Parliament committee backs interim payouts for investors in liquidated funds

On Oct. 14, the Plan and Budget Committee gave the green light to a bill that would permit interim disbursements of up to 1 million Turkish liras to eligible investors in funds being liquidated. The legislation covers unfinished liquidations of 131 funds ordered by the Capital Markets Board and still requires a vote by the parliament's general assembly. AK Party deputy Ersan Aksu, a sponsor of the bill, said roughly 350,000 investors are expected to recover their net investment through these interim payments while retaining rights to a final settlement.

The interim amounts will be based on actual cash deposits and withdrawals, without inflation indexing, and will be subtracted from the final payout. Should available cash be insufficient, the regulator may give priority to investors with the smallest net balances or establish a minimum payment for all qualified parties. Any shortfall in fund assets will be adjusted for inflation up to the liquidation date, using consumer and producer price indices.

Payments are to be sourced from the funds' assets and recovered losses, with no use of state funds. Earlier, 43,643 investors in funds managed by A1, Bulls and Pardus received 6.4 billion liras in interim payments.