Türkei: Neuer Rat soll Fondsabwicklung in der Türkei überwachen

Ankara and Istanbul - In response to a severe financial market crisis, the Turkish government has established a new oversight committee to monitor the administration of numerous investment funds, said President Recep Tayyip Erdogan in Ankara on Tuesday. This move aims to protect the rights of affected investors. Additionally, the government has tasked the state control authority with investigating irregularities.

The crisis stemmed from alleged market manipulation in low-volume shares on the Turkish stock exchange, resulting in significant losses for several funds. Concerned investors subsequently withdrew their funds, leading to liquidity issues as the funds could not secure sufficient resources promptly. The Turkish Capital Market Authority subsequently ordered the compulsory liquidation of over 100 such funds, affecting almost half a million investors with a total value of around $20 billion.

The regulatory body has now presented a plan for the gradual sale of fund assets and payments to investors. Turbulence had shaken the Turkish stock market in September, prompting the central bank to inject additional funds into the market. Several suspects were arrested for allegedly manipulating share prices. However, Finance Minister Mehmet Simsek stressed that there was no general risk to the Turkish financial system.

In reaction to the crisis, Istanbul's Bourse excluded over a quarter of companies from the key BIST-100 index, including several financial institutions whose stock prices had fluctuated dramatically. In the future, stricter rules will govern inclusion in the index to ensure market stability.