Turkey's Finance Minister Mehmet Simsek will hold a series of critical meetings on Thursday and Friday to discuss the liquidation process of 131 investment funds, which are valued at around $18 billion. These meetings will involve various relevant institutions and organizations, aiming to develop technical solutions for the liquidation and payment procedures. Simsek is returning from the UN General Assembly meetings in the US to address this urgent financial crisis.
The primary objectives of these discussions are to safeguard the rights and interests of investors and to ensure that the liquidation and payment processes are fair, healthy, and completed as quickly as possible. The meetings will also explore steps to support the healthy functioning of markets and financial stability, within the scope of the duties and authorities of the involved institutions. Inter-institutional coordination and a roadmap for implementation will also be evaluated at a technical level.
This crisis began on September 15, 2026, when Pusula Portfoy announced it defaulted on fund participation share payments. Panic escalated after Tera Group, which was in the process of acquiring Pusula, stated that the acquisition was not complete. The Capital Markets Board (SPK) intervened on September 17, 2026, ordering the liquidation of 131 investment funds belonging to seven portfolio management companies, including Tera, Pusula, Hedef, and A1 Capital, impacting over 455,000 investors. Initially, a three-month timeline was set for liquidation, later extended to six months, with Is Bankasi and Ziraat Bankasi appointed to manage the process.
The crisis has also led to judicial proceedings, with the Istanbul Chief Public Prosecutor's Office initiating an investigation. Arrests were made on September 22-23, 2026, including Tera Yatirim Holding Chairman Emre Tezmen and Pusula Holding Chairman Serdar Turhan, along with academics Emre Alkin and Kerem Alkin. The number of arrests is increasing, and over 48 senior executives have been subjected to travel bans. Turkish officials are considering pooling assets from these frozen funds to repay investors.
