Turkey Begins Payouts for $20B Hedge Fund Crisis

Key Facts

1Turkey's Capital Markets Board approved interim payments of up to 1 million lira per eligible investor in distressed funds.

2The compensation plan covers funds managed by Tera, Pusula, Atlas, and Hedef.

3Finance Minister Mehmet Simsek insisted that the fund crisis does not represent a systemic problem.

Turkey's Capital Markets Board approved interim payments of up to 1 million lira per eligible investor in distressed funds, according to Bloomberg. The compensation plan covers funds managed by Tera, Pusula, Atlas, and Hedef, following a liquidity crisis that led to the liquidation of 131 funds and affected nearly 456,000 retail investors after asset managers halted redemptions.

Finance Minister Mehmet Simsek insisted that the fund crisis does not represent a systemic problem for the Turkish economy, despite the liquidation of approximately $20 billion in local funds. The crisis previously dragged the BIST 100 index down 6% and pushed credit default swaps (CDS) as much as 15 basis points wider during the peak of the liquidity squeeze. No updated numeric price levels were available for the primary instruments as of October 3, 2026.