Minister Şimşek evaluates fund market and inflation

Treasury and Finance Minister Mehmet Şimşek stated that there is no general risk regarding the temporary liquidity crunch in the fund markets and the decline in the stock market, announcing that a limited number of funds have been put into the liquidation process by the CMB.

Situation in Fund Markets

Treasury and Finance Minister Mehmet Şimşek stated that recent fluctuations in the fund market stem from a temporary liquidity crunch. Emphasizing that the problems occurred in a limited number of funds, Şimşek reported that there is no systemic risk across the markets in general.

Liquidation Process and Investor Rights

Stating that problems were detected in 131 out of 2,038 funds across Turkey, Minister Şimşek noted that these funds, operated by 7 portfolio management companies, have been taken into the liquidation process by the Capital Markets Board. It was stated that these decisions will not put pressure on the stock market and that investor rights will be protected.

Effects of Inflation and War

Touching upon the reflections of regional conflicts on the economy, Şimşek conveyed that the rise in oil prices has changed inflation forecasts. It was stated that with the necessary measures being taken, efforts are being made to keep inflation at targeted levels, and the year is projected to close within the 28-29 percent range.

Budget Discipline and Support

Expressing that budget discipline is maintained with determination, Minister Mehmet Şimşek announced that defense expenditures have been increased by 229 percent. In addition, information was shared that 750 thousand social housing supports have been provided to citizens.