In international commerce, cross-border transactions inherent to global trade come with administrative and financial risks. When an international supply contract, service agreement, or commercial loan breaks down, foreign creditors often find themselves attempting to collect outstanding receivables from local operating companies. A critical concern in such scenarios is asset dissipation: a debtor company, realizing that a foreign counterparty is preparing to file a formal lawsuit, may attempt to move liquidity out of its accounts, transfer operational capital to related entities, or strip its balance sheet.
This leads to a fundamental practical question: Can a foreign creditor legally freeze a Turkish company’s bank accounts to secure its monetary claims?
The short answer is yes. Turkish law grants foreign real and legal persons full access to provisional legal protection measures. Under the Execution and Bankruptcy Law No. 2004 (EBL), particularly Articles 257 through 268, a foreign creditor can petition the local courts for a provisional attachment order—known in local practice as İhtiyati Haciz—to place an immediate, binding block on a local corporate debtor’s bank accounts and liquid funds.
However, executing this strategy requires a clear understanding of substantive requirements, procedural timelines, cross-border security deposit rules, and operational mechanics. This comprehensive analysis explains how foreign entities can leverage this mechanism to safeguard their financial interests.
1. Understanding İhtiyati Haciz: The Legal Mechanism
A preliminary attachment (İhtiyati Haciz) is a temporary protective remedy governed by the Execution and Bankruptcy Law. It is important to distinguish this measure from a preliminary injunction (İhtiyati Tedbir), which is regulated under the Code of Civil Procedure No. 6100.
- Preliminary Injunction (İhtiyati Tedbir): Applies primarily to non-monetary property disputes where the specific subject matter of the dispute itself needs protection (such as determining the true ownership of real estate, machinery, or corporate shares).
- Preliminary Attachment (İhtiyati Haciz): Applies strictly to monetary claims. Its core purpose is not to decide the final merits of the underlying dispute or automatically transfer money to the creditor, but to lock down the debtor’s general assets—specifically liquid corporate bank accounts—so that funds remain available when a final judgment or arbitral award is eventually rendered.
By obtaining a preliminary attachment, the foreign creditor forces the Turkish bank to place an immediate restriction on the debtor company’s balances, preventing the transfer, withdrawal, or hidden movement of capital up to the total value of the debt claim plus accrued interest and estimated court fees.
2. Core Legal Requirements to Obtain a Freezing Order
Under Article 257 of the EBL, a court will not grant an order freezing a bank account simply because a claim is alleged. The foreign applicant must satisfy specific legal prerequisites.
STATUTORY PREREQUISITES (EBL ART. 257)
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┌────────────────────────────────────┼────────────────────────────────────┐
▼ ▼ ▼
MONETARY CLAIM DUE & PAYABLE UNSECURED
Claim must be a specific Debt must have reached Must not be covered
sum of money (or convertible its maturity date by a registered pledge
to TRY equivalents). (subject to exceptions). or mortgage.
A. Pecuniary Nature of the Debt
The claim must be a monetary debt. If the underlying contract was concluded in a foreign currency (such as USD, EUR, or GBP), the foreign creditor can still request a preliminary attachment order. However, under Turkish execution procedure, the foreign currency amount must be converted into Turkish Lira (TRY) using the central bank exchange rate on the application date to determine the precise statutory coverage limit for the bank freeze.
B. Absence of Real Security (Rehinle Temin Edilmemiş Olma)
Under EBL Article 257/1, preliminary attachment is reserved for unsecured monetary claims. If the foreign creditor already holds a registered pledge (rehin) or mortgage (ipotek) over the debtor’s physical assets that fully covers the debt amount, the court will generally reject the freezing application. The creditor must first attempt collection through foreclosure against the pledged property unless it can demonstrate that the collateral value is clearly insufficient to satisfy the debt.
C. Maturity of the Debt (Muacceliyet)
As a default rule, the debt must be due and payable. The foreign creditor must present documentation showing that the contractual payment date has passed and that the debtor is in default.
Statutory Exceptions for Unmatured Debts
Under EBL Article 257/2, a court can grant a preliminary attachment for a debt that has not yet matured if the foreign creditor proves the existence of specific risk indicators:
- The debtor company or individual has no fixed domicile or settled address in Türkiye.
- The debtor is actively preparing to flee the jurisdiction, conceal its commercial assets, or execute fraudulent asset transfers designed to defeat creditors’ rights.
3. Evidentiary Burden: The Standard of “Approximate Proof”
A major advantage of the preliminary attachment mechanism for foreign entities is the evidentiary standard required at the emergency application phase. Under Article 258 of the EBL, the creditor is not required to provide absolute, conclusive proof of the debt at this stage. Instead, the law mandates Approximate Proof (Yaklaşık İspat).
What Constitutes Approximate Proof?
The foreign applicant must submit strong prima facie documentary evidence showing that the claim highly likely exists and is legally valid. The court evaluates the documentation to confirm that the request is legitimate rather than speculative or vexatious.
Key supporting evidence includes:
- Executed international commercial contracts and purchase orders.
- Corresponding commercial invoices, bills of lading, and delivery receipts.
- SWIFT wire receipts, partial payment logs, or account reconciliations.
- Promissory notes, bills of exchange, or bank payment guarantees.
- Formal written notices of default sent via notary or official courier.
Ex Parte Proceedings (Dosya Üzerinden)
To ensure the effectiveness of the account freeze, preliminary attachment applications are routinely examined ex parte—meaning strictly on paper without notifying the debtor or scheduling an open hearing. If the debtor company were given advance notice, it could easily transfer liquid funds out of its Turkish bank accounts prior to the judicial decision.
4. Financial Security Requirements for Foreign Creditors
To balance the emergency power of freezing a operating company’s bank accounts with the risk of causing unjustified commercial harm, the law establishes strict financial guarantee rules. A foreign creditor applying for an attachment order generally faces two distinct collateral obligations:
FOREIGN CREDITOR COLLATERAL OBLIGATIONS
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┌──────────────────────────────────────┴──────────────────────────────────────┐
▼ ▼
DAMAGES SECURITY COLLATERAL FOREIGNER'S COST SECURITY
(EBL Article 259) (Law No. 5718 Article 48)
Deposited to cover potential damages if Deposited to cover potential court fees
the account freeze is proven unjust. and opposing party legal fees.
Typically **15% to 30%** of principal. Exemptions apply via international treaties.
1. Security for Damages (Haksız Haciz Teminatı – EBL Art. 259)
Under Article 259 of the EBL, a creditor seeking a preliminary attachment without a final court judgment must deposit collateral with the court cashier. This guarantee protects the debtor company against financial losses incurred if the attachment later turns out to be legally groundless.
- Amount: Judges enjoy discretionary authority to set the collateral percentage, typically ranging between 15% and 30% of the principal claim amount.
- Form: Security can be deposited in cash (TRY or convertible foreign currency) or provided as an unconditional, irrevocable Letter of Guarantee (Teminat Mektubu) issued by a commercial bank operating in Türkiye.
- Exemptions: If the foreign creditor’s claim is backed by an official court judgment (ilam), an arbitral award that has been approved for enforcement, or an official public deed, the court may reduce or completely waive this security requirement.
2. Foreigner’s Security for Litigation Costs (Cautio Judicatum Solvi)
Under Article 48 of the International Private and Civil Procedure Law No. 5718 (Law No. 5718), any foreign individual or corporate body that files a lawsuit, initiates enforcement proceedings, or requests an attachment order before a Turkish court must post security to cover potential trial costs and opposing side legal expenses.
Important Treaty Exemptions
Foreign entities are exempt from this foreign cost security requirement if their home country is a signatory to relevant international agreements:
- The 1954 Hague Convention on Civil Procedure or The 1980 Hague Convention on International Access to Justice.
- Bilateral Judicial Assistance Treaties: Türkiye has bilateral treaties with numerous countries containing mutual exemptions from lawsuit collateral (cautio judicatum solvi).
- De Facto Reciprocity: If the foreign creditor demonstrates that Turkish citizens and companies can bring legal actions in the applicant’s home jurisdiction without posting foreigner security, the court will waive the requirement based on reciprocity.
5. Execution Mechanics: How Bank Accounts Are Frozen
Obtaining a favorable court order is only the first phase of the process. An attachment decree does not automatically communicate with banking networks on its own; it must be formally processed through the state enforcement mechanism.
PROCEDURAL WORKFLOW FOR FREEZING BANK ACCOUNTS
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┌───────────────────────────────────────┴───────────────────────────────────────┐
▼ ▼
1. COURT APPLICATION 2. EXECUTION DEMAND 3. BANK NOTIFICATION
File ex parte petition with Submit court decree to Execution Office sends EBL Art. 89
Commercial Court & post Execution Office within notices to banks via national
required collateral. **10 DAYS**. electronic networks (İİK 89/1).
│
▼
4. ASSET LOCK 4. MANDATORY MAIN PROCEEDING
Bank immediately locks funds Creditor must file lawsuit/debt
up to the specified claim value proceeding within **7 DAYS**
in local & foreign currencies. to maintain the freeze.
The 10-Day Execution Window (EBL Art. 261)
Once the Commercial Court issues the preliminary attachment decree, the foreign creditor must submit an execution demand to the competent local Execution Office (İcra Dairesi) within 10 days from the date of the decision.
Critical Rule: If the foreign creditor fails to submit the order to the Execution Office within this strict 10-day statutory window, the freezing decree automatically becomes void by operation of law.
Banking Communication Channels: Electronic Notices Under EBL Art. 89
The Execution Office serves formal third-party attachment notices—commonly referred to as Article 89 Notices (İİK 89/1 Haciz İhbarnamesi)—on commercial banking institutions across Türkiye.
In modern Turkish practice, these notices are transmitted electronically through the National Judicial Network System (UYAP) directly to the headquarters and legal processing divisions of licensed retail and commercial banks.
Upon electronic receipt of the Article 89 notice:
- Immediate Lock: The bank’s central automated compliance software places an immediate administrative freeze on all existing liquid balances across Turkish Lira (TRY), US Dollar (USD), Euro (EUR), and other foreign currency accounts registered under the debtor company’s tax identification number.
- Scope of the Block: The freeze applies up to the maximum monetary sum stipulated in the court order (principal debt + execution costs + accrued interest). Any operational funds exceeding this capped limit remain accessible to the debtor company.
- Incoming Deposits: Depending on the explicit phrasing of the execution demand, the freeze also attaches to future incoming credits and commercial bank transfers arriving in those accounts until the total attached threshold is met.
- Mandatory Bank Response: The served banking institutions are legally required under EBL Article 89 to file an official response within 7 days, confirming whether active accounts exist and specifying the precise amount of capital successfully blocked.
6. Post-Freeze Strict Statutory Deadlines: Maintaining the Attachment
A preliminary attachment is an interim protective measure, not a final distribution of funds. It exists purely to hold assets in place while the underlying legal dispute is resolved on its merits. Therefore, the law imposes rigid post-execution timelines on the foreign creditor.
The 7-Day Main Proceeding Requirement (EBL Art. 264)
Under Article 264 of the EBL, if the preliminary attachment was executed before filing a main lawsuit or debt collection proceeding, the foreign creditor must initiate substantive legal proceedings within 7 days.
This 7-day period starts from the date the preliminary attachment order is executed on the bank accounts or served on the debtor. To keep the bank account freeze active, the foreign applicant must take one of the following formal procedural steps within this 7-day window:
- Initiate formal Debt Execution Proceedings without Judgment (İlamsız İcra Takibi) by issuing an official Order to Pay (Ödeme Emri) through the Execution Office.
- File a full substantive Debt Recovery Lawsuit (Alacak Davası) before the competent commercial court.
- If the underlying agreement contains a valid arbitration clause, initiate formal Arbitration Proceedings before the designated international or domestic arbitral tribunal.
Consequence of Default: If the foreign creditor misses this 7-day deadline, the preliminary attachment automatically lapses. The bank accounts are immediately unblocked, and the debtor company regains full operational access to its liquid funds. Furthermore, the debtor company can initiate legal actions against the security collateral posted by the creditor to recover any business losses caused by the temporary freeze.
7. Legal Options Available to the Debtor Company
Turkish execution law provides the local company with specific procedural mechanisms to contest the account freeze or replace it with alternative security.
A. Filing a Formal Objection (İhtiyati Hacze İtiraz – EBL Art. 265)
The debtor company can contest the freezing order by filing a formal objection with the issuing court within 7 days of receiving notice of the attachment. However, statutory grounds for objection are strictly limited to:
- Failure to meet statutory conditions under EBL Article 257 (e.g., alleging the claim is not yet due or is already secured by a pledge).
- Lack of territorial or subject-matter jurisdiction of the court.
- Inadequacy or invalidity of the security collateral posted by the foreign creditor.
Filing an objection does not automatically suspend or lift the bank account freeze unless the judge explicitly issues a stay order.
B. Substitution of Counter-Security (EBL Art. 266)
If a debtor company’s operational cash flow is disrupted by a bank freeze, it can petition the court or Execution Office to lift the freeze under Article 266 of the EBL by offering alternative counter-security.
If the debtor company provides an unconditional bank letter of guarantee or deposits cash equal to the total claim value plus potential interest and execution costs, the court will order the bank accounts unblocked. The counter-security then stands in place of the bank accounts as the guaranteed source for ultimate collection.
8. International Arbitration Clauses and Local Freezing Orders
A common issue in cross-border commercial relationships is the interaction between international arbitration clauses and local provisional remedies. Many international contracts stipulate that disputes must be resolved through foreign or domestic arbitration (such as ICC, LCIA, or ISTAC) rather than local state courts.
Does an arbitration agreement prevent a foreign creditor from freezing bank accounts through Turkish courts?
No. Under Article 6 of the International Arbitration Law No. 4686 (Law No. 4686), a party to an arbitration agreement retains the absolute right to request provisional protective measures—including preliminary attachments—from state civil courts before or during arbitral proceedings.
- Applying to a Turkish commercial court for a preliminary bank attachment does not violate or waive the underlying arbitration agreement.
- Once the freezing order is secured, initiating formal arbitration proceedings within the mandatory statutory 7-day window under EBL Article 264 maintains the bank freeze throughout the arbitral process.
Comprehensive Summary Table for International Creditors
| Operational Step | Key Requirements & Legal Basis | Time Sensitivity / Statutory Deadlines |
| 1. Evidence Audit | Compile written contracts, invoices, SWIFT records, and default notices to establish “Approximate Proof”. | Pre-filing stage. |
| 2. Treaty & Security Check | Assess Hague Convention status to confirm foreign security waivers (Law No. 5718 Art. 48). | Pre-filing stage. |
| 3. Court Application | File ex parte application before Commercial Court (Asliye Ticaret Mahkemesi). | Emergency ex parte review. |
| 4. Post Security Collateral | Deposit required damages security (typically 15%–30% in cash or bank guarantee) (EBL Art. 259). | Immediately upon court order. |
| 5. Order Execution Demand | Submit decree to Execution Office to issue EBL Art. 89 electronic notices to commercial banks. | Within 10 Days of decision (EBL Art. 261). |
| 6. Main Proceedings | File substantive lawsuit, initiate debt enforcement, or start arbitration (EBL Art. 264). | Within 7 Days of execution/notice (EBL Art. 264). |
Final Takeaways
A foreign creditor can legally freeze a Turkish company’s bank accounts to secure monetary claims. The preliminary attachment framework (İhtiyati Haciz) established under the Execution and Bankruptcy Law offers a highly effective, ex parte remedy to prevent debtor asset dissipation.
To succeed in enforcing this remedy, foreign entities must:
- Establish a prima facie monetary debt using strong documentary evidence under the standard of approximate proof.
- Account for court collateral obligations (damages security and potential foreigner security).
- Strictly adhere to post-order timelines—specifically the 10-day execution demand window and the 7-day main proceeding deadline—to prevent the asset freeze from automatically lapsing.
When executed in full compliance with these statutory steps, freezing local bank accounts creates powerful leverage, ensuring that liquid assets remain preserved to satisfy the final resolution of cross-border commercial disputes.