Details of draft economic protocol released

The details of the draft economic protocol were made public on Monday by Kanal Sim television. According to the provisions of the draft protocol to be signed between Turkey and the TRNC for the period 2016-18, the infrastructure of the ports and the telecommunication authority will be transferred to a private-public partnership. The retirement age will increase to 65, the cost of health care will increase and the state planning organisation will be abolished.

‘Halkin Sesi’ was one of the newspapers to report the details of the protocol as follows:

  • The retirement age will increase to 65 (the retirement age in North Cyprus increased seven years ago).
  • The electricity authority will be divided in three organisations and distribution will be privatised in December 2017.
  • Contributions to the social insurance and providence funds will increase.
  • A new penalty under the name of “probation tax” will be imposed on the debts owed to the state.
  • The professional chambers will not submit documents during the tender procedures.
  • The personnel expenses of the municipalities will not exceed 35% of their budget.
  • The funds will be totally and urgently abolished.
  • The ratio of the personnel expenses to the local income will decrease from 80% to 70%.
  • The contributions to the providence fund will be equalised.
  • Business tax will increase.
  • The bankruptcy and foreclosure system will be speeded up.
  • Turkey’s judiciary system will be implemented in the TRNC.
  • A mediation institution will be established before disputes going to court.
  • A public transportation company will be established with the participation of the municipalities.
  • The fees in the health sector will increase and an additional participation fee will be levied.
  • Pensioners who take up employment again will pay an insurance contribution but this money will not influence their pension.
  • Foreign investors in tourism will have easier access to public land.
  • The operation of the ports will be transferred to the private sector.
  • The infrastructure and the services in the telecommunications will be transferred to a public-private partnership.
  • Agricultural subsidies will be abolished.
  • The organisations for agricultural products and dairy products (TUK and SUTEK respectively) will be turned into intervention institutions.
  • Private insurance will be implemented in agriculture.
  • Overtime work will be abolished in the ports and customs and the two-shift system will be implemented.
  • Companies with foreign partners will be granted permits for transport/carrying vehicles.
  • The state planning organisation will be abolished.

Halkin Sesi

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