ERDEM-NEWSLETTER-2018-metin

249 LAW OF OBLIGATIONS property lease contracts concluded by the persons who are considered to be a part of these projects from the scope of the restriction. With regard to the transactions executed within the scope of Law on Public Financing and Debt Management No. 4749, the Communi- qué states that the restriction shall not be applied only to the contracts to which banks are parties, and it is now possible through the Amend- ing Communiqué to determine the payment obligations in a foreign currency, or in a manner indexed to a foreign currency, in all contracts concluded in relation to the transactions executed within the scope of this Law. Re-Determination Obligation In addition the clarifications regarding the exceptions of the re- determination obligation shown under the Provisional Article, the provision of the Communiqué, which stipulates that the parties subject to exemption may demand execution of the new contracts in Turkish currency, or the re-determination of the prices in contracts, which set forth the obligation to pay in current foreign currency, or indexed to a foreign currency, pursuant to the Provisional Article, is abrogated by the Amending Communiqué. Conclusion Pursuant to the amendment to Decree No. 32 dated 13 September 2018, it is prohibited to determine contract prices and other payment obligations arising from contracts that are in foreign currencies, or in a manner indexed to foreign currencies for the sale and purchase of movable and immovable properties, all kinds of movable and immov- able property lease contracts, including vehicle and financial leases, leasing contracts, employment contracts, contracts of service, and independent contractor contracts to be made between Turkish resi- dents. However some exceptions had been introduced to this foreign currency payment ban under Communiqué numbered 2018-32/51, published in the Official Gazette dated 6 October 2018. The Amend- ing Communiqué numbered 2018-32/52 aimed to clarify the scope of these exceptions and extended the framework of the said exceptions of the foreign currency payment ban.