Statement from Minister Şimşek: 17 Funds Liquidated

Treasury and Finance Minister Mehmet Şimşek made evaluations regarding fund investigations and recent developments in the market at the National Vision in Economy and Finance Summit held at the VakıfBank General Directorate Campus. Minister Şimşek reported that 17 funds belonging to companies included in the scope of liquidation due to their risky financial structures were liquidated and the money of 43,000 participants was transferred to banks.

Developments in the Fund Market

Treasury and Finance Minister Mehmet Şimşek stated that market-disrupting activities are at the root of the stress experienced in the fund market and in some of the portfolio management companies.

He stated that transparency was increased and institutional capacity was improved with the Capital Markets Board regulations in August.

Troubled Funds and New Regulations

Stating that problems were experienced in 131 out of approximately 2,900 funds and that some of them were liquidated as a precautionary measure, Şimşek noted that very serious measures have been taken to prevent the recurrence of similar situations.

He announced that the number of issuances of hedge funds has been tied to the institutional capacity of the company, and a minimum 10 percent government domestic debt security or lease certificate requirement has been introduced for hedge funds that have the characteristics of a money market fund.

Company Liquidations and Fund Transfers

It was announced that 3 portfolio management companies named A1 Capital, Bulls, and Pardus, whose financial structures were seen as risky, were taken into the scope of liquidation.

It was announced that 17 funds belonging to these companies and open to TEFAS were liquidated, and the money of a total of 43,000 fund participants was transferred to the relevant banks.