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Government Has Limited Means to Fight Inflation

Government Has Limited Means to Fight Inflation

July 17
10:23 2018

The TRNC coalition government is not divided, Prime Minister Tufan Erhurman has said.

The PM, who was speaking at a press conference on Monday about the latest economic and political developments in North Cyprus, refuted claims that the coalition government, which has been in office for five months, was in trouble. He added that speculation that there were serious disagreements between the coalition partners did not reflect the truth.

Erhurman also denied the rumours that there were secret back-door talks being held between some of the coalition parties and other parties, adding that this was absolutely untrue and out of the question.

North Cyprus News - Turkish LiraRegarding the economy, Erhurman said that “the greatest challenge faced by the coalition government was the sharp drop in the value of the Turkish Lira against foreign currencies”. He said that “the government had taken a number of measures” but noted that “there was only so much it could do taking into account the country’s dependency on importsOur goal is to reduce and minimize the impact of this loss on consumers and citizens”, he added.

Erhurman, who listed the measures introduced by the government, defended the government’s limited ability to minimize the impact of the loss in the value of the Turkish Lira. He nevertheless added that these measures were in place and had to some degree succeeded in lessening the impact.

The rising cost of living, which was envisaged as 5.2% at the beginning of the year when preparing the budget, has now risen by 12.11%. This is a heavy and extra burden on the budget, an additional 120 million TL burden”, he added.

Erhurman also explained that a meeting will take place with real sector representatives this week, as part of ongoing efforts to face the economic challenges in the country. He added that “the coalition government remained committed to continue working together to solve the country’s problems”.

BRTK