Capital Markets Statement from Minister Şimşek Following MSCI Decision
Following MSCI's freezing of Turkey's index changes and its June 2027 warning, Minister Mehmet Şimşek announced that legal regulations will be completed and additional steps will be taken.
MSCI announced that it has temporarily frozen certain index changes regarding Turkish equities, while evaluating a status downgrade if sufficient progress is not achieved by June 2027. Following these developments, Treasury and Finance Minister Mehmet Şimşek stated that they plan to complete legal regulations to combat capital market crimes by the beginning of 2027 and that necessary additional steps will be taken without delay.
Index provider MSCI announced that it has temporarily frozen certain index changes regarding Turkish equities until a second notice. The institution reported that if sufficient progress is not achieved in regulation and supervision by June 2027, Turkey's transition from "Emerging Market" status to "Frontier Market" or "Standalone Market" status could be evaluated. In its statement, MSCI noted that additional time is needed to assess whether the steps taken by Turkish authorities provide the structural improvements expected by investors.
Treasury and Finance Minister Mehmet Şimşek stated that they plan to complete legal regulations that will strengthen the fight against capital market crimes, including coordinated fund transactions, by the beginning of 2027. Sharing a post on his social media account regarding fund market regulations, Şimşek emphasized that information flow has been strengthened through the Capital Markets Board's regulations and ultimate shareholding has been made transparent. Şimşek expressed that the results of the regulations will be closely monitored and necessary additional steps will be taken without delay.