Turkey will need to write off TRNC’s debt in the event of a Cyprob solution

The cost of funding a Cyprus settlement will be 23 billion euro, according to a study carried out by experts at the World Bank regarding compensations on the property issue, North Cyprus correspondent for Turkish daily Milliyet Sefa Karahasan writes.

It is noted that after territorial adjustments this figure might be decreased. It is also said that the Turkish Cypriot side will experience economic difficulties after the solution, but later these difficulties will be overcome and the situation will be improved.

The report was discussed during the US Assistant of State Victoria Nuland’s recent visit to the island. Nuland has reportedly given assurances that “whatever the number is, a large part of it will be paid by the EU”. The Cypriot leaders, on the other hand, gave the message that the solution will be difficult if the money for property compensation cannot be secured.

The paper adds the following:

“The USA, which thinks that the negotiations in Cyprus should not be interrupted, does not agree that the Greek Cypriots conduct new drilling activities in the Mediterranean. Washington warned the Greek Cypriot administration saying ‘do not conduct any new drilling operations until the end of 2016’. If the Greek Cypriot asks ‘what if the companies want to carry out drilling’, Milliyet asserts that the USA has threatened to intervene.

Moreover, the USA has suggested to Akinci and Anastasiades the creation of a ‘National Sovereign Fund’. The money accumulated in the fund will be an assurance for the financing which will be taken for compensations and debts.

It was revealed that the USA is behind the recent statements in the Greek Cypriot side that ‘if Turkey does not erase the debts of the Turkish Cypriots, there will be no solution’. It was made known that the US diplomat Victoria Nuland told the Greek Cypriot administration leader Anastasiades that she ‘expects Turkey to erase the debts of the Turkish Cypriots’.

During her meeting with the Greek Cypriot leader Nuland said ‘I expect Turkey to erase the past debts of the Turkish Cypriots after the solution and provide financial aid to the solution’. President Akinci, who during his meeting with Nuland said that ‘I cannot speak on Turkey’s behalf’, also explained that his expectation is for Turkey to erase the TRNC’s debts”.


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