Erdoğan says fund crisis poses no systemic risk and vows legal action

President Recep Tayyip Erdoğan, addressing reporters at the U.N. General Assembly in New York, asserted that the recent upheaval among a group of investment funds does not endanger Turkey’s financial system or the broader economy. He emphasized that the issue is limited to a specific segment of the capital markets and pledged swift legal action against any responsible parties. After the Capital Markets Board placed 131 funds from seven companies—holding more than $18 billion and serving nearly half a million investors—into liquidation, prosecutors have arrested or detained dozens of fund managers and senior executives on charges of share-price manipulation and fraud.

Justice Minister Akın Gürlek said recovering investors’ money is a top priority, and Treasury and Finance Minister Mehmet Şimşek will hold meetings with relevant agencies to manage the technical aspects of the liquidation and safeguard market stability. Erdoğan also warned that new legal and administrative measures could be introduced to prevent a recurrence, stressing the need for transparent handling of the process.