With its decision published in the Official Gazette dated 1 December 2025 and numbered 33094, the Constitutional Court (“CC”) annulled Article 1 of Law No. 3095 on Statutory Interest and Default Interest (“Law No. 3095”) insofar as it applies to non-contractual debt relationships ².

The decision was rendered following a concrete norm review application filed by the Kahramanmaraş 3rd Administrative Court pursuant to Article 152 of the Constitution. In the underlying case, it was argued that the statutory interest rate applicable to compensation for damages arising from a building destroyed by an earthquake violated the Constitution.

Scope of application of the challenged provision

Article 1 of Law No. 3095 applies not only to contractual obligations, but also to non-contractual debt relationships, including:

• tort,
• unjust enrichment, and
• negotiorum gestio (agency without authority).

Taking into account the nature of the dispute before it, the Constitutional Court limited its review to non-contractual debt relationships.

Annulment decision and its reasoning

In its reasoning, the Constitutional Court based its assessment primarily on Article 35 of the Constitution (right to property) and Article 40 of the Constitution (right to an effective remedy). Referring to its established case law, the Court defined property as encompassing movable and immovable assets, limited real rights established thereon, intellectual property rights, as well as any enforceable monetary claims³.

The Court further held that interest claims constitute monetary claims accessory to the principal debt and therefore qualify as property.

The Court observed that returns generated from other types of interest and various financial instruments significantly exceed the value protection offered by statutory interest. This disparity, according to the Court, may incentivize debtors to delay payment, thereby undermining public order and eroding individual and societal trust.

Within the scope of the right to an effective remedy under Article 40 of the Constitution, the Court emphasized that the State must establish mechanisms capable of compensating for the depreciation in value of sums that are due but unpaid. It concluded that the provision under review failed to provide sufficient safeguards in this respect.

Accordingly, Article 1 of Law No. 3095 was annulled, by majority vote, as unconstitutional under Articles 35 and 40 of the Constitution, insofar as it applies to non-contractual debt relationships.

Date of entry into force of the annulment

Considering that the annulment would give rise to a legal vacuum detrimental to the public interest, the Constitutional Court ruled that the annulment decision would enter into force nine months after its publication in the Official Gazette.

Accordingly, the annulment will take effect on 1 September 2026.