Türkiye acts to speed payments for troubled fund investors: Minister

Treasury and Finance Minister Mehmet Şimşek said on Thursday that Türkiye is taking steps to ensure investors in troubled funds receive payments as quickly as possible and at the highest possible level, stressing that relevant institutions are coordinating closely to resolve the issue.

Legal process and institutional coordination

Writing on the Turkish social media platform NSosyal, Şimşek stated that the Justice Ministry is pursuing legal avenues to safeguard investor rights and ensure accountability for those responsible. He added that stronger macroeconomic fundamentals and the measures being implemented would limit the impact of recent developments on both the financial system and the real economy, giving Türkiye’s capital markets a healthier and more resilient structure.

Economic resilience amid global challenges

Şimşek emphasized that Türkiye remains resilient despite challenging global conditions and ongoing wars in the region, noting that inflation continues to decline even as commodity prices remain elevated and international markets face uncertainty. Economic growth stands at approximately twice the rate of the country’s trading partners, while the current account deficit remains sustainable at 2.6% of gross domestic product, according to the minister.

Debt and deficit indicators

Gross external financing needs have fallen to 16% of GDP, below the long-term average of 20%, while the gross external debt-to-GDP ratio stands at 32% — substantially lower than its historical average of 44.5%, Şimşek stated. The budget deficit hovers around 3% of GDP, roughly half the average for developing countries, and public debt stands at 22% of GDP, about one-third of the typical level in comparable emerging economies, the minister noted.