A Turkish Cypriot economist has described the new financial protocol signed between the TRNC and Turkey as a temporary solution and merely maintains the status quo.
According to economist Bülent Şemiler who was employed by the World Bank and was an adviser to former Turkish President Turgut Ozal, described the economic and fiscal cooperation agreement between Turkey and. of the TRNC as “temporary serum and not a package of reforms and prosperity that the island needs“.
In a report on the latest economic protocol, Şemiler said that a version of an old plan had been “copied and pasted” as if it were a new plan and that more borrowing was needed to maintain the old system, which was no longer sustainable.
He points out that at the end of 2019, the TRNC took 22 billion TL in loans from Turkey and 9 billion TL in domestic loans. “In other words, for the state’s 19 billion TL of GDP, it has a debt of 30 billion TL,” he said, adding that the ratio of public debt to GDP is 100%, instead of 60% in healthy economies worldwide.