Turkey Orders Payments for Investors of Liquidated Funds

The Capital Markets Board of Turkey announced interim payments on Thursday for retail investors affected by a severe market crisis. The regulator ordered the liquidation of 131 investment funds managing over $20 billion, impacting approximately 455,758 investors. Those with holdings in funds managed by Tera Portfoy, Pusula Portfoy, Atlas Portfoy, and Hedef Portfoy will receive their full net investment if it is below 1 million lira, while larger investments will be capped at a 1 million lira interim payment.

The crisis stemmed from suspected price manipulation in thinly traded stocks, which triggered heavy losses and redemption pressures. This selloff pushed Turkey's main stock index into a bear market, resulting in its worst monthly performance since 2008.

Justice Minister Akin Gurlek reported that 217 suspects are currently under investigation for market manipulation. Of those suspects, 56 are jailed pending trial.