Foreign Currency Receivables Regarding Creditor Composition Agreements

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ISTANBUL HUKUK MECMUASI, vol.80, no.3, pp.819-846, 2022 (ESCI) identifier

  • Publication Type: Article / Article
  • Volume: 80 Issue: 3
  • Publication Date: 2022
  • Doi Number: 10.26650/mecmua.2022.80.3.0004
  • Journal Indexes: Emerging Sources Citation Index (ESCI)
  • Page Numbers: pp.819-846
  • Keywords: Composition With Creditors, Foreign Currency Debt&nbsp, Foreign Currency Receivable, Temporary Debt Respite, Notificationof Receivables, Set-Off Surety Contract
  • Anadolu University Affiliated: Yes


One of the basic rules to follow when collecting foreign currency receivables within the framework of enforcement and bankruptcy law regulations is to convert foreign currency receivables into Turkish lira. According to Enforcement and Bankruptcy Law Article 58 regulating the request to issue enforcement proceedings, the amount to be received regarding the issue of enforcement proceedings must be specified in Turkish currency. In addition, the exchange rate needs to be specified for the date the foreign currency receivable is requested. The obligation of claiming currency receivables in Turkish lira is also valid for bankruptcies. Collecting foreign currency receivables also differs in terms of creditor composition agreements. The accepted practice is to convert the foreign currency receivable into the Turkish currency in order to ensure equality among creditors and to offer to pay in Turkish liras for foreign currency receivables subject to creditor composition agreements. This study examines the views put forward in the doctrine about the exchange rate for foreign currency receivables subject to creditor composition agreements needing to be converted into the country's currency. The study also separately examines the status of foreign currency receivables in terms of application, respite, approval, and termination of creditor composition agreements. As a result of the examination, the study has reached the conclusion that converting foreign currency receivables in pre-bankruptcy creditor composition agreements in accordance with the exchange rate on the date the creditor composition agreement was approved would be appropriate.