With the commercial tensions between China and the US as well as the economic contraction and exchange rate fluctuations around the world, companies have left a difficult year behind. The Banks Association of Turkey taken by force Financial Restructuring (FYY) application, companies can restructure their loans without declaration concordatum.
*** This release is originally published in Turkish.
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ISTANBUL (TR) - Banks Association of Turkey (TBB) has taken effect by the Financial Reconstruction (FYY) companies with applications that can restructure their debts without declaring bankruptcy certificate. Large-scale companies with debts of more than TL 25 million to banks and financial institutions will be able to benefit directly from this application. Companies with credit debts below TL 25 million will be included in the implementation only after the necessary approvals. Companies with definite bankruptcy decisions will not benefit from Financial Restructuring. With the implementation, the debts are secured against bankruptcy, while the credit effect of creditors will be prevented by a domino effect.
The longest maturity of the debts under TL 25 million will be 60 months. Up to 12 months of principal and interest-free period can be given. Payment frequencies will vary according to sectors.
Stating that the new application will enable borrower companies to fulfill their repayment obligations and continue their production, investment, and employment activities, Universal Partners' Executive Board Member Mustafa Köksoya said, “Financial Restructuring is vital for companies to fulfill their obligations. This application will benefit the debtor companies as well as the collecting companies in order to maintain their existence. In this way, economic growth will be supported and serious losses can be prevented. ”
With the FYY application, which came into force with the Provisional Article 32 of the Banking Law No. 5411, banks, financial leasing companies, factoring companies and companies that borrow loans to finance companies will be provided to fulfill their payment obligations through measures to be taken within the scope of agreements and contracts.
Mustafa Köksoya stated that the companies should keep their financial processes under strict control since the establishment stage and said, için In order for companies to maintain their existence, there should be a system in which the income and expense balance is set up correctly and the payments and receivables are managed effectively. Companies whose financial structure is deteriorated should manage the process very well. There was a negative perception in the public opinion against companies trying to achieve fiscal discipline by declaring concordat. With the implementation of Financial Restructuring, both this perception will be eliminated and financial discipline will be ensured.
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