Fund Crisis at Borsa Istanbul and 3.5 Trillion Lira Value Loss

As a liquidity crisis in investment funds at Borsa Istanbul has caused a market value loss exceeding 3.5 trillion lira since September 15, the Ministry of Treasury and Finance and the Parliament are preparing to take new steps.

Following the wave of selling that began with the liquidity crisis in investment funds at Borsa Istanbul, a meltdown exceeding 3.5 trillion lira has occurred in the BIST ALL market value since September 15. Minister of Treasury and Finance Mehmet Şimşek announced that voluntary refunds will be requested from those who earned real gains of 10 million lira or more from liquidated funds, and that legal proceedings will be initiated otherwise. Additionally, it was stated that payments will be made for 390,000 accounts with gains of up to 1 million lira.

Vice President Cevdet Yılmaz announced that a legal regulation that would allow for extraordinary liquidations during fund crises is on the Parliament's agenda. Meanwhile, the Istanbul Chief Public Prosecutor's Office has launched an investigation into the suspicion that Merrill Lynch International, under Bank of America, generated 8 billion TL in gains prior to the operation.