Türkiye’s Ministry of Trade can now decide how many installments shoppers may use when buying goods and services other than housing, under a regulation published in the Official Gazette on Oct. 15.
The amendment to the regulation on principles and rules for retail trade authorizes the ministry to set installment periods for such sales and to take further decisions restricting them. It entered into force on publication.
The scope is broad. The rules apply whether or not the sale is backed by promissory notes or other negotiable instruments, and they also cover arrangements where a debt is split into installments or payment is deferred after the sale in return for a fee.
How the new system will work
Under the amended text, the ministry’s decisions will be announced on its official website and sent to the relevant umbrella trade and professional associations. Three paragraphs of the existing article governing installment sales were repealed.
The regulation itself does not set any specific installment cap, product category or deadline. Turkish media reports said the change is designed to let the government act faster and more flexibly, adjusting installment terms according to seasonal needs or economic policy goals rather than through a lengthy regulatory amendment each time.
No decision on new limits had been published as of the morning of Oct. 15.
Part of a wider cooling effort
Installment buying is deeply embedded in Turkish retail. Consumers routinely spread payments for electronics, furniture, clothing and holidays over several months, often interest-free, and many smaller retailers offer their own in-store payment plans backed by promissory notes.
For card purchases, the banking regulator BDDK already restricts how many installments can be offered in many categories. The new ministry powers extend the government’s reach to installment deals arranged directly between sellers and buyers, a segment outside the banking system.
The move comes as Turkish authorities try to keep domestic demand in check while bringing down inflation, which stood at 29.73% annually in September. New rules on credit card minimum payments, introduced jointly by the BDDK and the central bank, took effect this month.
For foreign residents and visitors, the practical impact will depend on what limits the ministry eventually sets. Stores may have to change the payment plans they advertise once any decision is announced, while purchases of homes are explicitly excluded from the new authority.
Sources
- Taksit sürelerinde yeni dönem. Bakanlık devreye girdi (NTV)
- Taksitli satışlarda yeni dönem! Bakanlık düğmeye bastı, tüm kurallar değişiyor (Bigpara/Hürriyet)
Photo: CherryX / CC BY-SA 3.0, via Wikimedia Commons
