Turkey’s capital markets remain resilient despite recent challenges in the investment fund sector, according to President Recep Tayyip Erdoğan. Addressing the issue after a Cabinet meeting in Ankara, Erdoğan emphasized that the current problems are confined to a segment of the fund market and do not threaten the broader financial system. He assured that authorities are actively working to safeguard financial stability and protect investors.
In response to the situation, the Turkish government is managing the liquidation of affected funds and developing measures to prevent similar occurrences in the future. Erdoğan also committed to taking necessary legal actions against those responsible for any activities that compromised market stability.
The issue arose earlier this month when authorities initiated investigations into suspected share-price manipulation involving several thinly traded stocks. These developments have led to losses and increased redemption pressures on certain investment funds.
Treasury and Finance Minister Mehmet Şimşek confirmed that legal proceedings against those implicated in the manipulation are ongoing. He also noted that measures to support financial stability will continue to be enforced.
Erdoğan is expected to convene with economic officials and relevant institutions to further assess the situation and discuss additional steps concerning the fund market. This meeting underscores the government’s commitment to maintaining a robust financial environment amid the current challenges.