This photo shows the Directorate of Communications headquarters. (AA Photo)
Türkiye has set up a board led by Vice President Cevdet Yılmaz to accelerate the liquidation of troubled investment funds and payments to investors, the Communications Directorate announced on Sept. 29.
The Fund Coordination Board was formed after President Recep Tayyip Erdoğan met with his economic team and senior regulators in Ankara.
The liquidation covers 131 funds run by seven portfolio management companies, with 455,758 investors, according to the Capital Markets Board (SPK).
At the meeting, the SPK presented a repayment roadmap for investors whose holdings had been verified.
Payments will depend on the funds’ assets and liquidity, the directorate said. The statement gave no payment dates.
Erdoğan stressed that protecting investors’ rights under capital market rules and ensuring fair payments “as quickly as possible” were the priorities, the directorate said.
At his instruction, the State Supervisory Board (DDK) has begun a review of recent investment fund transactions.
Its chairman, Salih Tanrıkulu, said the work covered both fund transactions and oversight activities.
The directorate also said further administrative and legal measures were planned to strengthen capital market supervision and prevent similar problems.
Officials briefed Erdoğan on the planned transfer of savings finance companies Katılımevim and Birevim, and İktisat Katılım Bank, to Türkiye Emlak Katılım Bank.
Communications Director Burhanettin Duran said separately that the problems were confined to a limited part of the fund market and did not pose a risk to the wider financial system.
“Those responsible will be held accountable before the law, regardless of their position,” he said.
The SPK ordered the funds into liquidation on Sept. 17 after defaults and delays in payments to investors seeking to redeem their holdings.
The affected funds are closed to new purchases and redemptions.
İşbank is handling the liquidation of the affected Tera Portföy funds, while Ziraat Bank is responsible for those managed by Pusula, Hedef, Atlas, A1 Capital, Pardus and Bulls Portföy.
Under the liquidation rules, cash from asset sales and maturing investments is to be distributed in proportion to investors’ holdings.
The banks determine the pace of asset sales according to market conditions and investors’ interests.
The SPK has extended the liquidation period from three to six months, but said the process could finish earlier depending on conditions.
Meanwhile, authorities seized five villas valued at about 1.2 billion Turkish Liras in the capital markets investigation led by the Istanbul Chief Public Prosecutor’s Office.
Investigators linked the properties, registered in other people’s names, to Pusula Portföy Chairman Muhammed Yarız and Pusula Holding Chairman Serdar Turhan.
Both men have been remanded in custody.
An arrest warrant was also issued for businessman Cengiz Avcı, who is abroad.
Investigators allege that Avcı earned about 15 billion liras from trading Odine Solutions shares over the past year and converted about 12 billion liras into cash, withdrawing it from the capital markets.
Avcı left Türkiye after the transactions. His bank accounts, properties and other identified assets were seized.
