Treasury and Finance Minister Şimşek makes statement on fund market and deposits

Treasury and Finance Minister Mehmet Şimşek announced that there has been a net outflow of 647 billion TL from the fund markets since September 17, with 287 billion liras of this originating from foreign investors. Stating that the outflowing resource has largely turned towards Turkish lira deposits, Şimşek noted that the increase in TL deposits during the same period was 685 billion liras.

Minister Şimşek stated in a joint broadcast on Bloomberg HT and Habertürk that those engaging in market-disrupting activities have been identified and that, in the first phase, those generating real earnings of 10 million liras and above will be targeted. Stating that the Ministry of Justice will step in if the voluntary return process is not implemented, Şimşek conveyed that 40.8 billion TL was paid to 45,747 accounts under 66 funds linked to three portfolio management companies whose liquidation has been completed. In addition, he announced that with the enactment of the bill accepted in the TBMM Plan and Budget Committee, another 390,000 accounts will be liquidated.

Expressing that the banking sector's direct risk from the fund crisis is at the level of 1.3 billion liras, Şimşek emphasized that they do not foresee a systemic risk. Stating that he finds MSCI's statements regarding Turkey's capital markets constructive, the Minister noted that audit and surveillance mechanisms in capital markets will be strengthened, and sanctions against manipulations will be increased.