Vice President Cevdet Yılmaz spoke at the parliament on Oct. 7, 2026. (AA Photo)
There is no systemic risk to Türkiye’s financial markets and public funds will not be used to cover losses stemming from the ongoing fund crisis, Vice President Cevdet Yılmaz has said.
Addressing parliament on Oct. 7 on the fund investigation, Yılmaz said 131 funds currently in liquidation account for 4.6 percent of all funds and 7.7 percent of total portfolio value.
“The problem emerged in a limited area,” he said.
Yılmaz said Türkiye’s capital markets remain fundamentally sound and that the liquidation of troubled funds would strengthen rather than weaken the market.
He said the government would protect investors’ rights, ensure the orderly functioning of markets and implement any necessary measures without delay.
“Another fundamental point I would like to emphasize is that Treasury resources will not be used for private losses incurred during this process,” he said.
He noted that investment funds, particularly high-risk hedge funds, are not covered by the state guarantees that apply to parts of the banking system.
He said the liquidation process would be carried out on a fund-by-fund basis, with investors’ claims primarily being met through each fund’s own assets.
“As a principle, investors’ rights will be met through the resources of the relevant fund. In the liquidation process, resources currently held by the funds themselves will be used first,” he said.
Yılmaz added that additional resources would come from the recovery of excessive or unfair gains and from proceeds generated through the sale of assets removed from the system.
“Resources recovered from those who obtained excessive or unjust gains, as well as proceeds from the sale of assets taken out of the system, will also be used,” he said.
