Turkey's VP Yılmaz says market turbulence is limited and temporary

At a gathering in the province of Elazığ, Vice President Cevdet Yılmaz asserted that Turkey's capital markets are fundamentally sound, with recent problems limited to the investment-fund segment. He noted that the government is taking both administrative and legal actions to address the situation, which he characterized as a short-term issue rather than a systemic flaw. The Istanbul Chief Public Prosecutor’s Office has formally requested the Central Securities Depository to trace fund flows, while Justice Minister Akın Gürlek reported that assets of 46 legal entities, 18 funds and 42 individuals have been frozen following a review of outflows from July 1 to August 16.

The Capital Markets Board disclosed that 131 funds slated for liquidation hold roughly 826 billion Turkish lira across 455,758 investors, and arrests have already been made among executives of several investment firms. Yılmaz concluded that once the temporary problem is resolved, the markets are expected to emerge stronger.