Minister of Treasury and Finance Mehmet Şimşek has made a new statement regarding the crisis involving certain funds in the capital markets. Şimşek stated that efforts regarding the problematic funds are continuing through coordination between institutions and that the necessary steps are being taken to ensure payments can be made to investors.
In a statement on his social media account, Şimşek expressed that the Ministry of Justice is continuing its work to protect the rights of investors and to ensure that the legal process is carried out against those held responsible.
In his statement, Şimşek included the following: "Our institutions are meticulously continuing their work regarding the problematic funds in coordination. The necessary steps are being taken to ensure that payments can be made to investors as soon as possible and at the highest level."
Following the problems that emerged in the funds, a liquidation and investigation process had been initiated. The Financial Stability Committee had previously announced that the problem was concentrated in specific funds, and a "Fund Coordination Board" was established on September 29 under the chairmanship of the Vice President. The State Supervisory Council had also launched an investigation into fund transactions.
In his statement, Şimşek argued that the impact of the developments on the financial system and the real economy would remain limited. The Minister used the following expressions: "The macroeconomic foundations we have strengthened and the steps taken will ensure that the effects of the developments on the financial system and the real economy remain limited."
Şimşek's statement is as follows:
"Our institutions are meticulously continuing their work regarding the problematic funds in coordination. The necessary steps are being taken to ensure that payments can be made to investors as soon as possible and at the highest level.
Our Ministry of Justice is resolutely carrying out the legal process to protect the rights of investors and to ensure that those responsible are held accountable.
Despite difficult global conditions and war, the resilience of our economy continues.
Despite high commodity prices, the decline in inflation continues. Our growth is approximately 2 times that of our trading partners, and the ratio of the current account deficit to national income is at a sustainable level of 2.6 percent. The ratio of gross external financing need, which has a long-term average of 20 percent, to GDP is at the 16 percent level, and the ratio of gross external debt to national income is 32 percent, well below the long-term average of 44.5 percent.
The ratio of the budget deficit to national income is approximately 3 percent, which is half the average of developing countries, and the ratio of public debt to GDP is at 22 percent, which is one-third the level of developing countries.
The macroeconomic foundations we have strengthened and the steps taken will ensure that the effects of the developments on the financial system and the real economy remain limited. With the measures we have taken, our capital markets will attain a stronger, healthier, and more resilient structure."
News Source: 12punto
