UPDATE 1 — Turkey says $18.3 bln fund liquidations will not pressure stock market

(Updates throughout) ISTANBUL, Sept 18 (Reuters) — Turkey's liquidation of investment funds worth $18.3 billion will not put pressure on Borsa Istanbul, as regulatory changes should prevent any contagion risk, Finance Minister Mehmet Simsek said, adding authorities would monitor the market closely. Turkey's Capital Markets Board on Friday mandated Isbank and Ziraat Bank to oversee the liquidation of 131 investment funds managed by seven portfolio companies. "There is no widespread systemic risk. There is no structural problem in the stock market or the fund market. 90% of the fund market continued to function healthily," Simsek said. In an interview with broadcaster NTV, Simsek said that authorities will monitor markets, although he said regulatory changes should have reduced the risk of volatility recurring. Turkish authorities stepped in to try to ensure market stability after a fund liquidity crunch triggered steep falls in Turkey's main stock index this week. The authorities' actions helped the index recoup some of its losses on Thursday, but it is still down around 8% since last Friday's close. The BIST-100 was down around 1.5% at 0754 GMT, after closing 2.95% higher yesterday