Interim payments of up to 1 million Turkish Liras to investors in funds undergoing extraordinary liquidation will begin on Oct. 30 through İş Bankası and Ziraat Bankası, Vice President Cevdet Yılmaz said.
Addressing parliament’s Planning and Budget Commission on Oct. 27, Yılmaz said payments would start with the smallest amounts.
He expected this round of payments to be completed around mid-November.
“I can say that a substantial amount will be paid on Friday,” he said.
The Capital Markets Board (SPK) has given money market funds priority under rules issued after the liquidation law was published in the Official Gazette on Oct. 27.
Interim payments will be calculated separately for each fund and cannot exceed either 1 million liras or the investor’s net investment, calculated without inflation adjustment.
Where cash is insufficient, payments are also limited by the value of investors’ holdings: Sept. 16 values apply to money market funds, while other funds use values from the day before the payment calculation.
The SPK can approve a payment order or a minimum payout to reach more investors.
The SPK assigned the liquidation of Tera Portföy’s affected funds to İş Bankası and those of Pusula Portföy and Atlas Portföy to Ziraat Bankası.
Yılmaz said Atlas’s eligibility for ordinary liquidation was still being assessed.
Payments will draw on remaining fund assets, voluntary returns and recovered gains and proceeds from assets placed under judicial restrictions, Yılmaz said.
The new law gives the Savings Deposit Insurance Fund (TMSF) powers to sell assets more quickly.
Under ordinary liquidation procedures, 68 billion liras had already been paid to 71,899 accounts across 93 funds by Oct. 23, Yılmaz said.
He put the remaining net investment under extraordinary liquidation at 125 billion liras.
Interim payments will be deducted from final entitlements, with fund units surrendered only at the final payment stage.
People and institutions identified by the SPK as having participated in market abuse, insider trading or manipulation involving the affected funds will be excluded from payments.
