Turkey Committee Reviews Payout Plan for 131 Funds Facing Liquidation

A parliamentary committee began reviewing a bill on payments to investors in 131 funds ordered into liquidation by Turkey’s Capital Markets Board, known as SPK. The proposal would permit interim payments of up to 1 million lira per person.

Ersan Aksu, a lawmaker who is among the bill’s lead sponsors, said payments would come from each fund’s own assets and amounts recovered from people or companies responsible for unlawful acts. He said the process would not use Treasury resources or public budget funds.

The proposed payout measure is each investor’s net investment, based on money actually paid into and withdrawn from a fund. Aksu said that amount would be adjusted through liquidation using the average of changes in consumer and domestic producer prices.

The bill would cap interim payments at an investor’s net investment, with full payment possible when that amount is below 1 million lira. If available cash is insufficient, payments would start with investors who have the smallest net investments.

Opposition lawmakers sought a subcommittee review and said they needed more information about the funds. Aksu said the 131 funds represented 4.6% of the market’s fund count and 7.7% of its total portfolio value. The committee moved on to discuss the bill as a whole.