Turkey grants an additional USD 135 mln to northern Cyprus

Turkey signed an economic and financial protocol with theTurkish Cyprriot administration last week, providing for USD 135 mln in financial assistance.

Prime Minister of the unrecognised Turkish Republic of Northern Cyprus Ferdi Sabit Soyer said that the financial support would be use for infrastructure investments and for the development of production, not for the current budget.

Turkey has subsidised the Turkish Cypriot economy for years.

Soyer also emphasised the importance of Turkish assistance, probably with reference to the EU. The EU recently agreed to release over EUR 120 mln in financial assistance for Turkish Cypriots although continuing rows with the (Greek Cypriot) Republic of Cyprus over how the money will be spent raises questions about whether it will ever be used.

The USD 135 mln is in addition to the USD 450 mln committed with the protocol dated April 18, 2003, and the financial support of USD 100 mln committed with the protocol signed in 2005.