Investors trapped in four investment funds in Turkey are set to receive advance compensation payments of up to 1,000,000 Turkish liras — equivalent to approximately €18,000. Turkish authorities placed the funds under liquidation proceedings days ago, while officials seek ways to convert their assets into cash and return money to affected investors. Turkey’s Capital Markets Board (SPK) has now offered an initial resolution to the crisis that erupted just days ago, with 455,758 investors exposed to 131 funds with a combined value of approximately $18 billion.
Turkey: Which investors will receive up to 1 million liras
The SPK decided to return a portion of investors’ funds immediately, without requiring them to wait for the liquidation process to conclude and final compensation amounts to be determined. The measure applies to investors in the Tera, Pusula, Atlas, and Hedef funds, provided their account details have been verified and their invested amount confirmed. According to the Capital Markets Board, investors with a net investment of up to one million liras will receive the full amount, while those who invested more will receive up to one million liras as an initial payment.
The SPK clarifies that these payments constitute an advance. The final amount each investor is entitled to will be determined once the liquidation process is complete. Payments will begin with money market funds.
Special arrangement for investors who already sold their shares
A separate arrangement has been established for investors who sold their fund shares before the liquidation proceedings began and had already realized significant profits. The SPK is creating dedicated accounts into which these investors may voluntarily return a portion of their gains. The funds collected will not go to the state but will instead be distributed to the loss-affected investors of the corresponding fund through Turkish banks.
State takes control of management
The crisis triggered broader intervention by Turkish authorities in the financial sector. On Wednesday (September 30), management of three investment banks and two factoring companies was transferred to Turkey’s Savings Deposit Insurance Fund (TMSF).
At the same time, Turkish authorities are launching investigations and audits to determine what went wrong and whether any administrative or legal liability has arisen. It is worth noting that Turkish President Recep Tayyip Erdoğan also announced the formation of a special council with expanded powers, to be chaired by Vice President Cevdet Yılmaz, which will be responsible for coordinating the actions of relevant state agencies.
