Emergency Steps by Economic Administration for Borsa Istanbul Crisis
Following the liquidity and credit crisis in Borsa Istanbul, the Financial Stability Committee convened; the Central Bank took liquidity steps, while the CMB decided on fund liquidation and trading bans.
Following the sharp decline, fund defaults, and detentions in Borsa Istanbul, the Financial Stability Committee convened urgently under the chairmanship of Treasury and Finance Minister Mehmet Şimşek. In the wake of these developments, the CBRT took liquidity measures, while the CMB imposed trading bans due to manipulation allegations and liquidated numerous funds.
Financial Stability Committee Convened
The Financial Stability Committee, meeting under the chairmanship of Treasury and Finance Minister Mehmet Şimşek, stated that the volatility in the markets stemmed from a credit and liquidity crisis experienced in the funds of a limited number of portfolio management companies. The Committee announced that there is no structural risk in the capital markets.
Liquidity Steps from the Central Bank
The Central Bank of the Republic of Turkey increased the amount of funding to be provided to the market through weekly repo auctions to ease tightening liquidity conditions. In the Interbank Money Market, the borrowing limits of banks were increased 10-fold to 510 billion TL.
Investigation and Bans from the CMB
The Capital Markets Board imposed a 2-year stock market ban on responsible persons due to suspicious transactions in the shares of Katılımevim, Gündoğdu Gıda, and Destek Finans Faktoring. While criminal complaints were filed with the prosecutor's office, the stock market licenses of the relevant individuals were frozen.
Over a Hundred Funds Liquidated
The CMB decided to liquidate a total of 130 funds belonging to 7 companies founded by Tera, Pusula, Hedef, Atlas, A1, Pardus, and Bulls Portföy. These decisions aim to limit risks in the market.
Detentions and Overseas Travel Bans
Simultaneously with the market fluctuations, Istanbul Financial Crimes Investigation teams searched the headquarters of Info Yatırım. Info Yatırım and Hedef Holding Chairman Namık Kemal Gökalp was detained, while an overseas travel ban was issued for Tera Yatırım Holding Chairman Emre Tezmen.