ERDEM-NEWSLETTER-2018-metin

251 LAW OF OBLIGATIONS certain issues introduced by the Decree and provided for various ex- emptions. This Newsletter article explains the contracts within the scope of Article 4/g of the Decree, and the effects thereof on the existing contracts. Contracts of Turkish Residents amongst Themselves The paragraph added to the Decree brings restrictions to contract prices and other payment obligations in the contracts of “Turkish resi- dents” entered into “amongst themselves.” Pursuant to paragraph (20) of the Communiqué, Turkish residents’ branches, offices, representa- tive offices and liaison offices located abroad, overseas funds operated or managed by Turkish residents, overseas companies in which Turk- ish residents have 50% or more ownership, and overseas companies that are directly or indirectly under the ownership of Turkish residents, shall be deemed to be “Turkish residents” within the scope of Article 4/g of the Decree. Contracts within the Scope of the Decree and Exemptions It is stated under the Decree that the contract price and other payment obligations arising from the contracts that are within the scope of the Decree cannot be made in foreign currency, nor in any manner indexed to foreign currency. Accordingly, the Decree covers not only the contract price, but also any interest, damages for delay, penal clauses, and all kinds of indemnity obligations applicable to the relevant contracts. In addition, pursuant to Article 8/18 of the Com- muniqué, amounts on the negotiable instruments (kıymetli evrak) to be issued within the scope of the contracts covered under the Decree cannot be denominated in foreign currency. Pursuant to Article 8/19 of the Communiqué, contracts indexed to precious metals and/or commodities, the values of which are deter- mined in foreign currency in international markets, and/or contracts indexed indirectly to foreign currency, are deemed as contracts indexed to foreign currencies within the scope of Article 4/g of the Decree.