Turkish finance minister: money of 43,000 investors in liquidated funds reached banks

Turkish Treasury and Finance Minister Mehmet Şimşek said the money of 43,000 investors in 17 liquidated funds has reached their banks, stressing the crisis poses no systemic risk and that market manipulators will face justice.

Turkish Treasury and Finance Minister Mehmet Şimşek reassured investors that the money of 43,000 participants in 17 funds placed in ordinary liquidation — amid a probe into inflated fund valuations — had reached their banks as of Oct. 8.

"We gave priority to money market funds and small investors," Şimşek said at the National Vision in Economy and Finance Summit in Istanbul, adding that the inflated funds amount to 0.7% of national income but do not represent a total loss.

Which companies?

Istanbul Financial Center (2024)

The presidency’s Communications Directorate published the names and codes of the liquidated funds, set up by A1 Capital, Bulls and Pardus portfolio managers. Seven asset managers are involved in total; three are in ordinary liquidation and the others may take longer.

New legislation

"There is no need to worry about capital markets," Şimşek said, adding that the government is not downplaying the problem, that a new bill will go to parliament and that "everyone engaged in market-disrupting activity will be held accountable before the law."