A Turkish market regulator said on Thursday it would begin making interim payments to investors in funds that were earlier ordered to be shut down after an alleged market-manipulation case, which has triggered losses and redemption pressure.
Top officials, meanwhile, reiterated that the legal process is proceeding and that institutions are continuing their work "in close coordination."
The Capital Markets Board (SPK) said in a statement on Thursday that it has approved interim payments of up to TL 1 million (nearly $20,400) per eligible investor in funds established by Tera, Pusula, Atlas and Hedef portfolio management companies that are undergoing liquidation.
Investors whose net investment amount is TL 1 million or above will receive TL 1 million as an interim payment, the board said.
The procedure will start with money market funds, the SPK said.
In a separate statement, the SPK said the Savings Deposit Insurance Fund (TMSF) opened up "voluntary refund accounts" for those who want to voluntarily return "excessive gains" made as a result of fund sales carried out before liquidation of the funds.
The fund crisis erupted last month after suspected price manipulation in a number of thinly traded stocks triggered heavy losses and redemption pressures at investment funds.
Turkish authorities moved to contain the impact by ordering the liquidation of funds, launching a legal procedure and detention measures against a number of top executives, including those of the asset management companies such as Tera and Pusula.
Türkiye's banking regulator also decided Wednesday to transfer the management of three investment banks and two factoring companies to the TMSF, following developments linked to an ongoing fund investigation.
The decisions cover Tera Investment Bank, Destek Investment Bank, Hedef Investment Bank, Destek Finance Factoring and Tera Finance Factoring, according to a statement from the Banking Regulation and Supervision Agency (BDDK).
Almost half a million investors hold stakes in more than 100 Turkish investment funds with combined assets estimated at a figure close to $20 billion that authorities ordered to be liquidated.
Treasury and Finance Minister Mehmet Şimşek, commenting on the expected payments, said in a social media post on Thursday that "necessary steps are being taken to ensure payments to investors are made in the shortest possible time and at the highest level."
He noted that institutions were continuing work on the affected funds with meticulous coordination.
"Our Justice Ministry is steadfastly conducting the legal process to protect investors' rights and ensure accountability for those responsible," Şimşek said on X.
Earlier this week, it was announced that a special board was formed to oversee the rapid liquidation of investment funds caught up in the recent turmoil.
Vice President Cevdet Yılmaz said on Thursday that the board is due to convene for its second meeting on Friday.
President Recep Tayyip Erdoğan, speaking at the opening of the Parliament on Thursday, said the government was resolving the issue "swiftly."
"We are resolving this issue swiftly within the framework of capital market rules, upholding fairness and justice, and ensuring that no one is deprived of their rights," he said.
"God willing, we will not allow this issue to turn into a threat to our economic security and social peace," he added.
Earlier this week, he said that the Turkish capital market "is resilient and has strong foundations."
