Collection Made by the SDIF

Collection Made by the SDIF

In 1993, Dışbank A.Ş. shares which were owned by our Bank were sold to Lapis Holding A.Ş. In 2008, it was claimed that USD 52.6 million of the amount, which was paid upfront within the context of the sale agreement, had been provided from the funds of the insolvent TYT Bank A.Ş. by the buyer and payment of USD 52.6 million as well as the interest to be calculated to the Savings Deposit Insurance Fund (SDIF) was demanded.

The administrative actions initiated by the SDIF in 2008 were revoked by Council of State Administrative Law Chambers 13th upon the application of our Bank. The decisions which were in favour of our Bank were reversed by Plenary Session of the Law Chamber upon the appeal of the SDIF. Council of State Administrative Law Chambers 13th decided to reject the applications of our Bank in January 2016 due to their obligation to obey the decisions of reversal.

After the aforementioned court decisions, although the legal process was still in progress, the collection procedures were carried out within the context of Law Nr. 6183 and 298.5 million TL, including the default interest, was collected from our Bank by the SDIF on 25 March 2016.

As a part of the legal process, individual application to the Constitutional Court of Republic of Turkey has been made by our Bank and conclusion of the application is anticipated. The legal process is continued within the framework of the ongoing lawsuits and other available legal options.

For the amount which was collected by the SDIF, provisions amounting to 138.5 million TL will be set aside in addition to the previous years' provisioning of 160 million TL within the framework of accounting principles.