YENİ Party Istanbul MP Gökan Zeybek warned about the real sector, stating that the losses experienced in investment funds might not remain limited to financial markets. In a statement on his social media account, Zeybek expressed that problems in companies' access to financing, debt repayments, and cash flow are beginning to become visible.
Noting that the BIST 100 index lost a total of 24.94 percent in value during September and October, Zeybek assessed that "the fund fraud could leave behind massive destruction for both the stock market and the real sector."
According to the data shared by Zeybek, the total portfolio value of investment funds declined by 1 trillion 740 billion liras in September, while the portfolio value of money market funds fell by 570 billion liras. In the same month, the portfolio value of the industrial sector in the stock market decreased by 23.24 percent, and the technology sector's portfolio value dropped by 27.78 percent.
Stating that the BIST 100 index recorded a decline of 16.65 percent in September and 9.94 percent in October, Zeybek reported that the total two-month loss reached 24.94 percent. Zeybek also said that payment difficulties are being experienced in private sector bonds and that net sales of these bonds by foreign investors have exceeded 1.3 billion dollars since September 15.
Drawing attention to the table regarding the real sector, Zeybek noted that 449 of the 2,212 companies that ceased operations in September were producing in the manufacturing sector. He reported that the number of unemployed people increased by 198 thousand during the same period, while the number of employed people decreased by 49 thousand compared to the previous month.
If financing contracts, companies will struggle to roll over their debts. If companies cannot make payments, suppliers will be squeezed. If the supply chain is disrupted, production, factories, and employment will come under pressure. At the end of this chain lies the livelihood of thousands of workers.
At the end of his statement, Zeybek issued a call: "At this rate, the bill for this fund swindling will be footed by factories, businesses, and millions of laborers who earn their living by the sweat of their brow. Take precautions before it is too late."
News Source: 12punto
