Erdoğan Vows Accountability in Turkey's $18 Billion Market Scandal as 450,000 Investors Face Losses
Updated
Updated · Financial Times · Sep 28
Erdoğan Vows Accountability in Turkey's $18 Billion Market Scandal as 450,000 Investors Face Losses
3 articles · Updated · Financial Times · Sep 28
Summary
Erdoğan said Turkey’s economy remains “robust” and pledged to punish anyone behind manipulative schemes after an alleged $18 billion market scandal spread through the country’s funds industry.
Tera Portföy’s failure to meet redemption requests triggered the crisis, which rippled to other asset managers, sparked a run on funds and forced regulators to appoint İşbank and Ziraat Bank to liquidate 131 affected funds.
450,000 investors have been hit, and the unwind could take up to six months, raising the political stakes for Erdoğan as households already strained by high inflation and falling real wages face potential losses.
Fatma Betül Sayan Kaya, a deputy chair of Erdoğan’s AK party, resigned on Sunday after opposition allegations that she and her husband made millions trading shares tied to the scandal.
Prosecutors also sought the arrest of İskender Balcı—linked by family to senior financial officials—underscoring how the affair has widened from a market sell-off into a test of government credibility.