Turkey's Erdoğan affirms capital market stability amid fund liquidations

Turkish President Recep Tayyip Erdoğan has affirmed the strength and stability of Turkey’s capital markets following recent volatility in the investment fund sector. Speaking after a government meeting in Ankara, Erdoğan characterized the current issues as limited in scope and stated they do not threaten the overall stability of the national financial system.

The situation stems from a September 17 decision by the Capital Markets Board of Turkey to liquidate 131 funds managed by seven different portfolio management companies. This action was taken after authorities detected unusual movements in the stock prices associated with those funds. Erdoğan noted that investigations are ongoing to hold accountable anyone proven to have engaged in illegal profits or practices that destabilize the market.

To prevent future occurrences, the government is working on new administrative and legal regulations to improve market performance. Minister of Treasury and Finance Mehmet Şimşek added that the government is taking necessary measures to protect investor rights and maintain market stability, emphasizing that legal actions are being coordinated with the Ministry of Justice to ensure legitimate investors are not unfairly targeted.