Liquidity and liquidation steps from economic administration for markets
Following selling pressure and defaults in free investment funds, the economic administration took measures. The Central Bank increased repo auctions while the CMB initiated a liquidation process for funds.
Following the selling pressure originating from free investment funds and the default of certain portfolio management companies, the economic administration took successive steps. The Central Bank expanded its repo auction, the CMB initiated a liquidation process for certain funds, and Borsa Istanbul closed the day with an increase.
Selling Pressure in the Markets
The selling pressure originating from free investment funds and the default of portfolio management companies caused volatility in the markets. Investors' demand for cash and speculative rumors triggered the process.
Expansionary Steps from the Central Bank
To meet the demand for liquidity in the market, the Central Bank increased the funding amount in 1-week repo auctions to 300 billion lira and raised borrowing limits.
CMB and Committee Decisions
The Capital Markets Board initiated the liquidation process regarding one hundred thirty funds of seven portfolio companies. The Financial Stability Committee emphasized that the issue is temporary and manageable.
Developments at Borsa Istanbul
Led by deep and liquid stocks, Borsa Istanbul completed the day with a three percent increase at thirteen thousand five hundred nine points.