Parliament is set to debate a bill this week allowing interim payments of up to 1 million Turkish Liras to eligible investors in funds ordered into liquidation.
The proposal, approved by the Plan and Budget Commission on Oct. 14, covers funds the Capital Markets Board (SPK) ordered liquidated on Sept. 17 whose liquidation remains incomplete when the legislation is published.
Investors with net investments below 1 million liras could receive up to that amount, while those at or above the threshold could receive a maximum of 1 million liras.
Interim payments would be calculated without inflation adjustments, depend on available fund assets and be deducted from final entitlements.
Liquidation would proceed under SPK supervision.
People and institutions identified by the board as having participated in insider trading, market manipulation or other market-disrupting acts involving the funds would be excluded from payments.
The board would determine each fund’s losses, identify those responsible and notify the Savings Deposit Insurance Fund (TMSF) of the amounts to be recovered. Primary liability would rest with the portfolio management company that founded or managed the fund.
Assets could also be seized under the Criminal Procedure Code during investigations linked to the funds.
After necessary expenses are deducted, the TMSF would transfer recovered money to the institution handling liquidation.
If liquidation has been completed, the money would go to the Investor Compensation Center (YTM), which would distribute payments in proportion to investors’ fund holdings.
The General Assembly will first resume debate on the Turkish Red Crescent bill when it reconvenes on Oct. 20. Its first three articles have already been approved.
That proposal would make the organization the sole body authorized to receive and use aid sent to Türkiye by the International Federation of Red Cross and Red Crescent Societies, the International Committee of the Red Cross and national societies.
Budget discussions also begin this week. Vice President Cevdet Yılmaz is due to present the 2027 central government budget bill and the 2025 final accounts bill to the Plan and Budget Commission on Oct. 21.
Some 41 billion Turkish lira liquidation completed in troubled funds
A liquidation process worth approximately 40.8 billion Turkish lira ($828 million), covering 66 investment funds, has been completed, with more than 45,000 investors receiving cash and in-kind payments, according to a statement released by the Communications Directorate following the sixth meeting of the Fund Coordination Board chaired by Yılmaz on Oct. 18.
Ziraat Bank finalized the liquidation of 66 investment funds managed by A1 Portfolio Management, Bulls Portfolio Management and Pardus Portfolio Management, reducing the number of funds under liquidation from 131 to 65.
Under a decision issued by the Capital Markets Board (SPK) on Oct. 15, liquidation proceedings for funds established by Hedef Portfolio Management were brought under the same framework previously adopted for funds founded by those 3 portfolio management companies, said the statement.
Within this framework, authorities plan to make payments to the largest possible number of investors this week, with priority given to those holding money market funds, it added.
