First Partial Payments to Liquidation Fund Investors in Turkey Begin Today

The first partial payments to unit holders of investment funds subject to exceptional liquidation in Turkey commenced Friday, October 30, in accordance with Law No. 7596 issued by the Grand National Assembly and procedures established by the Capital Markets Board (SPK).

Payments are executed through Işbank and Ziraat Bank and cover investment funds established by Tera Portföy Yönetimi AŞ, Pusula Portföy Yönetimi AŞ, and Atlas Portföy Yönetimi AŞ, which were included in liquidation under SPK decisions issued on September 17, 2024. Money market funds are prioritized, and payments are expected to be completed up to a ceiling of one million lira per investor by mid-November.

The partial payment is calculated as the minimum of: the net investment amount calculated by the Central Depository Agency (MKK) without index adjustments, the one-million-lira ceiling, and the unit market value calculated at the end of the day preceding the liquidation decision for money market funds, or at the end of the day preceding the partial payment calculation date for other funds. Payments will not necessarily be identical between investors. Should available liquidity prove insufficient, a waiting list may be created or a minimum payment threshold set after obtaining SPK approval.

Turkish Vice President Cevdet Yilmaz reported to the Grand National Assembly that payments under ordinary liquidation have been largely completed, with 68 billion lira disbursed to 71,899 accounts across 93 funds by October 23. He estimated the net amounts remaining in exceptional liquidation at 125 billion lira, emphasizing that available resources — including cash in the funds, qualified shares, and other assets, as well as amounts recovered from beneficiaries of illicit gains — are sufficient to cover payments up to the one-million-lira threshold.