Statement on Fund Liquidation from CBRT Governor Karahan

Central Bank of the Republic of Turkey Governor Fatih Karahan shared the details of the fund liquidation process during his presentation at the Turkish Grand National Assembly Planning and Budget Commission and in his subsequent answers to questions, emphasizing that no public resources will be used.

No Public Resources Will Be Used in Fund Liquidation

Central Bank of the Republic of Turkey Governor Fatih Karahan announced that public resources will not be used in the fund liquidation process.

Reminding that the Fund Coordination Board has been established, Karahan stated that it was decided not to use public resources in the process.

Observed Increase in Deposits

Karahan expressed that a significant portion of domestic residents exiting the funds have turned toward deposits.

It was officially reported that total deposits experienced an increase of over eight hundred billion liras during this period.

Financial Confidence and Tight Stance

Conveying that daily monitoring is conducted, Karahan noted that the speed of outflows from funds has slowed down in recent days.

It was explained that, thanks to the tight monetary stance and the coordination of institutions, the contagion risk currently remains limited.

Macroeconomic Impacts and Expectations

He addressed the effects of the liquidation process under three main headings: wealth, reserves, and the real sector.

It was stated that, in terms of the real sector, the share in the liquidated funds is limited and its impact will also be low.