DEVA Party Chairman Ali Babacan criticized the government over the "fund" crisis in the capital markets during a press conference held at his party's İzmir Provincial Headquarters. Babacan stated that if the process is not clarified transparently and those responsible are not punished, investor confidence in Turkey will suffer a heavy blow.
Stating that he does not see the events as a "natural development," Babacan argued that the problem in the markets stems more from the human factor than the system itself. Babacan remarked, "Turkey has faced the largest market fraud in the history of the Republic."
According to Babacan, an incident of this scale could only continue for a long time with support provided from within the political power and bureaucracy. Pointing to the Capital Markets Law, the Capital Markets Board, and the infrastructure of Borsa İstanbul, Babacan expressed that even the strongest technical and legal systems can become dysfunctional in the face of incompetent staff.
CALL FOR A PARLIAMENTARY COMMISSION
Babacan stated that the crisis is not limited only to the relevant funds but has created a general distrust in the market. Stating that the portion related to the funds is on the order of 800 billion TL, or approximately 16 billion dollars, Babacan claimed that the loss of value in capital markets since September has exceeded 150 billion dollars.
Drawing attention to the decline in the number of individual investors, Babacan said that the number of investors, which was approximately 7 million at the beginning of September, may have fallen to 6.5 million. Reminding that there are 27 million households in Turkey, Babacan emphasized that this development directly affects millions of households.
Babacan reiterated his call for the establishment of a commission in the Grand National Assembly of Turkey to investigate the developments in the capital markets. Demanding that the relevant list be disclosed to the public, Babacan said, "If you do not disclose this list, if you do not establish a commission in the Grand National Assembly of Turkey, and if you continue to tend to cover this up, the deterioration in these markets will not stop."
In the continuation of his remarks, the DEVA Party leader issued the following warning regarding investor confidence: "If those who steal get away with it in this incident, if those who defraud get away with it, there will never be investment in Turkey's capital markets from now on; no one will come. Our own people will not invest either. International investors will not invest either."
At the meeting, Babacan also touched upon the 2027 budget. Criticizing the size of the resources allocated for interest payments, Babacan stated that approximately 4 trillion TL has been allocated for interest in the budget, arguing that the root cause of the high interest burden is "poor management" and a lack of confidence.
News Source: 12punto
