Loan Debts of Tradespeople and Artisans Whose Businesses Were Harmed Due to Coronavirus Have Been Deferred
The loan debts of tradespeople and artisans operating throughout Turkey whose businesses were harmed due to the coronavirus pandemic, falling within the scope of decisions regarding low-interest lending by Turkiye Halk Bankasi A.S. through the guarantee of tradespeople and artisans credit and surety cooperatives that are members of regional unions affiliated with TESKOMB, or directly, have been deferred.Under Presidential Decree No. 2283, dated 25.03.2020, the loan debts of tradespeople and artisans arising from low-interest loans they obtained on March 31, 2020 and earlier, with maturities falling between April 1 - June 30, 2020, were deferred interest-free for a period of three months from the maturity date/installment date/accounting period, with interest accruing on the maturity date/installment date/accounting period in accordance with the relevant legislation. The decree, which will enter into force on April 1, 2020, provides that:1- A commitment letter will be obtained from tradespeople and artisans whose loans are deferred, stating that they will not reduce their number of employees during the deferral period.If a reduction in the number of employees is detected, the relevant tradespeople and artisans will be excluded from the scope of the deferral.2- Low-interest loans may be extended to tradespeople and artisans whose debts are deferred during the deferral period.In the event that tradespeople and artisans whose debts are deferred request low-interest loans, the provisions that prevent extending loans to those with debts subject to deferral shall not apply, and low-interest loans may be extended by the bank during the deferral period within the scope of the relevant decisions regarding low-interest lending.3- No enforcement proceedings may be initiated for the deferred loans from the date of publication of the decree until the end of the deferral period.However, the deferral of loan debts will not cause the termination of material and personal guarantees, nor will the liability of joint debtors and joint and several sureties end.4- The bank's revenue losses will be covered from the appropriation allocated for this purpose by the Ministry of Treasury and Finance.The bank's revenue losses arising from deferred loans will be calculated taking into account the current loan interest rate applied by the bank for tradespeople and artisan loans. The bank will submit the information regarding the deferred loans under this decree and the estimated revenue loss amounts calculated up to the end of the maturity/accounting period/installment date to the Ministry of Treasury and Finance on a monthly basis. The finalized revenue loss amounts of the bank, calculated up to the end of the maturity/accounting period/installment date according to its own records regarding the deferred loans, will be covered from the relevant appropriation following submission to the Ministry of Treasury and Finance in the notified format each month.For the full text of the decree, click here.For the legal aspects, legislation, and latest developments regarding the Coronavirus Pandemic, click here.Trainee Atty. Kevser TURAN
