The Wall Street Journal analyzed the turmoil that began when certain funds failed to fulfill redemption requests and spread to Borsa Istanbul (BIST); the Capital Markets Board (SPK) initiated the liquidation of 131 funds belonging to 7 portfolio management companies.
The WSJ analysis reported that hundreds of thousands of small investors seeking to protect against high inflation turned to funds and that some funds concentrated in low-liquidity stocks. Treasury and Finance Minister Mehmet Şimşek said the credit and liquidity problems in a limited number of funds do not pose systemic risk. The aim is to complete the liquidations within 3 months.
