Fund crisis in the stock market and its effects on the markets are being evaluated
While fund manipulations in the markets have led to the victimization of hundreds of thousands of investors, the lasting effects of the crisis on the Turkish economy are tied to liquidation processes and the environment of trust.
While the fund crisis and manipulations in the stock market victimize investors, the potential reflections of the process on the Turkish economy and the steps taken are on the agenda of the economic administration.
Economic Impacts of the Fund Crisis
While the fund crisis and manipulations in the stock market damage confidence in the economy, the government has started to compensate victims' losses through the fund within the scope of the investigation. How permanent this crisis will be depends on the liquidation process not being prolonged and confidence in the capital markets being re-established.
Central Bank and Expert Opinions
Central Bank of the Republic of Turkey Governor Fatih Karahan stated in his speech in Parliament that the risk of the fund crisis spreading to the general financial system remained limited. While international credit rating agencies state that the effects of the crisis will be limited, economist Nouriel Roubini noted that Turkey can make the damage temporary with reforms and audits.
Measures Taken by Institutions
Vice President Cevdet Yılmaz announced that they made a rapid liquidation decision and quarantined the problematic funds to prevent them from spreading generally. While the prosecutor's office applies precautionary measures for those who obtained unjust gains, relevant institutions continue to work on the receivables of the fund victims.
Fund Outflows and BES Table
While large outflows have been experienced from various funds in the last month, the fact that the money does not go outside the financial system is evaluated as a positive detail. In the Private Pension System (BES), a positive picture stands out in terms of the number of participants and fund size.
Contraction in the Stock Market and Consumption
While the declines in the stock market affect investors' portfolios, the contraction in trading volume has caused shrinkages in brokerage houses. The decrease in consumer spending is shown among the elements that create a downward trend in inflation while putting pressure on growth.