TRNC ‘Cabinet’to holds lira crisis meeting on Tuesday

The Turkish Cypriot ‘parliament’ will meet on Tuesday in an extraordinary session to discuss the economic crisis in the country brought about by the fall of the Turkish lira in the wake of worsening US-Turkey relations.

Meanwhile, the TRNC ‘cabinet’ held a meeting on Monday to discuss the crisis and to come up with a series of measures to present to ‘parliament’.

According to Turkish Cypriot newspaper, Afrika, one of the steps that might be taken would be to ease restrictions on the amount of property foreigners could buy in the country and boost the economy.

Speaking at a news conference prior to the meeting, Turkish Cypriot ‘prime minister’ Tufan Erhurman said he would come up with tangible measures this week, which had been studied over the past 15 days in order to deal with the crisis.

He said he was to be given the results of studies carried out by each ‘ministry’ from which he would compile his report, after which they would present it to the ‘parliament’.

The measures, he said, would be implemented by decree, without the need for prior discussion at ‘parliamentary committee’ level due to the situation and the urgent need to preserve people’s purchasing power, which has fallen dramatically in recent weeks.

There is a state of emergency and we need to take measures on the economy, he said, according to the Cyprus News Agency.

Since last week, he added, he had been in touch with the political parties about a consensus on the measures that need to be taken in consultation with the head of the ‘central bank’ who also attended Monday’s ‘cabinet’ meeting.

Asked how bad it was for the north, he said he did not want to put out scenarios since it was not just an economic issue but also political, and a matter of international relations.

That’s why there can be no economic forecast. Nor can something be predicted politically or internationally. We do not know if this is a worst-case scenario, he said.

Erhurman said the first concern was keep the economy alive and to uphold purchasing power.

The minimum wage was hiked recently by some 200 lira per month for Turkish Cypriots but reports said it was not enough to ease the fall in the lira or the plight of Turkish Cypriots.

Those who are being paid in Turkish lira but pay certain bills in foreign currencies have been hardest hit, one newspaper reported.

The minimum wage continues melting away…. Four months ago, the minimum wage was 2,057 TL, which was equal to US$529 or £383 sterling or €430. The minimum wage has now increased to 2,279 TL, which according to the foreign exchange rates equalled US$437 dollars or £338 sterling or €379, it said.

Havadis newspaper said that as a result of the devaluation of the lira, and the successive price increases, trade unions and representatives of various sectors had asked for measures from the ‘government’ to protection people’s purchasing power.

North Cyprus is almost entirely dependent on Turkey for its financing and has been facing a serious crisis with some calls going out recently for Turkish Cypriots to adopt the euro.

According to information in the Turkish Cypriot press Turkey’s financing for 2018 reached 1.23 billion Turkish lira (€160m approximately).

Edited from Cyprus Mail.