INFO CENTER
24.11.2024

Surety Bonds Started to be Accepted as Collateral

Law No. 7417 was published in the Official Gazette No. 31887 on July 5, 2022.

With this Law, an amendment was made to the first paragraph, subparagraph (2) of Article 10, titled “Guarantee and Valuation,” of the Law No. 6183 on the Collection Procedure of Public Receivables, making it possible for surety bonds issued by insurance companies under guarantee insurance to also be accepted as collateral.

Guarantee insurance is one of the products that provide security against the risk of a debtor failing to fulfill an obligation arising from a contract or law. It is expected that the surety bonds issued within this scope will become an important instrument in VAT refunds, withholding tax refunds, and debt installments.

You can access the relevant Law here.

Best regards,

BİLGENER

Info Center