Erdoğan says gov’t has roadmap to address fund turmoil
ŞANLIURFA
President Recep Tayyip Erdoğan spoke at an event on Oct. 3. (AA Photo)
President Recep Tayyip Erdoğan assured investors on Oct. 3 that Türkiye’s economy can absorb the ongoing financial shocks, announcing a new roadmap to manage turbulence in the investment fund market.
“Let our citizens rest assured. The Turkish economy has the capacity to overcome this problem,” Erdoğan said at an event in the southeastern province of Şanlıurfa.
The crisis has shaken Türkiye’s financial markets and prompted authorities to investigate alleged irregularities involving investment funds. The Capital Markets Board (SPK) ordered the liquidation of 131 funds on Sept. 17, affecting more than 455,000 individual investors, according to figures reported by Turkish authorities.
“We are working to resolve the problem swiftly on the basis of justice and fairness, without allowing anyone’s rights to be violated,” Erdoğan said.
“Turkish capital markets will continue on their path much stronger. The ambitions of those seeking to sabotage Türkiye’s economic security to cover up their own wrongdoing will be thwarted.”
The SPK on Sept. 30 approved interim payments of up to 1 million Turkish Liras per eligible investor in funds established by Tera, Pusula, Atlas and Hedef portfolio management companies that are undergoing liquidation.
“We have convened our boards and determined our roadmap. Our first priority is to ensure that no harm comes to the Turkish economy. Anyone who has obtained unjust gains must answer to justice,” Erdoğan said.
“Let our nation trust and believe in us... Those who lay a hand on the nation’s assets will never get away with it. We will not allow this. We will never turn a blind eye to injustice, lawlessness or greed.”
The payments will be calculated based on each investor’s net investment amount. Investors with net investments below 1 million liras will receive the full amount, while payments for investors with net investments of 1 million liras or more will be capped at 1 million liras.
Türkiye’s Fund Coordination Board, chaired by Vice President Cevdet Yılmaz, held its second meeting on Oct. 2 to discuss the payment schedule for fund accounts and a draft amendment to the SPK.
The liquidation process will begin with money market funds, while other funds will be liquidated according to the number of investors involved.
Erdoğan also vowed those responsible for wrongdoing would be held accountable.
Nationalist Movement Party (MHP) leader Devlet Bahçeli, a key ally of Erdoğan, noted that the issue lies with how fund regulations are executed rather than the rules themselves.
“The lack of oversight and supervision lies at the heart of the issue,” Bahçeli said in a written statement.
He called for legal, administrative and structural measures to establish and maintain a financial system that investors can trust.