The Undersecretariat of Treasury has effected amendments to the Regulation on the Procedure and Principles of Obtaining External Financing within the scope of Law No. 4749 (the "Regulation"). The amending regulation was published in the Official Gazette numbered 30404 dated 27 April 2018 (the "Amending Regulation").
The Regulation previously provided that companies who failed to perform reporting and coordination duties in the scope of any financing under the Regulation would be subject to the highest applicable lending and guarantee charges for any future Regulation-financing.
The Amending Regulation has removed this mechanism entirely. However, the administrative fines set out in the Regulation will remain applicable on failure to perform and comply with duties under the Regulation.
The Amending Regulation has entered into force on the date of its publication and will apply to Regulation-financings provided after this date. However, entities that have applied to the Treasury within 10 days following the Amending Regulation will be able to claim the benefit of the changes for their current Regulation-financings.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.