Turkey’s Capital Markets Board (SPK) has initiated the liquidation of 131 investment funds following a series of redemption failures. The total value of the assets involved is approximately $18,3 billion, or 890 billion Turkish lira. The process affects roughly 350 000 investors who are currently awaiting information on potential repayments.
The regulator is considering pooling the frozen assets to simplify the distribution process, rather than liquidating each fund individually. Seven portfolio management companies are involved in the unwinding, with major institutions like Turkiye Is Bankasi and Ziraat Bankasi appointed to oversee the liquidation of specific funds.
The crisis began when Pusula Portfoy and Tera Portfoy reported an inability to meet investor demands. Tera Portfoy alone faced redemption requests totaling about 300 billion lira, or $6,15 billion. Following these disclosures, the Borsa Istanbul benchmark index fell by 2,6% during the day.
Authorities have frozen the assets of executives at several firms, including Tera Yatirim, Pusula Finans Holding, Hedef Holding, and Bulls Portfoy, while investigations into possible market manipulation continue. The formal liquidation process began on September 18, with a target completion timeframe of three months.
