Two weeks after a cluster of Istanbul asset managers stopped honoring redemptions, triggering a market-wide circuit breaker and the liquidation of 131 funds held by some 455,758 Turkish retail investors, Ankara has unveiled its plan to make everyone whole. Or at least, to make everyone a little bit less un-whole.
As Bloomberg reports, Turkey will start payments to investors caught in the fund crisis. The Capital Markets Board (SPK) approved interim payments of up to 1 million lira (about $20,400) per eligible investor in funds run by Tera, Pusula, Atlas and Hedef, calculated on each investor's "net investment" as determined by the Central Securities Depository (MKK). Below a million lira, you get your money back; above it, you get a million and a place in the queue. Money market funds get paid first, the rest in descending order of investor count, with A1 Capital, Bulls and Pardus funds slotted in afterward. The interim payments are advances against whatever the liquidation ultimately recovers, which is a polite way of saying nobody knows yet.
Emre Tezmen, chair of Tera Yatırım, was arrested early last Wednesday.Finance Minister Mehmet Simsek, meanwhile, insists that "READ MORE AT SOURCE »
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