ECONOMICS > Ankara watches 3 billion lira assistance to Turkish Cyprus

ANKARA - Hürriyet Daily News

A recent posting on the Turkish Official Gazette about a 3 billion Turkish Lira grant to Turkish Cyprus allocates a close watch on spending. It also shows the northern side of the island needs more to stand alone

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The pipes are to be burried under water for the ‘Turkish Cyprus Water Supply Project’ that foresees 75 million cubic meters of water transferred from Turkey to Turkish Cyprus. AA photo

The pipes are to be burried under water for the ‘Turkish Cyprus Water Supply Project’ that foresees 75 million cubic meters of water transferred from Turkey to Turkish Cyprus. AA photo

Protocol surrounding Turkey’s 3 billion Turkish Lira grant to Turkish Cyprus has revealed that Ankara initiates terms for considerable support, which include a close watch on spending. 

The three year economic cooperation program scheduled to last until the end of 2015 foresees to cut the current budget gap of the Turkish side of the island to 315 million liras.

The grant will also be handed over to the island’s Turkish side in three years, according to the agreement published on the Turkish Ofiicial Gazzette yesterday. The document was signed by Turkish Deputy Prime Minister Beşir Atalay, who is in charge of ties with Turkish Cyprus, and Turkish Cypriot Prime Minister İrsen Küçük. 

The dues will be determined in Turkey’s annual budget laws. 

Turkey may also add 300 million liras in loans to support the budget and reshape public banks in Turkish Cyprus. 

Turkey has also promised to send technicians and public employees to lend physical support to the island.

A Turkish Cypriot mission will prepare monthly reports and detailed studies quarterly, which will be submitted to a Turkish mission. The grants will be given to the Turkish Cyprus side after approval is granted by the Turkish mission and Atalay. 

Besides aiding the Turkish Cypriot economy, the implementation of the program will also aim to evaluate things in outlook meetings held every six months. 

Turkey will also provide support to particular sectors on the island, mainly tourism, via its Development Bank and some other lenders, which were not named in the document.

Tourism revenues
Turkish Cyprus’ tourism revenues make up a little less than 5 percent of its economy. 
The deal shows that Turkey will closely watch its grant to Turkish Cyprus, which started to grow moderately in 2010 after two years of recession. 

Greek Cyprus, the other half of the island, does not enjoy such a backup as its traditional backer, Greece, is itself struggling with an economic crisis. 

Greek Cyprus’ finance minister earlier this week said the government’s estimates of how much the country’s ailing banks need in rescue money still “differ greatly” from those of international 

Vassos Shiarly said Feb. 4 that auditors PIMCO and Deloitte recommend the banks receive enough money to be able to survive a ‘worst-case’ economic crash scenario.

Greek Cyprus deal rush

Nicosia - Agence France-Presse

Greek Cyprus signed an agreement yesterday with French energy major Total to conduct exploratory drilling for gas and oil in two blocks off its southern shore

The deal comes as Greek Cyprus aspires to become a regional energy hub with the prospect of oil as well as natural gas being tapped beneath the sea bed.

With the act the government has completed one of the most crucial aims in its energy policy, that of successfully conducting a second round of licensing, Commerce Minister Neoclis Sylikiotis told reporters,.Turkey has protested strongly against Nicosia’s energy search, branding it illegal and beginning its own exploratory drilling off the breakaway north of the island.


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Notice on comments

john albay

2/11/2013 6:03:37 PM

@peter pan.. What rubbish and lies you post here it is unbelievable!! There is no such thing as EU land and the Turkish Republich of Northern Cyprus is 100% sure not in the EU! We are a seperate state and have nothing,repeat nothing to do with the puppet statelet of greek occupied cyprus. You greek cypriots and greeks started this mess by murderering us Turkish cypriots,lost out to the Turkish military who interviened to save us and you lied to the world about the events in cypus.

Chris Green

2/10/2013 2:50:27 PM

Mr Panayiotou: There is no such thing as EU Territory; the EU is a collection of sovereign states although there are many who dream of a federation of states such as the USA. This is not the reality however and is unlikely to become so. Turkey has been told by whom, precisely? I am in touch with both Turkey and the TRNC on a daily basis and certainly in the latter case, the expectancy of annexation is highly anticipated! Whinge all you like, but Greece are irrelevant in the whole process!

Peter Panayiotou

2/9/2013 5:05:50 AM

Mr Green you really must start living in the real world. Turkey has already been told she cannot annex northern Cyprus under any circumstances. Cyprus is EU territory now and its foreign policy has rotated towards the USA and Israel while managing to keep the Russians on side. Turkey is not as powerful as u think. It had to borrow Patriots and it took no action when its warplane was shut down.

john albay

2/8/2013 5:22:53 PM

@peter kypros- I live in the free part of cyprus in the Turkish Republic of Northern cyprus. The Turkish army pay my retirment pension and we have great health care in our country the TRNC! As for the vote it was a UN vote not a Turkey or greek vote and you all voted NO and we voted yes!! You lost your chance of reunification and we Turkish cypriots LOVE Turkey and thanks to Turkey we are free from the likes of markarios sampson EOKA B and the evil greek cypriot plan for ENOSIS!!

Chris Green

2/8/2013 1:13:28 PM

Kypros & others can bang on all he likes but he knows deep down that the reality is that in the relatively near future, Turkish Cyprus will be a legal entity of the Republic of Turkey. The umbilical connection will be made in the physical sense around March 2014 whilst the subliminal connection has always been there and certainly so since November 15th 1983 when the Declaration of the Republic was made in Famagusta by founding president RR Denkas (obiit). Well said Brit, by the way! :-)

Brit in Turkey

2/8/2013 4:33:51 AM

Peter Kypros: "the free part of Cyprus". You mean the north?

gercek sesi

2/8/2013 1:42:23 AM

thank you dutchturk for your support of yavru vatan!!! @peter kypros, dear sir are you saying that the Tcs have more faith in the Gcs who were responsible for makarious,enosis, eoka, the greek butchers sampson & grivas, who sought to ethnic cleanse the turkish cypriot community, the unfair economic embargoes the Gcs orchestrate to grind the TRNC to a premature death, without Turkey all your evil objectives would have been achieved, Turkish cypriots will always be eternally grateful to turkey!!


2/7/2013 7:39:02 PM

Nice !!! Turkey providing their brothers and sisters of North Cyprus with fresh water. We will always support you, like we did before. N..M.Turkum.D.

Peter Kypros

2/7/2013 7:07:36 PM

@john albay Obviously you are not one of those Turkish Cyprus who chose to move or work in the free part of Cyprus, or receive retirement benefits and free health from the Republic of Cyprus. If an enemy can do so much I wonder what your friends are doing for you. No one goes to an enemy for help. As for voting NO to unification the answer is simple. No one trusts Turkey including the vast majority of TCs. A clear agreement for unification will be welcome by all

john albay

2/7/2013 11:00:55 AM

This is wonderful news that our mother land Turkey is taking so much care for us! I hope soon we will be part of Turkey proper. The very last chance to reunite was lost after the evil greek cypriots voted NO and we voted yes to reunite.We can live side by side but never again mixed up and really never again under the rule of the greek cypriots who hate us so much!!!
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