Türkiye Rejects State Funding for Losses from Liquidated Investment Funds
(MENAFN) Türkiye will not allocate Treasury funds to compensate private investors for losses linked to investment funds undergoing liquidation, Vice President Cevdet Yilmaz says, explaining that repayments will instead come from fund assets and recovered proceeds.
Addressing parliament on the Fund Coordination Board, which he chairs, Yilmaz says 131 funds are currently being liquidated, accounting for a limited share of the overall market.
“In other words, the problem has occurred in a limited segment of the fund market,” he said.
The funds represent 4.6% of all investment funds and 7.7% of their combined portfolio value. Their total portfolio value stood at the equivalent of 2.4% of household financial assets as of Oct. 5.
Yilmaz says the situation does not pose a systemic threat to Türkiye’s financial system, while emphasizing that its limited scale does not make the issue insignificant.
Yilmaz says liquidation rules generally require available resources to be distributed to investors according to their respective holdings.
For funds placed under extraordinary liquidation procedures, authorities plan interim principal repayments of up to 1 million Turkish liras ($20,326), with priority given to smaller investors and money market funds.
Addressing parliament on the Fund Coordination Board, which he chairs, Yilmaz says 131 funds are currently being liquidated, accounting for a limited share of the overall market.
“In other words, the problem has occurred in a limited segment of the fund market,” he said.
The funds represent 4.6% of all investment funds and 7.7% of their combined portfolio value. Their total portfolio value stood at the equivalent of 2.4% of household financial assets as of Oct. 5.
Yilmaz says the situation does not pose a systemic threat to Türkiye’s financial system, while emphasizing that its limited scale does not make the issue insignificant.
Yilmaz says liquidation rules generally require available resources to be distributed to investors according to their respective holdings.
For funds placed under extraordinary liquidation procedures, authorities plan interim principal repayments of up to 1 million Turkish liras ($20,326), with priority given to smaller investors and money market funds.
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