Türkiye's capital market is resilient and its foundations are strong, President Recep Tayyip Erdoğan said Monday as he reiterated that the recent issue in the market is restricted to a segment of the market and vowed necessary legal action.
"The problem in question has taken place in a limited part of the fund market. There is no risk that has spread to our financial system," Erdoğan said.
"The Turkish capital markets is resilient and has strong foundations. It has more than enough capacity to overcome this challenge with ease," he said in live remarks after the Cabinet meeting in Ankara.
"When the peace of our people is at stake, and when the economic security, prosperity, and development of our 86 million citizens are at stake, we will not show even the slightest hesitation in taking action," he added.
He also went on to say that authorities "are proceeding with the utmost caution," given the nature of capital markets, and added that work concerning the liquidation process of the funds that have been closed "is being carried out meticulously."
The president said the government was working to ensure that all necessary steps were being taken, adding that work was underway to implement measures to prevent such a problem from happening again.
"Türkiye has an economic size approaching $2 trillion today. Türkiye's financial system is strong," Erdoğan also said.
Legal proceedings against those involved in market-distorting transactions in the fund market are continuing, Treasury and Finance Minister Mehmet Şimşek said earlier on Monday, adding that liquidity measures needed to support financial stability would be maintained.
Authorities moved in quickly earlier this month to ensure market stability and launched investigations into suspected share-price manipulation in a number of thinly traded stocks that triggered heavy losses and redemption pressures at investment funds.
Meanwhile, Erdoğan also said he would meet his economic team and representatives from the relevant institutions on Tuesday to discuss the matter, adding that the government would not allow people's rights to be violated.
