AK Party prepares regulation to compensate fund crisis investors

The AK Party is preparing a 10-item legal regulation to address the fund crisis and facilitate payments to affected investors. The proposal is expected to be submitted to the Grand National Assembly of Turkey (TBMM) shortly.

Approximately 455,000 investors have been affected by the crisis. The plan prioritizes roughly 350,000 small investors with claims under 1 million lira, with payments scheduled to begin this month. These payments will be made in stages rather than a single lump sum. Investors with claims exceeding 1 million lira will be compensated in later phases as fund assets, including securities and real estate, are liquidated into cash.

Under the proposed regulation, investors will receive their original principal plus an inflation adjustment. Officials stated that no public funds will be used for these repayments; instead, the process will be funded by the liquidation of the funds' own assets. Payments are expected to be processed through İş Bankası and Ziraat Bankası.

Vice President Cevdet Yılmaz will inform the TBMM regarding the fund investigation. A Fund Coordination Board has been established under his leadership to oversee the liquidation process, while the State Supervisory Council has been tasked with examining the fund transactions.