Turkey Forms Council to Oversee Investment Fund Liquidations

Turkey has established a fund coordination council chaired by its vice president to supervise the swift liquidation of investment funds, the presidency said, following a crisis that has shaken confidence in the country's capital markets.

The decision came after a meeting of economy officials with President Tayyip Erdogan, at which the Capital Markets Board presented a roadmap for returning money to investors. The plan is based on the asset and liquidity position of the funds now being wound up.

Officials also discussed further administrative and legal steps aimed at tightening oversight of capital markets and preventing a repeat of the episode.

Authorities have separately begun an audit of recent investment fund transactions, the presidency said.

The turmoil began when suspected price manipulation in a group of thinly traded stocks led to steep losses and a wave of redemption demands at investment funds. Authorities ordered more than 100 Turkish funds to be liquidated this month. Those funds hold stakes belonging to close to half a million investors and are worth about $20 billion.