The Ministry of Trade can now issue regulations to modify the 12-month installment limit during emergencies. Changes were made to the provisions governing installment sales to consumers by retail businesses within the regulation that sets the principles and rules for retail trade.
This change, which allows the Ministry of Trade to adjust installment limits in extraordinary situations, is considered important in several respects. Especially after the major earthquake that struck Turkey, a number of new measures have been introduced; among them, the Ministry’s authority to regulate installment restrictions in trade during disaster periods and other emergencies has drawn attention.
REGULATION MADE ON 12-MONTH INSTALLMENT LIMIT
With the amendment to the regulation on principles and rules applicable to retail trade, the Ministry of Trade was granted new regulatory authority. Following its publication in the Official Gazette, the new provision empowers the Ministry to introduce temporary changes or restrictions on installment limits in retail trade at district, provincial, regional or national levels, particularly during disaster periods and other extraordinary circumstances.
The amendment was made to Article 12/B of the regulation. Under this change, authority over installment rules was given to the Ministry, modifying the provision that previously capped installment terms at 12 months.
INSTALLMENT TERMS TO BE ADJUSTED EXCEPT FOR HOUSING SALES
Under the authority granted to the Ministry of Trade, the 12-month limit on installment sales of goods and services—excluding housing sales—has been made adjustable. In disaster situations and other emergencies, the Ministry may temporarily alter the 12-month rule or impose additional limitations at district, provincial, regional, or national levels.
This change comes in the context of the severe disaster centered in Kahramanmaraş, which affected a total of 11 provinces. Alongside the Ministry of Trade, several other ministries and institutions issued measures to streamline processes for affected areas.
Measures that eased burdens for residents in disaster areas included postponing bank loan payments and deferring social security payment and reporting deadlines. With the new authority granted to the Ministry of Trade, the trade regulation that limited installment terms to 12 months can now be modified for disaster periods to better accommodate affected consumers and businesses.