ANKARA, June 13, 2026 — The Turkish government has significantly increased the threshold for collateral-free installment plans on public debts, easing repayment conditions for taxpayers and businesses facing financial strain.
According to a Presidential Decree published in the Official Gazette, the amount of public debt that can be restructured without providing collateral has been raised from 250,000 Turkish lira to 10 million lira. The change applies to debts owed to public institutions, including tax liabilities and certain social security obligations.
The measure is part of broader efforts to improve cash flow conditions for individuals and companies while supporting economic activity. Under the new framework, debtors whose obligations do not exceed 10 million lira will be able to apply for installment arrangements without submitting additional guarantees or collateral.
For debts exceeding the new threshold, collateral will be required only for the portion above 10 million lira. Authorities stated that debtors will need to provide security equal to 50% of the amount exceeding the limit, rather than collateral for the entire debt balance.
The increase follows a series of recent reforms aimed at making public-debt restructuring more accessible. Earlier legislative changes had already extended the maximum repayment period for eligible public debts from 36 months to 72 months, allowing taxpayers to spread payments over a longer period and reduce monthly financial burdens.
Economists and tax experts say the higher collateral-free threshold could particularly benefit small and medium-sized enterprises (SMEs), which often face difficulties obtaining bank guarantees or pledging assets as security when seeking debt restructuring arrangements.
Why it matters: The tenfold increase in the collateral-free limit is expected to make debt restructuring accessible to a much larger share of taxpayers and businesses, improving liquidity conditions and reducing administrative barriers to repayment agreements with public authorities.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök