Turkey’s $20B fund crisis: Who profited, and who will pay?
Opposition parties are demanding immediate government compensation for affected investors, who face up to a six-month wait as independent banks oversee the asset liquidations.
Turkey’s $20 billion investment fund scandal is drawing more figures from the ruling party into the fallout, with a senior official’s son briefly facing asset restrictions and a former economy minister disclosing that companies he co-owns have money trapped in an affected fund.
The developments are adding to questions over who profited and whether authorities acted quickly enough on warnings of market manipulation, as nearly half a million investors await the liquidation of funds holding their savings.
A senior Turkish financial executive, speaking to Al-Monitor on condition of anonymity, said he believes other political figures are likely to be involved and some of the lost funds were transferred elsewhere.
“We know very little about who sold these shares to these funds, and how they bought it from whom, and then who made money,” he said.
