Turkey's Capital Markets Board (CMB) is preparing to liquidate a number of investment funds, including those managed by Tera Portfoy, a move that follows recent defaults on redemption payments. This development comes after Tera Portfoy Yonetimi AS announced on September 16, 2026, that two of its funds, the Tera Portfoy Money Market Fund (TP2) and the Tera Portfoy Equity Intensive Fund (THF), with combined assets of 366 billion liras (approximately $7.5 billion), failed to meet redemption requests. This made Tera the second Turkish asset manager to report fund defaults this week, further exacerbating concerns about liquidity within the country's fund industry.
Separately, the CMB has already approved the liquidation of six funds managed by Golden Global Portfoy. This decision was a direct consequence of US sanctions imposed earlier in September on companies linked to the Golden Global group due to alleged Iran-related activities. The affected Golden Global funds include short-term lease certificates, gold and money market participation funds, and three venture capital investment funds.
The broader financial market in Turkey has reacted negatively to these events. On September 16, 2026, the Borsa Istanbul 100 Index fell as much as 5.7%, extending its two-day decline to 6.9%. While the index later trimmed some of its losses to trade 3% lower, this marked the largest such drop since March 2025. The Turkish Financial Stability Committee, however, has characterized the current market issues as temporary and concentrated in specific segments, stating that they do not pose a fundamental or structural risk to the Istanbul Stock Exchange or Turkey's capital market operations.
In response to the market turmoil, the Central Bank of the Republic of Turkey (CBRT) announced on September 17, 2026, a series of liquidity management measures. These include increasing the amount of funding via one-week repo auctions as needed, revising banks' borrowing limits at the CBRT's Interbank Money Market, and reducing collateral haircuts applicable at CBRT's markets. The CBRT affirmed its commitment to closely monitoring liquidity conditions and taking additional measures as necessary to stabilize the financial system.
