Increase in Default Interest Rate and Minimum Collection Cost Amount!

The annual default interest rate and the minimum amounts that can be claimed due to costs for collecting receivables have been increased effective from January 1, 2024, as per the Communiqué on the Default Interest Rate to be Applied in Late Payments in the Supply of Goods and Services and the Minimum Expense Amount that can be Claimed for the Collection Costs of Receivables ("Communiqué") published in the Official Gazette dated January 2, 2024 and numbered 32417 by the Central Bank of the Republic of Turkey. 

Accordingly, the annual default interest rate that is applicable in cases where the default interest rate for overdue payments to be made to a creditor in the supply of goods and services in accordance with the Turkish Commercial Code No. 6102 is not stipulated in the contract or the relevant provisions are invalid, has been increased from 11.75% to 48%; and the minimum amount that can be claimed for the collection costs of receivables has been increased from TRY 800.00 to TRY 1,310.00.