Tougher economic times await the TRNC in 2019: TRNC PM

TRNC Prime Minister Tufan Erhurman has expressed his fear that tougher economic times await the country in 2019 as it will be impossible to talk about balancing the TRNC budget.

According to report by LGC news, Tufan Erhurman who spoke on a BRT television programme on Monday said that they are expecting “hot money” from Turkey, however, economic developments in Turkey will seriously reflect on the TRNC economy in 2019. 

He also noted that while they are preparing for the 2018 budget, their prediction is that the annual inflation rate will reach 10%. He, however, added that the realisation rate is expected to be 40.5%, something that would lead to a remarkable increase on the cost of living for January 2019. 

It is for this reason that 2019 will be a difficult year, Erhurman added.

He went on to say that the Ministry of Finance does not expect serious difficulties on the 2018 budget. Serious problems will arise in the 2019 budget due to the system change in Turkey, explained Erhurman.

Referring to the money they are expecting from Turkey, Erhurman said that 464 million TL will be allocated by Turkey to the TRNC for infrastructure projects. He noted that 160 million TL out of this total have been withheld.

Erhurman also said that preparations with Turkey for the economic protocol between Turkey-TRNC for 2019-2021 are ongoing.

LGC News