Life Sciences Newsletter, April 2018
Law on the Payment by the Ministry of Finance of Medical Device Companies’ accumulated receivables
Dicle Doğan and Fatma Sevde Tan, Gun + Partners
Historically, medical device companies could not receive payments for any products sold to state university hospitals in Turkey. On 6 April 2018, an Omnibus Bill was published in the Official Gazette numbered 30383 (Turkish language), introducing a new payment model for accumulated unpaid debts arising from the purchase of drugs and medical devices by state university hospitals. However, medical companies wishing to receive such payments must agree to apply discounts.
The scope of the payment model covers the debts that are still unpaid according to each university’s accounting records as of 31 December 2017 and are still not paid as of the publication date of this provision. Accordingly, the creditors may request such payment from universities until 6 May 2018. However, the entire debt shall be recalculated without including interest and by applying discounts which are yet to be determined by the Council of Ministers. Within 15 days following this deadline, all applying companies must notify the Ministry of Finance of the amount of debt requested to be paid. The Ministry of Finance will thereupon calculate the debt amounts according to the discount rates and transfer to the debtor university the relevant amount within one month. The university is expected to pay the companies within five working days of this transfer.
First published by Practical Law, in 01.05.2018