Foreign currency debts

The money is creating the subject of many debt relations due to its own character. People can execute the earnings which is sourced from their debt relations as money. With its abstract financial power, the money has a significant role as exchange and earn the goods in the social life. In the subject of execution by money of an earning after of a debt relation, there might be conflicts between the debtor and payee due to the nominal value of the money. In this scenario, sides may decide to go to way of debiting on the currencies of countries which are providing more stability. Foreign money debts appear in case of agreements of sides to incur liabilities on a different money currency than the legal money currency. In Turkish Laws, it is possible for the sides to incur liabilities based on TBK.m.99. In this situation, the execution may be earned on foreign currencies. Foreign money debts may be sourced from many debt relations. Due economic and political reasons such as inflation, economic crisis and devaluation, Turkish Lira has facing extreme value loses. Because of that, payees may force the debtors to make the contracts and agreements on the currencies of countries which are providing more stability. As an effect of recent economic and political events, Turkish Lira has faced extreme value losses. Debtors has become unable to pay their debts in foreign currencies due to extreme value loss of Turkish Lira. Consequently, to protect the value and the worth of Turkish Lira, based on the Law About of Protection of Turkish Lira, by the Presidency, Nr. 85 Judgement has been put in the effect to making changes on Nr. 32 judgement dated 12 September 2018. According to this law, to protect the value and the reputation of Turkish Lira, it has been forbidden to make specific contracts with foreign money currencies. In this study, in line with these current developments, foreign currency debt was examined in terms of practice and theory by making use of academic publications and court decisions, and the problems related to foreign currency debts were tried to be examined. Key Words: Foreign, Money, Debt, Judgement, Contracts