Türkiye's ruling party has submitted legislation to repay investors caught up in last month's investment fund collapse, while Vice President Cevdet Yılmaz said on October 12 that no public money will be used in the process.
The nine-article bill, submitted to parliament on October 9, covers funds the Capital Markets Board (SPK) ordered into liquidation on September 17. Justice and Development Party (AKP) parliamentary group leader Abdullah Güler said it would allow roughly 350,000 of the approximately 455,000 affected investors to recover their net principal through advance payments of up to 1 million liras.
Key terms
Investors whose net investment is below 1 million liras would receive the full amount, and those with larger holdings would receive up to that cap, subject to available assets. If cash falls short, the SPK could prioritize the smallest balances or set a common minimum advance. Inflation compensation would be calculated at final settlement using the average change in consumer and domestic producer prices.
Portfolio management companies would bear primary liability, and individuals found responsible could be held personally liable even after leaving office. The Savings Deposit Insurance Fund (TMSF) would hold recovered money in separate accounts for each fund. Investors found to have taken part in market abuse would be excluded. The bill was due to go to parliament's Plan and Budget Commission before a vote in the General Assembly.
Justice Minister Akın Gürlek told the daily Sabah that investigators had identified more than 187 billion liras in allegedly unlawful gains by 141 individuals and 73 companies through the Tera, Pusula and Hedef funds. These remain allegations.
'No public funds'
Speaking on an Anadolu Agency broadcast, Yılmaz said the 131 problem funds managed by seven companies account for 4.6% of all funds and 7.7% of the total fund portfolio. Three of the seven firms had accepted ordinary liquidation as of October 8, payments had reached nearly 44,000 people and 17 funds had exited the system.
He stressed that the state provides no guarantee for investment funds, unlike bank deposits, which are insured up to a limit. "There will be no use of public funds," he said, adding that legal responsibility does not disappear once unlawful gains are returned. A State Supervisory Council team of about 15 inspectors has launched a broad investigation.
Sources
- Fund bill sets out repayment terms for affected investors
- No public funds for bank liquidations, says VP Yılmaz
Photo: Kerhaneci31 / CC0, via Wikimedia Commons
