Erdoğan Asserts Turkish Financial Stability Amid Fund Market Crisis

President Recep Tayyip Erdoğan announced on Monday that Turkey's financial system remains strong and resilient despite a crisis affecting a specific segment of the fund market. Speaking after a Cabinet meeting in Ankara, Erdoğan stated that the problem is limited and has not spread to the broader financial system, asserting that the capital markets have the capacity to overcome the challenge.

The crisis was triggered by suspected share-price manipulation in thinly traded stocks, which led to heavy losses and redemption pressures for investment funds. Treasury and Finance Minister Mehmet Şimşek confirmed that legal proceedings are ongoing against those involved in market-distorting transactions.

The government is currently managing the liquidation process of closed funds and developing measures to prevent future occurrences. Şimşek added that liquidity measures to support stability will be maintained as the state investigates the manipulation.