Turkey’s Capital Markets Board assigned 131 investment funds to Türkiye İş Bankası and Ziraat Bank for liquidation. The funds were managed by seven portfolio companies linked to an official investigation. Reports published on 18 September placed their assets above TRY890 billion.
The Financial Times reported the 131-fund decision and the appointment of the two banks, while Turkish reporting described a three-month liquidation window unless extended.
BANKS WILL OVERSEE THE WIND-DOWN
İşbank was authorised to liquidate the funds managed by Tera Portföy, while state-owned Ziraat Bank took responsibility for the funds of A1 Capital, Atlas, Bulls, Hedef, Pardus and Pusula.
Reuters put the funds’ assets at about $18.3 billion. The 131-fund count reflects the later regulatory action, after the regulator ordered 130 funds into liquidation on 17 September.
INVESTOR PAYMENTS DEPEND ON THE PROCESS
The SPK set out how the funds' assets will be sold and the proceeds distributed to investors, with payments possibly made in stages as assets are liquidated. Estimates of the number of investors affected ranged from about 350,000, cited by Bloomberg, to more than 500,000 in Turkish reports.
Under the SPK's rules, the liquidation must end by the first business day after three months from the announcement unless the regulator extends the deadline.