$18 Billion Investment Fund Crisis; Erdogan Holds Meeting with Economic Managers

According to Kurdistan News Agency, the investment fund crisis has become one of the most important economic and political issues in Turkey. The case involves about 131 funds with more than 450,000 investors, and the total assets of the funds under investigation are estimated at nearly $18 billion.

The investigations intensified after a number of funds and financial companies encountered difficulties in responding to investors' requests to withdraw money, despite registering abnormal returns.This situation led to a wave of selling on the Istanbul Stock Exchange and a sharp decline in the value of a number of stocks.

After a cabinet meeting on Sunday evening, September 28, Erdogan said that anyone who encroaches on people's property and rights through market manipulation, illegal transactions or corruption will face the government's response.

The Turkish president also announced that he will meet with economic managers and officials of relevant institutions on Monday, September 29. The meeting is scheduled to review the latest status of the investigation and the legal and administrative measures necessary to strengthen the health and transparency of the capital market.

Meanwhile, the Turkish Capital Markets Board has charged 37 people with crimes in connection with the trading of shares of Terra Financial Yatırımlar Holding. The body has also banned 39 individuals and companies from trading on the stock exchange for two years and revoked the operating licenses of 24 people.Turkish authorities are trying to contain the fallout from the $18 billion fund crisis, the Financial Times reported. The ongoing crisis has not only inflicted losses on investors, but also undermined trust in regulatory mechanisms and the international credibility of Turkey’s capital market, the newspaper said.