Fund Crisis Process and Investors' Money Recovery Method Explained

While the fund investigation on Türkiye's agenda deepens, new developments continue to occur regarding the investigation. On the other hand, it is a matter of curiosity how citizens who invested in the funds will get their money back.

So, how will investors get their money back in a fund crisis? How will the process work? Economist Muhammet Bayram talked about this in the CNN Turk live broadcast.

Here are the highlights from Bayram's statements;

100 LIRA OR 10 MILLION?

There are people who deposit their money into the fund. You invested 100 liras, it turned into 10 million. Now, will you get back 100 liras or your principal or 10 million liras? The principal. I understand this from Mr. Mehmet Şimşek's words, "We protect the legitimate rights of investors."

WILL IT BE PAID WITH CITIZENS' TAXES?

It is said on social media that 'will these be paid for with my money and my taxes?' It is said. No.

WILL BE DETERMINED INDIVIDUALLY

These records are kept electronically in the Central Registry Agency. Whose money is in which fund? Who has shares in TERA, the match, the number of people will be revealed. When TERA is liquidated, the liquidation balance will emerge. For example, 10 units. It will be determined whether 10 units will be distributed to 40 people or 50 people.

HOW WILL THE PROCESS WORK?

What is meant by the financial assets held by the fund? Shares owned by 18 funds. This transaction took place on September 15, the value of one of them was 300 lira, but now it is 5 lira. Now, financial assets, namely shares, will be converted into cash, taking into account market conditions, value in the stock market and liquidity. Will the value on September 15 be taken into account or the value after September 15? Its value after September 15 will be taken into account. Their principal sums were not disclosed and I do not know them either.

PERIOD HAS BEEN EXTENDED

What did TERA do here? He focused on some real estate. A parking lot in Nişantaşı. That's why it was 3 months long, why was the calendar determined by CMB extended to 6 months? So that market conditions do not go cheap.

"IT WILL NOT BE FINANCED BY CITIZENS' TAXES"

All assets are paid off and debts are paid. This collects state taxes before actual shares owed to shareholders. It's always like this. The remaining money will be taxed after that. In other words, these will not be financed with the taxes paid by citizens who do not deposit money into this fund.

HERE IS THAT PROCESS, STEP BY STEP

INVESTOR DETECTION

The Central Registry Agency and banks will match investors' shares and accounts.

FUND ASSETS WILL BE SOLD

The financial assets held by the fund will be converted into cash, taking into account market conditions and liquidity.

DEBTS WILL BE DISTRIBUTED

Debts, taxes and other liabilities of the fund, if any, will be calculated.

NET LIQUIDATION VALUE WILL BE CALCULATED

After all transactions, the amount to be paid to the investor will be revealed.

MONEY WILL BE PAID TO THE INVESTOR

The cash obtained will be transferred to the individual custody account according to the investor's share in the fund.