Finance Minister, Ersin Tatar issued a press statement yesterday saying that while the ministry was ready to transfer TL6 million funds as agreed, there first had to be a formal demand from Nicosia Council. This had not yet arrived.
Also, for the transfer to be legal, the municipality had to either request the funds for a specific period and then repay them, or agree to a reduction in its share of government funding.
The statement went on to say that the TL6 million would be used to pay wages in arrears to the council strikers but that council employees would have their wages reduced for the rest of 2013 to help pay back the advance. Mr Tatar claims that BES, the council workers union have agreed to this wage cut, though this is strongly refuted by the union head, Savas Bozat.
Mr Tatar went on to say that Nicosia Council should take advantage of the outstanding Ziraat Bank loan offer of TL 90 million and so replace expensive borrowings with a low interest one.