Ankara, Sept. 29 (SANA) Turkish President Recep Tayyip Erdogan said Monday that problems affecting part of the country’s investment fund market posed no broader threat to the financial system, as authorities investigate suspected market abuses and liquidate more than 100 funds.
“The Turkish financial system is strong,” Erdogan said after chairing a Cabinet meeting in Ankara, according to Anadolu Agency. He said the problem was confined to a limited segment of the fund market and there was no risk of it spreading through the wider financial system.
Turkey’s Capital Markets Board decided on Sept. 17 to liquidate 131 funds managed by seven portfolio management companies after detecting unusual price movements in stocks linked to some of the funds.
Erdogan said the liquidation process was being handled carefully and investigations were continuing into people suspected of making illicit profits through investment funds or stocks. Those found to have engaged in practices that destabilized markets would face legal action, he said.
The government is also preparing administrative and legal measures aimed at improving the functioning of capital markets. Erdogan said he would meet Tuesday with his economic team, senior advisers and officials from relevant institutions to discuss market regulation and steps to prevent similar problems.
Treasury and Finance Minister Mehmet Simsek said separately on X that the government was taking measures to protect investors and preserve market stability.
Legal proceedings against those suspected of violating market rules would continue, Simsek said, while individuals and companies not connected to the alleged activities would not face action.
He said maintaining the real economy’s capacity for investment, employment, production and exports remained a government priority.
R A H / ABD
