Reshuffle possible in Turkey's government over stock market crisis
A reshuffle is possible in the Turkish cabinet of ministers in connection with the crisis on the republic's stock market in September, the pro-government newspaper Hürriyet does not rule out.
According to the publication, the crisis provoked a negative reaction in the ruling Justice and Development Party (AKP), which is headed by President Recep Tayyip Erdoğan. "The party demands that those responsible be found and held accountable. The president will himself choose the time and determine the course of action. However, calls within the AKP for personnel changes in the bureaucratic apparatus and the cabinet of ministers have intensified," the publication writes.
Hürriyet also reports that on October 6 the ruling Turkish party will submit to parliament a proposal to create a special commission to investigate the crisis. Turkish lawmakers resume work after the summer recess on October 1.
Amid the investigation into manipulations on the exchange, by decision of the financial regulator — the Capital Markets Board — five investment funds that the authorities consider the main culprits of the crisis have been placed under the compulsory external management of Turkey's Savings Deposit Insurance Fund. Among them is the Tera holding. The head of Turkey's Ministry of Justice, Akın Gürlek, earlier stated that all assets illegally obtained during the September turmoil would be confiscated in favor of the state.
It was reported earlier that on September 16 there was a sharp drop in quotations on the Istanbul Stock Exchange. Trading was halted, and the authorities launched an investigation into the Tera holding and structures linked to it. According to the investigation, panic on the market was provoked artificially in connection with a liquidity crisis at several investment funds and management companies. The newspaper Nefes reported that the combined assets of the funds at the center of the financial pyramid scandal amount to about $18 billion. The authorities decided to liquidate 7 investment funds and more than 130 mutual funds.
The head of the Turkish Ministry of Justice reported that investigative actions have been carried out against 217 suspects, 56 people have been arrested, and judicial supervision rulings have been issued against 88 people. On Thursday morning, by court decision, two more figures in the case were arrested — heads of investment companies belonging to the Tera holding, the TRT Haber television channel reported.
Source: TASS
