Onur Duygu's analysis of the fund crisis and liquidation in capital markets

Ekonomi Gazetesi columnist Onur Duygu evaluated the fund crisis in capital markets and the 900 billion lira liquidation process, reporting that a total of 131 funds have been included in the liquidation scope and that the transactions for 97 funds are targeted to be completed within October.

Stating that the fund crisis in capital markets has reached a critical point in terms of public conscience, Onur Duygu expressed that regulatory and supervisory institutions were late in taking action. Recalling that allegations of manipulation in the funds had been discussed since November and that a draft law text was prepared in February, but the final regulation was issued on August 28, Duygu noted that the failure to take steps during the intervening 6-month period worsened the balance sheet, with the total liquidation size reaching approximately 900 billion liras.

Reporting that 131 funds were included in the liquidation scope and that other funds of 7 portfolio management companies on TEFAS were closed to trading, Duygu stated that the grievances of approximately 43,000 investors in 17 funds of A1, Buls, and Ardus portfolio companies have been resolved, and that with the 49 funds closed last week, the liquidation of 66 funds belonging to 3 portfolio companies has been completed. It was emphasized that with the inclusion of Hedef Portföy and Atlas Portföy in the processes, the liquidation of a total of 97 funds will be completed within October, and that the greatest burden of the crisis is concentrated on Tera and Pusula portfolio companies, which have a liquidation balance of approximately 700 billion liras.

Touching upon the draft law regulation on the Parliament's agenda, Duygu stated that investors are following the priority right of claim and settlement finality. Clarifying the perception in the public that 'an interim payment of 1 million liras will be made to every investor,' Duygu explained that the interim payment cannot exceed the share value calculated before the payment and that the balance of each fund is not sufficient to cover this amount. Expressing that it is essential to announce a transparent and clear calendar, Duygu stated that the approximately 700 billion liras of resources exiting the funds have shifted mainly to bank deposits instead of foreign currency, and that they have observed that outflows have slowed down in recent days and inflows into money market funds have restarted.