2/28/2023

Türkiye Announces New Regulations Following Earthquake

​​​Following the two massive earthquakes in southeast Türkiye, the Ministry of Treasury and Finance announced a series of regulations to ease financial conditions in the region and reduce negative effects of the disaster. Accordingly, earthquake-affected citizens will receive a short-term working allowance based on the applications of employers. Citizens who do not meet the criteria for the short-term working allowance will be eligible for financial assistance.

Additionally, the obligations of 671,000 active taxpayers in the earthquake zone were postponed until the end of July. Tax debts owed by earthquake victims will be paid in interest-free installments for up to 24 months.

The Ministry also announced that the Banking Regulation and Supervision Agency (BDDK), the regulatory body for the Turkish banking sector, had taken new measures to provide flexibility for earthquake victims' debts and obligations.

Accordingly, the previously set maturity dates for vehicle and consumer loans for earthquake zone residents will be postponed.

The limits that banks consider for determining card limits will be increased. In the first year, the total card limit will be four times the person's monthly average net income, rising to eight times in the second and subsequent years. The minimum monthly repayment ratio will be reduced to 20 percent of current debt, regardless of credit card limit.

Furthermore, credit card installment terms will be reduced by up to onefold in credit card sales of goods and services to member businesses in the earthquake zone.

If the monthly or annual average income cannot be assessed, the credit card total limit will be raised from TRY 2,000 to TRY 5,000.

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Türkiye; Earthquake; Ministry of Treasury and Finance; Banking Regulation and Supervision Agency (BDDK)