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Promise for ‘reform’, ₺2.28bn (€377,4m) in support pledged
The Financial Cooperation Protocol was signed between Turkey and the TRNC digitally. The Anadolu News Agency announced that the agreement would be signed early yesterday (Tuesday) morning. The agreement was signed between Prime Minister Ersin Tatar and Turkish Vice President Fuat Oktay. Oktay said the ₺2.28bn (€377,4m) will be used for the recovery of the TRNC’s economy from the Covid-19 pandemic. (€87.8m) will be utilised for defence; ₺273m (€36.8m) for infrastructure; ₺116m (€15.6m) for the private sector investments and ₺1.15bn (€155.4m) to cover the budget deficit. A fire-fighting helicopter will also be stationed close to the TRNC.
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Let’s hope for the best
The economic and financial collaboration agreement worth ₺2.28bn (€377,4m) has been signed between Turkey and the TRNC. In line with the action plan, which is an annexe to the agreement, there will be limitations to the number of hiring new public sector employees. Additionally, the TRNC will submit an ‘economic protocol proposal’ in October covering the period until the end of 2020. The north additionally has been tasked to prepare a three-year economic plan which will include steps for structural transformation, macroeconomic goals, strategic objectives and reform actions.
- Healing the wounds of the fire – Volunteers and the civil society organisations started clearing the charred remains of the Tepebaşı (Diorios) forest fire. Additionally, the water canals directed at the monumental olive trees have also been cleaned. Ten remaining monumental olive trees will have a water supply. 81 of them had been destroyed in the fire.
The long-awaited agreement signed
The economic and financial collaboration agreement has been signed between Turkey and the TRNC. This was the first time an agreement between Turkey and the north was signed via videoconference. In line with the agreement, the Turkish Cypriot side will submit an ‘economic protocol proposal’ covering the period until the end of 2020 in October. The TRNC additionally is tasked to prepare a three-year economic plan which will include steps for structural transformation, macroeconomic goals, strategic objectives and reform actions.
- Work to bring back life – The water canals for the monumental olive trees, which were damaged due to the Tepebaşı (Diorios) forest fire, were cleared by volunteers and civil society organisations.
- The latest situation: North 108 cases, four deaths; South 939 cases, 24 deaths; Turkey 158,762 cases, 4,397 deaths.
Economy’s mast snaps off
The fact that tourist resorts have closed has lost the state $100m in revenues. Speaking to Diyalog, the head of the Turkish Cypriot Hoteliers’ Association Dimağ Çağıner said that hotels had remained closed for the first time during the Eid-al Fitr holiday. He reminded that a decision had been taken by the government to allow hotels to reopen as of June 1 but added that only 30 of 111 hotels in the country will resume operation because all air, land and seaports remain closed.
- Big support – Turkey will be donating ₺1.038bn (€139.9m) for defence expenditures while contributing ₺1.25bn (€168.4m) for the current budget in the form of loans.
- Two positive cases in the south again – 2,214 tests carried out in South Cyprus in the last 24 hours and 57 in the North.
- Death toll 4,397 –Case numbers in Turkey rose by 948 reaching a total of 158,762.
A new agreement with the sub-administration
The TRNC and Turkey signed yet another agreement for money flow from Turkey. The agreement, which was signed by Ersin Tatar and Turkish Vice-President Fuat Oktay through video-conference, is worth ₺2.28bn (€377,4m) and will be in the form of loans or grants. Both Tatar and Oktay delivered statements prior to signing the agreement. Tatar said the fund allocations will be as follows: ₺650m (€87.8m) will be utilised for defence; ₺273m (€36.8m) for infrastructure; ₺116m (€15.6m) for the private sector investments and ₺1.15bn (€155.4m) to cover the budget deficit.
Main News
North signs economic protocol agreement with Turkey
Yenidüzen, Kıbrıs Postası, Kıbrıs, Havadis, Diyalog, Afrika
Economy, Regional/International Relations
OVERVIEW
The “2020 Economic and Financial Cooperation agreement between the north and Turkey was signed on Tuesday, all dailies report on Wednesday.
As a result of the agreement, the north is obliged to present Ankara before the end of October an economic programme that will cover the period until the end of 2021.
Turkish Cypriot authorities will also need to prepare a three-year economic plan which covers structural transformation steps, macroeconomic goals, strategic objectives and reforms.
Moreover, the cabinet in the north is obliged to establish a three-team “project implementation and monitoring commissions” for each one of the ministries.
Turkish Cypriot Prime Minister Ersin Tatar, speaking on Tuesday, expressed his gratitude to Turkey’s support to the Turkish Cypriots.
He said the economic program is a detailed study which includes provisions to mitigate the negative effects of the coronavirus pandemic.
“The goal is to transform the coronavirus process into an opportunity for the north,” Tatar said, adding that Ankara, including the 2019 protocol agreement, has transferred nearly ₺3bn (€405,4m) to the north.
“As a result of Ankara’s support, the Turkish Cypriot infrastructure is stronger and is steadily increasing its competitiveness,” Tatar said.
He also said following the completion of the natural gas and the electricity supply projects, the energy costs in the north would be reduced to desired levels, which will contribute significantly to the increased competitiveness of the north.
Tatar also announced the breakdown of the ₺2.28bn (€377,4m) fund allocation from Turkey.
₺650m (€87.8m) will be utilised for defence; ₺273m (€36.8m) for infrastructure; ₺116m (€15.6m) for the private sector investments and ₺1.15bn (€155.4m) to cover the budget deficit, he explained.
Tatar also announced plans for a highway master plan, road repairs and maintenance, road infrastructures for the municipalities and the villages, the 500-bed capacity Nicosia hospital project, purchasing of medical equipment, rural-development and social services projects, agriculture investment support schemes, agriculture loan scheme, tourism support scheme, a loan scheme for the micro-enterprises and the industrialists, construction of a support facility for the physically disabled and the completion of the new prison are among the many projects to be supported with the funds allocated from Turkey.
Tatar highlighted that the economic protocol will also aim at increasing the added-value of the projects through the “TRNC-Turkey Infrastructure and Private Sector Financial Collaboration Instrument” (ARMA) and bring the Turkish Cypriot institutions to global standards.
Among other provisions, the economic protocol envisions limiting the number of personnel to be recruited in the public sector; coordinating and harmonising the e-governance transition with the one in Turkey; preventing the state enterprises from incurring losses and developing the capacity of the statistics department in the north.
The agreement also aims at restructuring the Turkish Cypriot Cooperative Central Bank to make it more professional and modern; analysing the financial stability of the social security system for the coming 20 years; preparing the master plan for ports in the north; implementing the tourism strategic plan and establishing the project steering commission and improving the business environment.
Other provisions include revising the existing practices and the agreements in commerce between the north and Turkey; implementing the energy productivity law; continuing with the electricity and natural gas interconnectivity project; establishing an integrated agriculture information system; implementing the higher education strategy action plan; increasing the capacity of the North Cyprus Investment Agency (YAGA) and the Project Development Unit under the Turkish Cypriot Ministry of Public works and communication.
Turkish Vice-President Fuat Oktay, during the economic protocol signing ceremony, said the ₺2.28bn (€377,4m) is being transferred to the north in the form of grant money and as a loan.
“Turkey will continue to be on the side of the TRNC while preparing for the new normal in the post-pandemic era,” Oktay said.
He also stressed Turkey is determined to take every step to ensure a sustainable economic structure in the north.
Oktay added the economic protocol agreement has been prepared for the north to overcome the economic problems caused by the Covid-19 pandemic.
“The agreement was prepared with the goal of healing the economic harm caused by the pandemic as well with a projection for a strong future,” Oktay stressed, adding there are new mechanisms in the agreement to increase the productivity of the projects to be carried out in the north.
He also argued the pandemic process has created new opportunities for the north’s economy.
“The agreement will be the basis for development,” Oktay stressed. He noted the post-coronavirus era brings new opportunities for further collaboration and initiatives.
“The current potential in the north will be supported with Turkey and guided with strategic taken forward. The future of the north will be brighter as a result,” Oktay concluded.
In the meantime, the opposition in the north was not as jubilant as the government concerning the signing of the agreement.
Tufan Erhürman, leader of the Republican Turkish Party (CTP), said the Turkish Cypriot side did not have the luxury to waste the ₺2.28bn (€377,4m).
“The cabinet in the north finally has decided to listen to our recommendations to cover the economic problems through foreign borrowing. It seems the resources will cover the needs in the north but we cannot be dissipating the money!” Erhürman stressed.
He noted the money transferred through the economic protocol agreement must be utilized initially in the health sector followed by the private sector and especially those who suffered significantly during the pandemic process.
Erhürman, however, criticized the government for keeping the opposition in the dark concerning the details of the economic protocol.
“Just as it did during the pandemic lockdown, the government chose to keep the opposition in the dark regarding the details of the protocol agreement,” Erhürman said.
He added that he will comment on its contents once the protocol agreement is made public.
“We do not know the details of the economic protocol but we are curious to learn what concessions or promises have been made in exchange for the economic protocol,” Cemal Özyiğit, leader of the Social Democratic Party (TDP) said.
Özyiğit, speaking to Kıbrıs Postası web TV slammed the cabinet for rushing into signing the agreement.
Also criticising the cabinet for not sharing any details of the agreement with the opposition, Özyiğit argued they did not know how much of the funds allocated will be in the form of grants and how much of it will be in the form of loans.
“There are too many details and these need to be detailed before we can make an evaluation of the signed agreement,” Özyiğit concluded.
Also speaking on Kıbrıs Postası web TV programme, Democratic Party (DP) leader Fikri Ataoğlu said he too was left in the dark on the contents of the protocol.
“Nonetheless, I really hope the necessary formulas to overcome the economic strife in the north will be provided by the protocol agreement,” Ataoğlu said.
He argued the cabinet did not listen to DP’s calls on overcoming problems both in the health and private sectors.
The leader of the Rebirth Party (YDP), Erhan Arıklı, on the other hand, welcomed the agreement signed on Tuesday with Turkey.
In a written statement, Arıklı argued that “the agreement is a strong message given to the Turkish Cypriot people.”
He added Ankara has once again come to the rescue of the Turkish Cypriots.
Arıklı noted the provisions of the protocol agreement will ensure the implementation of the much-needed reforms; will ensure executing the structural reforms and will establish a system in which the Turkish Cypriots will be able to stand on their own feet,” Arıklı concluded.
Accepting political equality is the path to solving the Cyprob
Yenidüzen, Kıbrıs Postası, Kıbrıs, Havadis, Diyalog, Afrika
Energy, Negotiations Process, Regional/International Relations
OVERVIEW
“As long as Turkey and the Turkish Cypriot people remain unified while trying to protect our legitimate rights and interests in the Eastern Mediterranean, no one can usurp our rights,” Turkish Vice-President Fuat Oktay said on Tuesday.
Oktay, speaking during the economic protocol signing ceremony, said Ankara remained committed to finding solutions to all disputes or conflicts which could lead to permanent instability in the region.
He urged the international community to convince the Greek Cypriot side for equitable sharing of the hydrocarbon resources with the Turkish Cypriots.
“The only way to solve the Cyprus problem on the island is to accept or recognize the political equality of the sides,” Oktay stressed, adding that Turkey was determined to protect the Turkish Cypriots’ legitimate rights until political equality was established on the island,” Oktay said.
“Turkey as a guarantor state will continue to do everything possible for the Turkish Cypriots to be in peace, to prosper on the island and to look to the future with security,” Oktay concluded.
Earlier on Tuesday, Tatar spoke to Turkish news channel NTV regarding the north’s success in fighting against the covid-19 pandemic.
He also touched on the hydrocarbons issue.
Tatar criticised the Greek Cypriot side’s unilateral actions in the region.
“The Greek Cypriot side’s unilateral actions by disregarding the Turkish Cypriots are unacceptable,” Tatar said.
He stressed there were two equal peoples on the island.
“Following the Libya agreement signed, the Turkish Cypriot side’s and Turkey’s positions have been strengthened tremendously. The anti-Turkey alliance will not yield anything,” Tatar concluded.
Tatar also noted the efforts to supply the north with natural gas are underway.
“The natural gas pipeline and the electricity line will be annexed to the existing water pipeline project,” Tatar said.
KEY ACTORS
Oktay (Turkey)
>> No one can usurp Turkish & TCs’ rights as long as Turkey & TCs remain unified.
>> Ankara is committed to finding solutions to all disputes which might lead to permanent instability in the region.
>> The int’l community should convince the GC side for equitable sharing of the hydrocarbon resources with the TCs.
>> The only way to solve the Cyprob on the island to accept the political equality between the sides.
>> Turkey is determined to protect the TCs’ legitimate rights until political equality is established on the island.
>> Turkey as a guarantor state will continue to do everything possible for the TCs’ to be in peace, to prosper on the island & to look to the future with security.
Tatar (UBP)
>> The GC side’s unilateral actions by disregarding the TCs are unacceptable.
>> There are two equal peoples on the island.
>> The TC side’s & Turkey’s positions have been strengthened tremendously following the Libya agreement.
>> The anti-Turkey alliance will not yield anything.
>> The natural gas pipeline & the electricity line will be annexed to the existing water pipeline project.