What is the Statutory Interest Rate? The Statutory Interest System Has Changed with the 12th Judicial Package (2026 Current Guide)

What is the current statutory interest rate? entering into force in 2026 12th Judicial Package along with the fixed statutory interest system that has been applied for years has changed significantly. The legal interest rate will no longer remain fixed at a specific percentage; a dynamic system tied to the Central Bank of the Republic of Turkey (TCMB) rediscount rate will be implemented.

This amendment, in particular;

• Enforcement proceedings,
• Debt collection lawsuits,
• Compensation lawsuits,
• Commercial disputes,
• Receivables arising from contracts

directly concern millions of individuals and thousands of companies.

In this article, following the 12th Judicial Package, how the statutory interest rate will be determined, the differences between the old and new systems, the lawsuits to which it will apply, and its effects on practice are explained in detail.

What is Statutory Interest?

Statutory interest is the interest mandated by law in cases where the parties have not agreed upon any interest rate in the contract.

In other words;

“Interest shall be paid, but if the parties have not determined a rate, this is the interest that will apply.”

Numbered 3095 Law on Statutory Interest and Default Interest contains the primary regulation on this matter.

Statutory interest;

• in monetary claims,
• in court judgments,
• in enforcement proceedings,
• in unjust enrichment lawsuits,
• in compensation lawsuits,
• in negotiorum gestio (unauthorized agency),
• is applied in numerous private law disputes.

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What Was the Statutory Interest Rate Before the 12th Judicial Package?

For many years, the statutory interest rate was applied as a fixed rate in Turkey.

With the most recent regulation;

As of June 1, 2024, the statutory interest rate was applied as 24% annually.

This rate had been determined by a Presidential Decree.

However, during periods of high inflation;

• the severe loss of value in receivables,
• lawsuits taking years to conclude,
• and the growth of the creditor's damages

have led to intense criticism of the current system.

Anayasa Mahkemesi has ruled that the application of fixed interest rates may, in certain respects, violate the right to property. Following this, a new regulation was drafted and enacted within the 12th Judicial Package.

How Did the Statutory Interest Change with the 12th Judicial Package?

The most important amendment is as follows:

A fixed interest rate will no longer be specified in the law.

Instead;

Statutory interest = 80% of the rediscount rate applied by the CBRT for short-term credit transactions

shall be taken as the basis.

Consequently, the interest rate will be able to adjust automatically according to economic conditions.

How Will Statutory Interest Be Calculated Under the New System?

The new system is quite straightforward.

Each year;

the rediscount rate applied by the TCMB on December 31 shall be taken.

Of this rate;

80%

shall be the statutory interest rate to be applied in the first six months of the following year.

Can the Interest Rate Change Again Within the Year?

Yes.

12. The Judicial Package has paved the way for this as well.

If;

the rediscount rate announced on June 30

differs from the rediscount rate on December 31 by 5 points or more,

the new rate shall be applied in the second half of the year.

Thus;

• high inflation,
• interest rate changes,
• economic fluctuations

will be reflected more quickly in the statutory interest system.

The Greatest Advantage of the New System

Under the former system;

even if the court proceedings lasted 4 years,

the interest rate often fell well short of economic realities.

As a result;

• creditors suffered severe losses,
• while debtors were able to benefit from the delay.

Under the new system, however;

since the interest rate is tied to economic indicators, it is aimed to preserve the purchasing power of the receivable.

Sample Calculation

The statutory interest calculation will be as follows. Let us assume that the TCMB rediscount rate was 40% on December 31. In this case, the statutory interest;

40% × 80% = 3%2

will be applied as such.

If the rediscount rate changes significantly on June 30, the rate will be recalculated for the second six-month period. This practice helps protect the rights of creditors due to prolonged judicial proceedings.

Which Lawsuits Will the New Regulation Affect?

The amendment affects not only enforcement proceedings;

it also impacts many branches of law.

For example;

1. Actions for Debt

This is the type of lawsuit that will be most affected.

The interest adjudicated at the end of the court proceedings will now be calculated in accordance with the new system.

2. Enforcement Proceedings

Enforcement without a judgment,

enforcement of judgments,

proceedings based on bills of exchange where statutory interest is demanded,

lawsuits for the cancellation of objections,

interest calculation to be applied during the processes for the removal of objections will gain significance.

3. Compensation Lawsuits

Pecuniary compensation,

tort,

breach of contract,

defective service,

defective work,

defective vehicle,

interest rates in lawsuits regarding defective housing may vary significantly.

4. Labor Lawsuits

The new regulation may have an impact depending on the type of interest to be applied to employment receivables.

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5. Commercial Lawsuits

The new system will apply to commercial disputes where no interest rate is specified in the contract.

Has Default Interest Also Changed?

No.

12. The Judicial Package primarily statutory interest regulation has been amended.

Special provisions regarding default interest and regulations concerning commercial default interest will continue to be evaluated separately. Which type of interest shall apply in the specific dispute is determined based on the nature of the receivable and the relevant special legislation.

When Will the New Regulation Take Effect?

12. The Judicial Package has been adopted by the TBMM General Assembly and enacted into law. The new system regarding the calculation of statutory interest shall serve as the basis for practices following the effective date. The characteristics of the specific case must be evaluated separately in terms of transitional provisions and which disputes they will apply to.

Frequently Asked Questions

What is the statutory interest rate now?

There is no longer a single, fixed rate. Statutory interest shall be calculated based on 80% of the CBRT’s rediscount rate.

Does the former 24% practice continue?

No. With the 12th Judicial Package, the fixed rate system has been abolished, and a dynamic calculation system has been adopted.

Will the interest rate change every year?

Yes. Depending on changes in the rediscount rate, it may be updated annually and, where necessary, in the second half of the year.

Which interest rate will apply in lawsuits?

Depending on the nature of the dispute, statutory interest, default interest, or commercial default interest may apply. Each file must be evaluated within the framework of its own legal characteristics.

Will the new interest rate apply in enforcement proceedings?

It shall apply in accordance with the enforcement provisions of the law and the nature of the receivable subject to the proceeding. The calculation method is particularly important for newly initiated proceedings.

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Conclusion

12. The amendment introduced by the Judicial Package is one of the most significant interest rate regulations of recent years. With the transition from the fixed 24% application to a dynamic system indexed to the CBRT rediscount rate, the statutory interest rate will adapt more quickly to economic conditions. This change will have significant implications, particularly in terms of preserving the value of receivables in prolonged lawsuits and execution proceedings. However, the specific type of interest to be applied and the effect of transitional provisions on the concrete case must be evaluated separately for each file.

Atty. Batın YILMAZ – Attorney at Law, Istanbul Bar Association