Vice President Cevdet Yılmaz has stated Türkiye’s financial markets remain much stronger despite recent turbulence affecting only a limited segment of the capital markets.
Speaking at an event in the province of Elazığ on Sept. 26, Yılmaz referred to troubles in the investment funds market and said authorities were taking the necessary administrative and judicial measures to address the issue.
“Our financial markets are in a much better place, but we are facing a problem that has emerged in a specific and limited area of our capital markets,” Yılmaz said.
He added that the necessary administrative and legal steps were being taken and would continue to be implemented to overcome the problem.
“This is a temporary problem that has emerged in a limited area. Once we overcome it, our capital markets will continue on their path even stronger than before,” Yılmaz said.
“We are not facing a structural problem. The structure of our capital markets is quite healthy. However, we have a temporary problem, and all relevant institutions are fulfilling their responsibilities in coordination regarding this issue,” he said.
As part of the ongoing investigation, the Istanbul Chief Public Prosecutor’s Office sent a formal request to the Central Securities Depository (MKK) to determine the flow of funds and investor transactions related to funds managed by seven investment companies.
Meanwhile, Justice Minister Akın Gürlek said on Sept. 26 asset freezes were imposed following an examination of fund-related money outflows between July 1 and Aug. 16.
“Money outflows from the funds between July 1 and Aug. 16 were examined, starting with the highest amounts, and the assets of 46 legal entities, 18 funds and 42 individuals have been frozen,” Gürlek said.
The Capital Markets Board (SPK) announced last week that 131 investment funds set for liquidation currently hold approximately 826 billion Turkish Liras across 455,758 investors.
Dozens of people, including executives of some investment management companies, have already been arrested in the investigation.
