Originally from Handbook on Third-Party Funding in International Arbitration

1.1.   TPF Regime in Turkey

1.1.1. Is TPF commonly used in your Jurisdiction? If yes, since when (is it a new trend or a well-established practice)? 

Under the Turkish Code of Civil Procedure (“CCP”)  it is provided that those who do not have adequate finances to pay for the costs of the court proceedings may benefit from legal aid provided by the state treasury. According to article 334 of the CCP, in order to qualify for legal aid, the claim of such individuals should not clearly lack merit. 

However, Turkish law does not provide any specific regulations regarding TPF. Moreover, there is no obligation to disclose the existence of a TPF agreement; therefore, publicly available information on the use of TPF is limited.

To our knowledge, TPF is not commonly used in litigations or arbitrations in Turkey. Nevertheless, there have been few publicly known instances of Third-Party Funding used by Turkish investors in ICSID arbitration cases. 

1.1.2. Please shortly describe the TPF market in your Jurisdiction. Is it dominated by local or international Funders, which type of Funders are active, which cases get typically funded? Is there any source on Funders (like the overview published by the German Bar)?

There is no publicly available data or statistics for the TPF market in Turkey, nor are there any sources or specific regulations on Funders. Therefore, it is not possible to make a determination as to the role of local or international Funders.

There is no information regarding which cases get typically funded. However, it seems more likely for TPF to be used by Turkish investors, in international arbitration.