Türkiye Moves to Calm Markets, Rules Out Systemic Risk

(MENAFN) Türkiye's Financial Stability Committee sought to calm investor nerves on Thursday, declaring that recent turbulence on Borsa Istanbul poses no threat to the broader health of the country's capital markets and promising rapid intervention to ease liquidity strains.

The committee, led by Treasury and Finance Minister Mehmet Simsek, convened to review the latest market developments and traced the volatility to credit and liquidity troubles at a handful of funds run by a small group of portfolio management firms, according to an official statement.

“There is no fundamental or structural risk concerning the functioning of Borsa Istanbul and our capital markets,” the committee said.

Officials characterized the fallout as contained. “The problem is concentrated in a specific segment of the fund market and is temporary and manageable,” the statement added.

Members reviewed a range of options to keep markets functioning smoothly and protect wider financial stability, signaling that action would not be delayed. “All necessary measures within this scope will be swiftly implemented by our relevant institutions,” the committee said.

Those steps will focus chiefly on relieving liquidity pressure and containing the fallout to prevent it from spreading into other corners of the financial system.

The committee further warned that regulators and supervisory bodies would keep exercising their authority "with determination" against anyone found responsible for disrupting the markets, and called on the public to trust only information released through official channels as the situation develops.

“The committee will closely monitor developments and regularly inform the public,” the statement concluded.

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