Turkey extends fund liquidation deadline, detains executives and freezes assets amid market turmoil
Turkey has lengthened the liquidation period for dozens of troubled investment funds, while authorities have detained several fund executives and frozen their assets.
In response to a liquidity crunch that caused a steep decline in Turkey’s benchmark index, regulators instructed Ziraat Bank and Işbank to oversee the liquidation of 131 investment funds managed by seven portfolio companies on the TEFAS platform, extending the liquidation window from three to six months. The funds hold assets exceeding TL 890 billion. Treasury Minister Mehmet Şimşek assured that the process would not pressure Borsa Istanbul, citing new safeguards.
The Justice Ministry arrested Pusula Holding chair Serdar Turhan, Tera Yatırım Holding chair Emre Tezmen and several other executives, uncovering transfers of $15 million to Switzerland and $25 million to another account. Additional detentions included Nihat Kırmızı of Doğa Sigorta and 15 people linked to Katılımevim share-trading investigations, with assets of numerous firms frozen and strict monitoring imposed on transactions involving board members and relatives. Authorities continue to probe alleged share-price manipulation across several listed companies.
Why it matters
The measures are intended to stabilize Turkey’s financial markets and curb contagion from failing funds.
In this story
Related stories
4 in this thread