Following major announcements yesterday from Turkey about reducing funding to North Cyprus and diverting funds away from state salaries to private investment, Finance Minister, Ersin Tatar, released a statement affecting TRNC state employees.
He said that this year, the 13th month salary was not in danger, however he did confirm that Turkey was significantly reducing its contributions to the account which is used to pay these salaries. This funding was reduced from TL 600 million in 2009 to TL 350 million in 2012. The proposed contribution in 2013 will be just TL 300 million.
Mr Tatar said that he estimates the 2013 account deficit will be around TL 118 million and that in these circumstances the Government cannot give state employees the salary increases it would like to.