERDEM-NEWSLETTER-2018-metin

243 LAW OF OBLIGATIONS Amendments to the Communiqué on Decree No. 32 on the Protection of the Value of Turkish Currency* Att. Verda Toy Introduction The Communiqué on Decree No. 32 on the Protection of the Value of the Turkish Currency (Communiqué No. 2008-32/34) (“Communi- qué”) that regulates the details of the restriction on payments made in foreign currency, or in a manner indexed to a foreign currency, pursu- ant to Decree No. 32 on the Protection of the Value of the Turkish Currency (“Decree No. 32”), has been amended again through Com- muniqué No. 2018-32/52 (“Amending Communiqué”), which was entered into force through its publication in the Official Gazette dated 16 November 2018 and numbered 30597. This Article explains the new regulations set forth under the Amending Communiqué. Scope of Application of the Foreign Currency Ban Pursuant to Article 4(g) of Decree No. 32, which had been added on 13 September 2018, Turkish residents cannot determine a contract price, nor other payment obligations (such as interest, damages for delay or penal clauses) arising from the contracts to be in foreign currency, or in a manner indexed to a foreign currency, in contracts for the sale and purchase of movable and immovable properties, all kinds of movable and immovable property lease contracts, including vehicle and financial leases, leasing contracts, employment contracts, contracts of service, and independent contractor contracts. The said provision set forth that the Ministry of Treasury and Finance has the authority to determine exceptions to above-noted foreign currency payment ban. * Article of November 2018