Liberal Party Reacts to MSCI Decision: Türkiye’s Financial Credibility Under Pressure

The Liberal Party stated that MSCI had announced a decision to freeze its Türkiye indices due to serious concerns regarding coordinated transactions conducted through investment funds in Türkiye’s capital markets, the reliability of free-float ratios and shortcomings in market supervision. The party emphasized that the development posed significant risks to Türkiye’s credibility in international financial markets.

The statement highlighted that reliability had historically been one of Türkiye’s most important strengths in the financial sector. It noted that institutions such as the Central Bank of the Republic of Türkiye, Borsa İstanbul, the Capital Markets Board (SPK) and the Banking Regulation and Supervision Agency (BDDK) had previously been trusted within both national and international financial systems.

The Liberal Party argued that a lack of meritocracy, corruption and violations of the rule of law had also spread to financial institutions. It further claimed that the failure of these institutions to properly fulfill their responsibilities had left Türkiye facing warnings from international oversight organizations and the risk of exclusion from international markets.

Liberal Party Warns of Risks to Capital Markets

The party listed the potential consequences of these developments for the Turkish economy as follows:

• A decline in foreign capital inflows.
• Reduced liquidity in the stock market.
• Falling share valuations.
• An increase in Türkiye’s risk premium.
• Capital outflows from investment funds.
• The risk of losing emerging market status in June 2027.

The Liberal Party stressed that economic institutions must fully and effectively fulfill their responsibilities to prevent these risks from materializing. The statement also called on the government to investigate allegations surrounding the investment fund scandal, take the necessary measures and develop solutions.