The legislative proposal regulating interim payments to be made to investors affected by certain investment funds in the liquidation process will be discussed today in the TBMM Planning and Budget Committee. The proposal, submitted to the Parliament Speaker's Office on October 9, aims to provide a legal basis for the payment process in funds whose liquidation has been decided by the Capital Markets Board.
If the regulation is enacted, interim payments of up to 1 million liras can be made to investors based on their net investment amount. Vice President Cevdet Yılmaz announced that if the proposal passes through Parliament, payments could begin within the month of October.
WHO WILL BE ELIGIBLE FOR PAYMENTS?
The proposal envisions prioritizing small investors and money market funds. While it is stated that those who have already recovered their entire principal investment will not be able to benefit from this practice, investors who have a portion of their principal remaining in the fund will be able to receive payments within the scope of the determined conditions.
For investors whose claim exceeds 1 million liras, it is planned to make payments up to this amount in the first stage. It is stated that interim payments will be included in the netting account while final rights and obligations are being determined. It is intended to exclude individuals determined to have engaged in illegal transactions or obtained unfair gains from the scope of payment.
According to the information provided by Yılmaz, public resources will not be used for the payments. It is planned that the resources will be provided from assets that can be converted into cash in the liquidated funds, the return of unfair or exorbitant gains, and the evaluation of the assets of responsible persons or companies.
In the legislative proposal, it is also envisioned that additional powers will be granted to the Savings Deposit Insurance Fund (TMSF) specifically for the liquidation process. With these powers, it is aimed to evaluate the seized assets more quickly and use them in the financing of payments to be made to investors.
SEPARATE ACCOUNTS OPENED FOR 131 FUNDS
Within the scope of the process, 131 separate accounts were created for 131 funds. It was stated that a general account was also opened for revenues to be obtained from unfair gains and asset sales. Against the possibility that there may not be sufficient resources for payments of up to 1 million liras in some funds, options such as transferring resources collected in other accounts to the relevant funds or distributing the existing resource starting from the smallest creditor are being evaluated.
According to the statement of the Fund Coordination Board, a total of 6.4 billion liras has been paid to 43 thousand 643 investors in funds managed by A1, Bulls, and Pardus portfolio management companies through Ziraat Bank. It is aimed to complete the 34.1 billion lira liquidation process for the remaining 49 funds of these three companies by the weekend.
Thus, it is planned to complete the 40.5 billion lira in-kind and cash liquidation for 45 thousand 745 people in a total of 66 investment funds managed by A1, Bulls, and Pardus. Following the entry into force of the law, it is aimed to rapidly conclude the interim payments for the other 65 funds in the liquidation process.
Yılmaz reported that measures were imposed on a total of seven portfolio management companies and the 131 funds under them in the process regarding the problematic funds. It was stated that these funds correspond to 4.6 percent of the total number of funds and 7.7 percent of the total fund portfolio; and that the number of investors negatively affected by the process exceeded 455 thousand.
The administrative investigation regarding the fund probe is also ongoing. It was stated that the State Audit Board is conducting its work covering the relevant institutions with auditors and inspectors; and that according to the report to be prepared, new regulations may come to the Parliament's agenda if needed. It was also announced that the Central Securities Depository (MKK), Takasbank, Ziraat Bank, and İş Bank have completed their technical preparations.
News Source: 12punto
