A former Turkish minister and deputy secretary general of the ruling Justice and Development Party announced her resignation late Saturday amid a massive investment fund crisis. The crisis has sparked fears of a liquidity crisis in Turkey. According to reports, the former minister, Betul Sayan Kaya, submitted her resignation due to the ongoing scandal.
The investment fund crisis began earlier this month when the Turkish Capital Markets Board changed its guidelines for investment funds. The new guidelines required funds to diversify their assets and no longer invest heavily in a single stock. As a result, funds began selling stocks, causing panic among investors who rushed to liquidate their investments.
The crisis deepened when several companies admitted they were unable to meet investor demands for cash withdrawals. This led to a sharp decline in the Istanbul stock exchange. In response, the Capital Markets Board decided to liquidate 131 investment funds, affecting over 455,000 investors. The funds had a combined asset value of around $17 billion.
Kaya's resignation comes amid allegations that she and her husband sold stocks before the scandal became public. The opposition party has called for clarification on reports that Kaya invested 63 million lira ($1.3 million) in stocks and made a profit of around 1.3 billion lira. Kaya stated that she resigned to ensure that her position did not become a topic of public debate and to allow for an independent investigation.
The ruling party has vowed to take action against those involved in the scandal. Party spokesperson Omar Celik stated that the party would "unwaveringly" combat all forms of irregularities. Turkish President Recep Tayyip Erdogan has downplayed the risks to the Turkish economy, stating that there is no danger to the financial system or the economy.
The scandal has led to the detention of 51 people, including a former deputy governor of the Central Bank of Turkey. The investigation is ongoing, and authorities have promised to hold those responsible accountable. Erdogan emphasized that all necessary measures are being taken within the framework of capital market regulations and the law.
The crisis has sparked concerns about the potential impact on the Turkish economy. However, Erdogan and Finance Minister Mehmet Simsek have sought to reassure investors that the situation is under control. Simsek has denied rumors that he plans to resign. The government has promised to take all necessary steps to mitigate the effects of the crisis and restore stability to the financial markets.
Key points
- Turkish former minister Betul Sayan Kaya resigns amid investment fund crisis
- Crisis sparks fears of liquidity crisis in Turkey
- Authorities vow to take action against those involved in the scandal
