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Default Interest Rates for Commercial Transactions are Updated

Default Interest Rates for Commercial Transactions are Updated

With the Communiqué Amending the General Communiqué of the General Directorate of Accounting (No: 80) (Monetary Limits and Rates) (No: 82) ["Amending Communiqué"] [available only in Turkish] published in the Official Gazette dated 22.7.2023 and numbered 32256, the default interest rate to be applied in commercial transactions has been increased to 16.75% as of 1.7.2023.

Interest Rates for 2023

The legal interest and default interest rates to be applied in 2023 as of 1.1.2023 were determined with the General Communiqué of the General Directorate of Accounting (No: 80) (Monetary Limits and Rates) published in the Official Gazette dated 9.3.2023 and numbered 32127. Accordingly, the legal interest rate and default interest rates to be applied in case they are not contractually agreed upon were determined as 9% while the default interest rate to be applied in commercial transactions was set at 10.75%.

With the Amending Communiqué:

  • the above-mentioned interest rates will only apply between 1.1.2023 - 30.6.2023;
  • as of 1.7.2023, the legal interest rate and default interest rate will continue to be applied at 9% without any change;
  • between 1.1.2023 - 30.6.2023, the default interest rate for commercial transactions will be 10.75%, and
  • as of 1.7.2023, the default interest rate in commercial transactions is revised as 16.75%

Accordingly, pursuant to the Turkish Code of Obligations No. 6098 ["TCO"] art. 88, the maximum annual interest rate that may be agreed in the contract remains unchanged at 13.5%, and pursuant to TCO art. 120, the maximum default interest rate that may be agreed in the contract remains at 18%. However, the default interest rate in commercial transactions as of 1.7.2023 has been increased from 10.75% to 16.75%.