Turkey Targets "Ponzi-Style" Funds as Officials Move to Contain Stock Market Crisis
- On September 17, Turkey's capital markets board SPK ordered the liquidation of 131 investment funds worth $18bn, appointing government-run Ziraat Bank and private lender Isbank to manage the orderly wind-down.
- Justice Minister Akin Gurlek confirmed authorities launched a coordinated crackdown, arresting four fund executives and placing 51 individuals under travel bans with frozen assets while blocking 246 social media accounts accused of spreading panic.
- Tera Group stocks remained locked at the daily price floor on September 18 after the company pulled out of a deal to acquire Pusula Holding, leaving those distressed assets without a buyer.
- Tasked with a three-month deadline, Ziraat Bank and Isbank must convert underlying assets into cash for investors, though market participants question whether approximately 60% of portfolios locked in illiquid positions can be salvaged.
- Finance Minister Mehmet Simsek stated on NTV that the crisis impacts only 131 of 2,038 investment funds, asserting "There is no widespread systemic risk" because the broader financial system remains entirely healthy.
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58 Articles
Turkish authorities are trying to calm financial markets after problems at several investment funds triggered a sharp sell-off in stocks. The regulator has suspended trading in funds managed by seven companies and ordered the liquidation of dozens of funds.
Turkey mobilized two of the country's largest banks to liquidate 131 investment funds involved in the collapse of a speculative bubble that shook its capital markets and put at risk billions of dollars in investments of tens of thousands of investors. Exclusive material for subscribers. To have full access, access the link of the subject and register.
Mutual funds earmarked for liquidation in Turkey have a total portfolio size of $21.4 billion The post Turkey sees turmoil after mutual fund sell-off appeared first on in.gr.
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