Turkish Finance Officials Resign Amid Investment Fund Crisis
Mahmut Sütçü and Osman Çelik resigned from top Turkish financial posts following a market crisis that forced the liquidation of 131 investment funds.
The head of the Capital Markets Board and a deputy finance minister resigned on Monday following a month of instability in the Turkish investment fund industry. Mahmut Sütçü, head of the Capital Markets Board (SPK), cited health problems for his departure, while Deputy Treasury and Finance Minister Osman Çelik requested immediate retirement in a resignation tendered to Treasury chief Mehmet Şimşek.
The resignations follow a market sell-off that left several funds unable to meet investor redemption requests. This triggered investigations into suspected price manipulation of thinly traded stocks. In response, the SPK suspended trading and initiated liquidation for 131 funds managed by seven asset management companies, a move affecting nearly 500,000 investors.
To manage the fallout, authorities created a special coordination board, which held its sixth meeting on Sunday. The BIST 100 main stock index fell 2.49% to close at 11,430.14 points following the news of the leadership departures.
