Statutory interest

Under Turkish law, statutory interest is the rate prescribed by legislation that applies whenever the parties have not agreed on an interest rate. It serves as the default rate both for ordinary interest and for default interest on monetary claims.

It appears frequently in court judgments and enforcement proceedings as the rate applied to awarded sums. In commercial matters the creditor may instead claim the higher advance interest rate applicable between merchants, a distinction that can significantly affect the outcome of business disputes.

The rate itself is not fixed permanently; it is updated over time under the relevant legislation. What matters most in practice is therefore correctly identifying the type of interest and the date from which it starts to run.