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12° Nicosia,
04 February, 2023
 

Turkish aid to north comes to 430 million

Turkish Cypriot economy relying on economic boost from Turkey

Newsroom

The Turkish Cypriot economy is expected to get a boost from Turkish aid in 2018, with approximately €430 million being spent in different areas of the self-declared state in the north.

Around €39 million in the financial aid package from Turkey will be used to boost the Turkish Cypriot economy, according to Turkish Cypriot daily Kibris Postasi.

More than twice as much, approximately €90 million will go to infrastructure projects while €62 million will be used in defence.

Economic aid in the north has been a long and protracted debate among Turkish Cypriots, with many criticising Turkey of trying to impose its will with monetary aid.

Economic aid in the north has been a long and protracted debate among Turkish Cypriots, with many criticising Turkey of trying to impose its will with monetary aid

Turkey is now in pre-election campaign with Turkish voters heading to the polls on June 24, while critics say a state of emergency in that country does not offer ideal circumstances for fair elections.

In the meantime, the Greek Cypriot economy in the south, which is under the Republic of Cyprus, is currently on the rebound after a serious crisis that peaked in 2013.
The crisis was set off by a banking disaster and forced the country to enter into an international monitoring programme with lenders in exchange of reforms.

But the Turkish Cypriot economy in the north relies exclusively on Turkish help, as the northern part of the island is not recognised as a state anywhere in the world except Turkey.

Observers point out that the economy is concentrated heavily on the service sector, noting that nothing would have been possible without a Turkish lifeline funding the north’s economy.

An EU aid programme for the Turkish Cypriot community, about €450 million spent in the last decade, aimed to facilitate the reunification of Cyprus by encouraging economic development.

But it became increasingly difficult to achieve progress following recent failures in peace talks between the two communities.

TAGS
Cyprus  |  Turkey  |  economy  |  Turkish  |  Cypriot  |  reform  |  aid  |  EU

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