Türkiye taking steps to speed payments to investors in troubled funds: Finance minister

Türkiye is taking steps to ensure investors in troubled funds receive payments as quickly as possible and at the highest possible level, Treasury and Finance Minister Mehmet Simsek said Thursday.

Simsek said on Turkish social media platform NSosyal that institutions were continuing work on the affected funds in close coordination.

The Justice Ministry is also pursuing the legal process to protect investors’ rights and hold those responsible accountable, he added.

Simsek said stronger macroeconomic fundamentals and the measures being taken would limit the impact of recent developments on the financial system and the real economy.

The measures would also give Türkiye’s capital markets a stronger, healthier and more resilient structure, he said.

Turning to the broader economy, Simsek said Türkiye remained resilient despite challenging global conditions and wars, with inflation continuing to decline despite high commodity prices.

Economic growth was approximately twice that of Türkiye’s trading partners, while the current account deficit stood at a sustainable 2.6% of gross domestic product, he said.

Gross external financing needs amounted to 16% of GDP, below the long-term average of 20%, according to the minister.

The gross external debt-to-GDP ratio stood at 32%, substantially below its long-term average of 44.5%.

Simsek noted that the budget deficit was around 3% of GDP, roughly half the average for developing countries, while public debt stood at 22% of GDP, about one-third of the average level in developing countries.