The Turkish leasing law that was proposed a year ago will create
difficulties for large leasing deals to be structured, according to
a leading Turkish law firm.
Yesim Bezen, a partner at the Turkish law firm Bezen &
Partners, said: “While the proposed law will be fine for small
assets, it won’t necessarily be good for larger assets, which
require a more complex framework. Although it seems clear on paper,
clients do not know how to put it into practice.”
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Enacted in 1985, the current Turkish leasing law was seen as no
longer suitable for today’s more complex deal structures. A new
law, based on US leasing law, was drafted, but Bezen does not
believe that it will resolve all of the former legislation’s
problems.
“It is not an easy legislation to understand, but people will
find ways around it, for example to structure operating leases,”
Bezen said.
With the Turkish economy feeling the effects of the global
recession, the Turkish leasing market place has also suffered.
“Although there is still demand for finance in the small-ticket
segment, we have seen a clear slowdown in the mid- to large-ticket
markets. But, we expect that the market will pick up again by the
end of this year,” Bezen added.
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