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The banking sector of Turkey, which has the 2nd largest banking system after Russia in the developing European region, is flexible enough to provide financing to investors in the country with its high capital and extremely liquid structure. Alongside the banks, the loan market of Turkey allows investors to provide project finance through leasing and factoring.
There are three types of banks in Turkey: deposit banks, development/investment banks, and participation banks that carry out their activities based on interest-free banking in line with Islamic finance principles accepted globally. Banks can give legal and real persons both local and foreign currency cash loans, non-cash loans or interest-free (participation) loans; however, it is not possible for banks to give foreign currency loans to real persons for non-commercial purposes. In addition, residents of Turkey are required to use a bank in Turkey as an intermediary institution while obtaining loan from abroad.
Leasing and factoring are other financing methods. Leasing; can be in the form of domestic leasing, foreign leasing, sale and leaseback or sales aid leasing. Real estate, automobile, computers, office equipment, medical devices, construction machines, manufacturing machines and other fixed assets can be obtained through financial leasing. Factoring companies, on the other hand, pay for the receivables documented with invoices arising from the goods and services sold and undertake the risk of payment.
In addition to the settled financial institutions in Turkey, various international development banks such as the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the International Finance Corporation (IFC) also provide financing to many investment projects in Turkey. Banking
Regulation and Supervision Agency: www.bddk.org.tr
The Banks Association of Turkey: www.tbb.org.tr
Conditions of Employment
Working conditions in Turkey is mainly governed by the Labor Code and Trade Union Law.
Under the Labor Law, there are various employment contract types:
Employment Contracts are exempt from stamp duty and any image and fee.
Discrimination against employees for their language, race, gender, political view, philosophical belief, religion or similar parameters are prohibited legally. Discrimination based on the gender while determining the salaries to be provided for the persons carrying out the same or equivalent duties are prohibited as well.
Working Times and Overtime
Pursuant to the Labor Law, the ordinary working time is up to 45 hours a week. In principle, this 45-hour period is evenly distributed equally over working days. However, in accordance with the Labor Law, the working period can be arranged within the legal limits by the employer.
Payments for hours exceeding the 45-hour weekly working time limit, as a rule, are made within the scope of "overtime". The wage to be paid for each hour of overtime is paid by increasing the amount of normal working wage per hour by fifty percent. Instead of paying for overtime workers, 1.5 hours of rest can also be given for each hour of overtime. For overtime work during week holidays and public holidays, the worker is paid a one-day holiday wage and overtime wage. Wages can be increased based on collective labor agreements or individual employment contracts signed between employees and employers. Total overtime cannot exceed 270 hours a year.
Paid Annual Leave
There are a total of nine paid holidays, including seven paid public holidays (1 January, 23 April, 1 May, 19 May, 15 July, 30 August and 29 October) and two paid religious holidays. Provided that they have worked for at least one year, including trial period, employees are entitled to paid annual leave in accordance with the following working hours:
Duration of employment (in year)
Minimum paid leave
1 - 5 years (including 5th year)
14 working days
5 - 15 years
20 working days
15 years (inclusive) or above
26 working days
These leave periods are the minimum periods specified in the law and may be extended based on collective labor agreements or individual employment contracts signed between employees and employers.
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For the information on investment legislation, please click here.