Minister Şimşek: 66 of 131 funds were completely liquidated Minister of Treasury and Finance

Minister of Treasury and Finance Mehmet Şimşek made statements about the liquidation process of the funds.

Emphasizing that the liquidation process regarding the fund issue is going at the speed and within the framework they envisaged, Şimşek said that they have determined the basic principles such as transparency, efficiency and justice with the liquidation.

Şimşek reminded that the draft law on liquidation was discussed in the Grand National Assembly of Türkiye for the interim payment and stated that after the law is passed, payments up to 1 million lira will be made quickly, depending on the status of the resources in the funds.

Pointing out that ordinary liquidation is implemented for portfolio management companies whose financial structures are relatively manageable, Şimşek continued as follows:

"In total, 131 funds within 7 portfolio management companies were liquidated. 66 of the 131 funds taken into liquidation were completely liquidated. The full liquidation of 3 out of 7 portfolio management companies was completed. 40.8 billion lira was paid to 45 thousand 747 accounts and the normal liquidation was carried out successfully. Money market fund investors in the 3 portfolio management companies subject to normal liquidation and whose liquidation was completed, let alone suffered losses, on average compared to September 17. They received an additional dividend return of 1.43 percent. Since the values of the stocks were inflated, that is, the values increased fictitiously and independently of the fundamentals of the company, investors in stock-intensive funds received an average of 58 percent of the portfolio value on September 17. In other words, they received a 42 percent lower payment, but this is entirely due to the decrease in the values of the stocks.

Minister Şimşek stated that last week the CMB decided to subject the funds of Hedef Portfolio Management Company to normal liquidation. Stating that there are 31 funds in Hedef Portföy Management Company, 4 of which are money market funds, Şimşek said, "There are 23 thousand 925 accounts in total. The aim of our institutions is to subject Hedef Portföy Management Company to the normal liquidation process and complete this process as of this week. Probably by the end of this week, the normal liquidation of 4 out of 7 portfolio management companies will be completed. Why is this important? Because this process is managed in a transparent, effective and fair manner." he said.

Stating that there are three relatively large portfolio management companies left, Şimşek said, "Tera, Pusula and Atlas are subject to extraordinary liquidation as of today. The owners of Atlas have been in dialogue with the liquidator institution for a while and have shown a will to return some assets, values ​​or fund resources that were taken out. There is a negotiation process. Measures have been taken regarding the owners. According to what the institution responsible for the liquidation told us, some resources were taken out of the fund, we are talking about the return of that resource." he said.

Source: TRT Haber Ekonomi RSS (Open Press / Translated Full Text)