Turkey Targets "Ponzi-Style" Funds as Officials Move to Contain Stock Market Crisis
- On Thursday, Turkey's Capital Markets Board ordered the liquidation of 131 investment funds, appointing Ziraat Bank and Isbank to oversee an orderly wind-down of assets across seven management firms including A1 Capital, Atlas, Bulls, Hedef, Pardus, Pusula Holding, and Tera Portfoy.
- Alleged market manipulation and liquidity problems triggered the crisis in late August, prompting the SPK to file criminal complaints over transactions exhibiting unexplained price movements inconsistent with financial realities.
- Finance Minister Mehmet Simsek stated on Friday the crisis is contained, representing about 10% to 11% of total fund assets, with approximately $18bn involved in the wind-down.
- Justice Minister Akin Gurlek announced a sweeping crackdown: four fund executives and 16 social media manipulators arrested, 51 individuals placed under travel bans, and 246 social media accounts blocked for spreading panic.
- Banks face a three-month deadline to convert assets into cash, but with approximately 60% of portfolios locked in illiquid and inflated equities, analysts question how much value can be salvaged for investors.
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63 Articles
"Dive" of more than 2% on the Istanbul Stock Exchange
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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