Pusula Holding sets 10 billion lira aside as DASK must hold a third in Treasury paper
Pusula Holding's board approved buying up to 10 billion lira of additional Katılımevim shares on Borsa İstanbul. In the same week regulators ordered at least a third of the earthquake insurance pool's fund into finance ministry debt securities. The two moves tighten corporate buying and catastrophe-pool investment rules at once in Türkiye.
Economics & Markets··Evening
Pusula Holding sets a Katılımevim purchase ceiling
The holding company's board decided on Sunday to buy additional shares in its savings finance subsidiary Katılımevim on Borsa İstanbul, spending up to 10 billion lira under normal market conditions. Chairman Serdar Turhan said the group trusts the subsidiary's financial structure, its continued growth and its potential to create long-term value, and that its appetite for sound companies persists even while the group simplifies its structure and cuts risk. That simplification began about a month ago and aims to strengthen liquidity, keep risk under control and move resources towards long-term opportunities.[1]
At least a third of the DASK fund must sit in Treasury paper
Turkey's insurance and private pension regulator has amended the operating rules of the country's natural catastrophe insurance pool. Under the new rule at least a third of the pool's fund must be held in debt securities and lease certificates issued by the finance ministry and its asset leasing companies. The amendment caps exposure to any single issuer at 10 per cent of the fund, with paper from the ministry and its asset leasing companies excluded from that limit.[2]
Fund management and reporting rules were also tightened
The fund may be run by the technical operator or by state-owned portfolio management firms licensed by the Capital Markets Board, and the operator must report allocation and returns to the board every month. Where the fund exceeds twice the annual retention plus outstanding claims, credit and reinsurance obligations, the surplus may be placed in a portfolio with a maturity longer than one year. Purchases are disclosed as the rules require.[2], [1]
