01 February 2023

Public Debt Structuring Package

On January 24, 2023, President Recep Tayyip Erdoğan announced the public debt restructuring package. Treasury and Finance Minister Nureddin Nebati also shared the details of the package in the “Meeting with the Business World” program in İzmir. If the draft law on the subject is approved by the parliament, the restructured debts can be paid in installments up to 48 months. In addition to administrative fines, other debts that will be subject to restructuring include public receivables that must be paid to tax offices, customs directorates, Social Security Institution, all municipalities, special provincial administrations and Investment Monitoring and Coordination Departments. Temporary taxes to be paid for 2022 are not covered. If the restructured debts are paid in advance, 90 percent of the interest will be discounted, and if the administrative fine is additionally 25 percent from the original receivable. Public debts not exceeding 2000 TL, which must be paid before 31 December 2022,