Turkish authorities set Oct. 30 as the date to begin interim payments in the funds undergoing "extraordinary" liquidation as part of the ongoing process affecting dozens of funds following the launch of an investigation last month.
Vice President Cevdet Yılmaz said on Tuesday, while speaking in front of the parliamentary Plan and Budget Commission, that the payments would commence as of Friday following the national holiday on Thursday.
"As of Friday, I can say that the payments will begin. As part of the extraordinary liquidation, payments up to TL 1 million will begin as of Friday, through Işbank and Ziraat Bank," he said.
Authorities announced a series of measures since the middle of September to shore up market stability after some investment funds defaulted on redemption requests, triggering a sharp sell-off in Türkiye's benchmark stock index.
They announced the liquidation of 131 funds managed by seven companies. The liquidation process has been split into ordinary and extraordinary procedures.
The vice president said that the payouts in the ordinary process "have been largely completed."
"Payments will be made starting from the lowest amount, moving to higher amounts. These payments will be covered from three sources: the remaining balances in the funds, voluntary returns, and resources that can be quickly converted into cash. We expect that the payments to be made with these sources will be completed within 1-2 weeks, by mid-November," Yılmaz said.
"We are making every effort to ensure that the relevant institutions make the payments as quickly as possible. I can say that a significant amount will be paid on Friday," he added.
The Capital Markets Board (SPK) said earlier this week that it has decided to temporarily suspend the capital markets activities of Tera Portföy and Pusula Portföy and appoint banks to carry out the liquidation of funds established by the companies.
These companies were among those at the center of the investigation that was launched after a sell-off in September.
On Wednesday, the eighth meeting of a special fund coordination board established following the market turmoil was also held under the chairmanship of Yılmaz, the Directorate of Communications said in a written statement.
The meeting was attended by representatives from the Justice Ministry, the Treasury and Finance Ministry, and the relevant institutions and organizations affiliated with these ministries, the directorate said.
It also said that since the beginning, "the number of funds in liquidation has decreased from 131 to 38, and a total of TL 68 billion in-kind and cash liquidation payments have been made to 71,899 accounts."
The statement also confirmed that interim payments in the funds included in the extraordinary liquidation process are expected to begin on Friday, Oct. 30, 2026.
Close to half a million investors were impacted in the case.
