Turkey's fund crisis so far: 130 billion lira paid back, 444 suspects

The fund crisis that shook Borsa Istanbul in September is still dominating the agenda. New payouts, arrests and political fallout keep piling up, so here is where things stand.

1. It started with a 3,000% jump

On 28 August, it emerged that the prices of funds tied to certain companies had risen more than 3,000% in eight months. The jump came through cross trades in low-volume shares. The SPK (Turkey's Capital Markets Board) responded with caps: 5% per stock outside the BIST 30 index and 20% in total.

2. Then the panic hit

On 15 September, Pusula Portföy said it had defaulted on redemptions and payments. Funds rushed to dump shares, investors panicked and Borsa Istanbul saw sharp sell-offs.

3. 131 funds were put under quarantine

On 17 September, the SPK decided to liquidate 131 funds linked to Pusula, Tera and affiliated firms. They covered more than 455,000 investors. On 20 September, the liquidation window was stretched from three to six months to limit losses.

4. Arrests and seized assets

Some fund managers were arrested and 51 people were banned from leaving the country. Two private jets and a yacht, reportedly worth about 1.8 billion lira, were seized. Trading volumes on the exchange fell by up to 30%.

5. The political fallout

On 26 September, Fatma Betül Sayan Kaya, a deputy chair of the ruling AKP and former family minister, resigned. She and her husband were alleged to have made 2.17 billion lira by selling shares before the collapse. They denied wrongdoing, yet returned about 1.86 billion lira and had their assets frozen. On 8 October, parliament rejected the opposition's call for an inquiry with AKP and MHP votes.

6. Suspicious exits worth 187.6 billion lira

On 6 October, Justice Minister Akın Gürlek said 214 people and companies had pulled money out of the funds just before the crisis, on 13–16 September. Their gains were put at 187.6 billion lira. The list went to the TMSF (Turkey's savings deposit insurance fund), which began recovering the money for victims.

7. The investigation keeps growing

As of 6 November there are 444 suspects, 113 of them in jail. At least 186 face judicial control measures. Gürlek said a "comprehensive criminal structure" had been identified.

8. How much has been paid back?

Vice President Cevdet Yılmaz said 420,000 investors have received a total of 130 billion lira. Three companies remain in extraordinary liquidation: Tera, Pusula and Atlas. A new payment is due on 13 November, going from the smallest to the largest accounts.

The money is flowing back, but the questions about who is responsible are far from settled.