Türkiye says no structural risk to stock market, pledges swift action

Türkiye's Financial Stability Committee said Thursday that there is no fundamental or structural risk to the functioning of Borsa Istanbul or the country's capital markets, pledging swift measures to ease liquidity pressures and prevent contagion.

The committee, chaired by Treasury and Finance Minister Mehmet Simsek, met to discuss recent developments in the capital markets.

It concluded that the recent market volatility stemmed from credit and liquidity problems at certain funds managed by a limited number of portfolio management companies, according to an official statement.

"There is no fundamental or structural risk concerning the functioning of Borsa Istanbul and our capital markets," the committee said.

"The problem is concentrated in a specific segment of the fund market and is temporary and manageable," it added.

The committee evaluated measures that could be taken to maintain the healthy functioning of markets and safeguard macrofinancial stability.

"All necessary measures within this scope will be swiftly implemented by our relevant institutions," it said.

The measures will primarily aim to alleviate liquidity constraints and prevent the problems from spreading to other parts of the financial system.

The committee also said regulatory and supervisory authorities would continue to exercise their powers "with determination" against those found to have engaged in market-disruptive activities.

It urged the public to rely solely on statements issued by official sources during the process.

"The committee will closely monitor developments and regularly inform the public," the statement added.