‘Govt exerting extraordinary effort to manage TL crisis impact’

TURKEY is “no longer a place to grab money from but one of strategy and planning” — so said Finance Minister Serdar Denktaş in answering criticism of the government for not seeking funds from Ankara to help North Cyprus weather the economic crisis.

In an interview with the Tak news agency, Mr Denkaş told how the coalition had been “exerting an extraordinary effort” to manage the impact of the slump in the Turkish lira using the country’s own resources. While fluctuations in interest and exchange rates were beyond their control, he said, they had tried to provide some “ease” to people by restructuring debts and making transitional arrangements.

However the fact that the Price Stabilisation Fund was empty meant they could no longer intervene on fuel prices, although they would still try to help the public by “whatever means we have in our hands”.

Despite a series of enforced delays earlier in the year in activating the 2018 budget and signing the latest economic protocol with Turkey, Mr Denktaş said the government had experienced no difficulties in meeting its financial obligations, and commented: “This should be appreciated, but the opposition is trying to gain credit by displaying problems that do not exist but not saying how they will occur.”

They had not had any problems paying state sector salaries, he said, and would be able to fund the year-end 13th wage. However a 40 per cent cost-of-living rise was not practical under the circumstances.

On the plus-side, Mr Denktaş said a surge in the number of Greek Cypriots crossing to the TRNC to take advantage of the high TL value of their currency had benefited restaurants, supermarkets and some services, but he warned traders not to exploit the visitor boom by further hiking their prices.