Decision on amendments to State-Supported Trade Credit Insurance

The Insurance and Private Pension Regulation and Supervision Agency has published a new communiqué by amending the Communiqué on the Tariff and Instructions and Working Procedures and Principles of the State-Supported Trade Credit Insurance System.

The amendment communiqué was published in the Official Gazette as follows:

ARTICLE 1- Article 2 of the Communiqué on the Tariff and Instructions and Working Procedures and Principles of the State-Supported Trade Credit Insurance System, published in the Official Gazette dated 7/1/2023 and numbered 32066, has been amended as follows.

“ARTICLE 2- (1) This Communiqué has been prepared based on Article 33/A of the Insurance Law No. 5684 dated 3/6/2007, the Decision on the State-Supported Trade Credit Insurance System put into effect by the Presidential Decree No. 7012 dated 30/3/2023, and Article 17 of the Regulation on the Working Procedures and Principles of the Special Risks Management Center published in the Official Gazette dated 27/10/2021 and numbered 31641.”

ARTICLE 2- Subparagraph (f) of the first paragraph of Article 3 of the same Communiqué has been amended as follows.

“f) SME: Enterprises that meet the definition determined in the Regulation on Small and Medium-Sized Enterprises put into effect by the Presidential Decree No. 7297 dated 24/5/2023,”

ARTICLE 3- In subparagraph (a) of the second paragraph of Article 4 of the same Communiqué, the phrase “in the Regulation on the Definition, Qualifications and Classification of Small and Medium-Sized Enterprises put into effect by the Council of Ministers Decree No. 2005/9617 dated 19/10/2005” has been changed to “in the Regulation on Small and Medium-Sized Enterprises”; the phrase “or another legal entity that owns the majority of its capital having been established at least two years ago” has been added after the phrase “being established two years ago” in sub-clause (1) of the same subparagraph; the word “annually” in sub-clause (4) of the same subparagraph has been repealed; the phrase “two hundred and fifty” in the same sub-clause has been changed to “five hundred”; the following paragraph has been added to the same article after the second paragraph and the subsequent paragraphs have been renumbered accordingly; the phrase “40%” in the existing fourth paragraph of the same article has been changed to “50%”, the word “fifth” in the existing sixth paragraph has been changed to “sixth”, and the existing seventh and eighth paragraphs of the same article have been repealed.

“(3) The legal entity that owns the majority of the capital within the scope of sub-clause (1) of subparagraph (a) of the second paragraph must meet the conditions in sub-clauses (2) and (3) of subparagraph (a).”

ARTICLE 4- The following sentence has been added to the beginning of the third paragraph of Article 7 of the same Communiqué.

“The Center may issue policies directly.”

ARTICLE 5- The word “Center” has been added after the phrase “collection of” in the fourth paragraph of Article 8 of the same Communiqué; the phrase “is 15 TL” in the fifth paragraph of the same article has been changed to “is 30 TL”, and the word “this” has been used instead of “the aforementioned”.

ARTICLE 6- The following paragraph has been added to Article 10 of the same Communiqué.

“(6) The compensation application regarding the trade credit insurance within the scope of the seventh paragraph of Article 12 can only be made if the enforcement proceedings are finalized. In this case, the compensation payment is carried out by the Center within the framework of the issues specified in the special conditions.”

ARTICLE 7- The following amendments have been made to Article 12 of the same Communiqué.

a) The table in the first paragraph of the same article has been amended as follows, and the word “fourth” in the footnote of the same table has been changed to “fifth”.

b) The “3,000” phrases in the second paragraph of the same article have been changed to “5,000”.

c) The table in the fourth paragraph of the same article has been amended as follows, and the word “fourth” in the footnote of the same table has been changed to “fifth”, and the phrase “1,000,000” has been changed to “2,000,000”.

ç) The first sentence of the sixth paragraph of the same article has been amended as follows.

“For buyers that the insured will start working with for the first time during the insurance period and who will be added to the policy, transactions are carried out within the scope of the first to fifth paragraphs of this article and Article 8.”

d) The following paragraph has been added to the same article.

“(7) In determining the premium within the scope of DDAS-Commercial, the maximum coverage amount requested by the SME may be taken as the basis instead of the premium rates determined based on turnover in the first paragraph. In this case, the premium is paid in advance and the provisions of the first to sixth paragraphs and the provisions of Article 8 are not applied. A second policy cannot be concluded within the scope of this paragraph before the termination date of the policy concluded within the scope of this paragraph. SMEs that have a DDAS-Commercial policy within the scope of the first paragraph cannot benefit from this product as long as their policies are in effect. The following table is taken as the basis for determining the premium and the maximum compensation amount:”

ARTICLE 8- The following sentence has been added after the first sentence of the first paragraph of Article 14 of the same Communiqué.

“The coverage within the framework of the seventh paragraph of Article 12 is applied as 100%.”

ARTICLE 9- Of this Communiqué;

a) Article 6, Article 7, the seventh paragraph added to Article 12 of the Communiqué, and Article 8 shall enter into force two months after the date of its publication,

b) Other provisions shall enter into force on the date of its publication.

ARTICLE 10- The provisions of this Communiqué shall be executed by the President of the Insurance and Private Pension Regulation and Supervision Agency.