Turkey's Vice President says no state money will fund troubled fund liquidations

In a live interview, Vice President Cevdet Yılmaz declared that the state will not finance the liquidation of troubled investment funds, emphasizing that legal responsibility persists for any illegal deals. He reported that seven companies managing 131 funds, which make up 4.6% of all funds and involve more than 455,000 investors, have been quarantined to prevent wider market contagion. Ongoing measures include arrests, custody, asset freezes and travel bans, while a judicial process proceeds.

The Fund Coordination Board has convened four times to set key principles, and the State Supervisory Council has deployed around 15 inspectors to audit all relevant institutions. Yılmaz added that three of the companies have already undergone ordinary liquidation, with payments made to about 44,000 citizens, and that neither ordinary nor extraordinary liquidation will draw on public resources because there is no state guarantee for capital markets.