What’s made him smile?
TURKEY is to inject an extra 2.5 billion TL (£272m) into the North Cyprus economy to “heal the wounds” left by the corona virus crisis.
A new agreement includes a commitment to press on with planned gas and electricity to be supplied by cable from Turkey and ambitious moves to overhaul the social security system.
But the deal, signed in a video link-up on the last day of Ramadan this week between Prime Minister Ersin Tatar and Turkish vice president Fuat Oktay, comes with conditions, setting out a three-year “Action Plan” for the country.
Both sides agreed that the TRNC government must prepare a new Economic Programme for 2021, by the end of October this year. Crucially, this coincides with the date for the Presidential Election, in which Mr Tatar was running as favourite before the lockdown.
Another key condition linked to the election, is a freeze on public sector recruitment, with a pledge not to create any new jobs, but to fill only those left vacant according to last year’s staffing figures.
It is common in North Cyprus for new jobs to be created to win support ahead of presidential, parliamentary and local elections.
The “2020 Economic and Financial Cooperation Agreement between the Republic of Turkey Government, and Turkish Republic of Northern Cyprus Government,” comprises a series of grants and loans,
Broadly speaking, the protocol provides 650 million TL for defence, near to 273 million TL for infrastructure and 116 million TL for additional spending. Among the key features are:
A Strategic Tourism Plan is to to be instigated following the approval of the Council of Ministers and an ‘Action Plan Observation Commission,’ will be formed to oversee progress.
Every TRNC ministry must assign at least three officials to take part in the Commission.
Other key elements include:
A Higher Education Strategic Action Plan Preparing a master plan for TRNC ports The development of a TRNC statistical body (Office of National Statistics) Restructuring the state-owned Koop Central Bank
Increase the technical and administrative capacity of the North Cyprus Investment and Development Agency (YAGA) An analysis of finances and restructuring the Social Security system for the next 20 years
Mr Tatar, speaking before the signing, wished the agreement to bring ‘goodness’, adding: “What is important is for the hard work and sacrifice shown during the corona phase to be turned into an opportunity to make the TRNC arrive at more prosperous days and a more secure future.”
“What matters is to strengthen the real sector and infrastructure – to making successful the tourism and higher education sectors, and to work for the marketing of properties abroad, and making agricultural sector sustainable.”
Mr Tatar also said: “TRNC has increased its trade mark in terms of tourism and higher education.” He said the undersea pipeline that transports an annual 75 million m3 of water to the Geçiktöy dam, could be a model for transporting natural gas and an electricity cable, providing sustainable energy costs for the the TRNC.
Mr Oktay said the agreement was designed “to heal the economic wounds in the quickest manner”, adding the agreement was based on a “strong projection for the future.”
“The Agreement is the basis for the ascent of the TRNC. . .we are transferring 2 billion 288 million 976,000TL in the form of financial assistance and loans. The agreement, in addition to spending in the defence, infrastructure and real sector investments. . will also contribute to supporting the budget deficiency, the Tourism Covid-19 Outbreak Support Programme, Rural Development and Social Service Project, Agricultural Investment Support and Agricultural Investment Loans.”
He added it will also be used to offer loans to small-to-medium sized shop owners and artisans. “Post Covid offers the TRNC channels of new opportunities, openings and fields of cooperation,” he said.
Mr Oktay said many developed countries in the world had suffered “serious effects” in terms of trade, economics and production. “Whilst the world passed through such a difficult test, the TRNC, with its determined government and support of its citizens, put forward a complete success story that is worthy of commending.”
Explaining that Turkey had dispatched medical materials and masks to 82 countries, including NATO member states, he said “but in priority we, as necessitated by our brotherhood, stood by the TRNC and the Turkish Cypriots. .”