The consequences of a default in the supply of goods and services between merchants is regulated by special provisions under Article 1530 of the Commercial Code 6102.

The Central Bank determines and announces each January the default interest to be applied where parties fail to agree on the default interest in an agreement or when an agreement among parties on default interest is or becomes invalid. According to the Central Bank's announcement in the Official Gazette on 2 January 2019, default interest has been set at 21.25% as of 1 January 2019, compared with 10.75% in 2018.

For further information on this topic please contact Asli Tezcan or Gamze Güngör at Acar & Ergonen Law Firm by telephone (+90 212 358 07 00) or email (aslit@acarergonen.av.tr or gamzeg@acarergonen.av.tr). The Acar & Ergonen Law Firm website can be accessed at www.acarergonen.av.tr.

This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide. Register for a free subscription.