Amendment On The Regulation On Restructuring Of Debts Owed To Financial Sector 22 November 2018

We would like to inform you of specific amendments made by the Regulation here below.

A. Debtors who will be able to benefit from financial restructuring process have been determined 
In accordance with the Regulation, the debtor means companies except for the following
·     Institutions which is included within the scope of Banking Law 
·     Investment enterprises, collective investment undertaking, independent auditing, valuation and rating institutions to be operated in capital market, portfolio management company, hypothecate finance company, housing finance and asset finance funds,  asset rental company, central settlement institutions, central custody institutions, data storage institutions, other capital market institutions  of which rudiments are determined by the Capital Market Board 
·     Institutions which are subject to the Insurance Law 
·     Institutions which are subject to the Leasing, Factoring and Finance Companies Law 
·     Institutions which are in scope of the Law on Payment and Security Consensus System, Payment Services and Electronic Money Institutions.
B. It is required to determine that debtor to be included within the scope of financial restructuring process will gain its solvency for repayment within reasonable time.
Despite the fact that the Regulation on Restructuring Debts Owed to Financial Sector required that debtors shall gain their solvency for repayment. However, the Regulation has required that this solvency of debtor shall be gained within reasonable time. The reasonable time has not been regulated under the Regulation and should be determined as per ad hoc case by evaluating of circumstances.
C. Financial status of debtors to be included within the scope of financial restructuring process shall be assessed by the institutions to be determined by framework agreements.
The Regulation on Restructuring Debts Owed to Financial Sectors required that the institution which will assess the financial status shall be approved by the Banking Regulation and Supervision Agency. In accordance with the Regulation, institutions to be determined in framework agreement are authorized to assess financial status without prior approval of the Banking Regulation and Supervision Agency.
D. Oversea credit institutions and international institutions can be included into the financial restructuring process.
As per to the Regulation, procedure and principles regarding inclusion to financial restructuring process of oversea credit institutions and international institutions shall be determined by framework agreement. Oversea credit institutions and international institutions can be included into the financial restructuring process, upon their request, without the approval of creditor institutions.
E. 2nd and 4th subparagraph of the article 9th of the Regulation on Restructuring Debts Owed to Financial Sector have been abolished
Subparagraph 2 which had regulated that the interest rate which is under the market interest rate shall not be applied and additional finance shall be provided to debtors included in the same risk group, and subparagraph 4 which regulates that contracted creditors shall not disclose debtor information which is deemed as customer secret one another or anyone save for competent authority and the agreement shall contain a provision in this regard or parties shall execute nondisclosure agreement, have been abolished.