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State’s Ability to Fight the Economic Crisis is Limited

State’s Ability to Fight the Economic Crisis is Limited

August 23
08:37 2018

There are only limited moves that the government can make in the face of the economic crisis, the general coordinator of the Turkish Cypriot chamber of tradesmen and craftsmen, Hurrem Tulga, has said.

North Cyprus News - Turkish Lira purseThe country has no instruments that can have any meaningful effect on the current situation which has been created by the serious devaluation of the Turkish lira, he said. Tolga noted that an economic crisis occurs once every decade in the TRNC and pointed out that the country does not have the experience to intervene effectively in these events. North Cyprus is not prepared to face the crisis and it should have developed its economy, increased the purchasing power of the people, balanced the distribution of income and strengthened the price stability fund. He added that extending the period of loan repayments is not enough.

Meanwhile, Turkish Cypriot daily Diyalog newspaper published comments made by former TRNC prime ministers and ministers, who warned that the economic crisis could further escalate soon. Former prime minister, Hakki Atun argued that taxes should not be imposed on imports from Turkey and the country’s economic problems should be discussed with Ankara, in order to ease the consequences of the crisis. Former minister, Ozel Tahsin expressed the view that the trade unions should implement the government’s decision to reduce overtime payment and act together with the government to overcome the economic crisis. Former politician, Ergun Vehbi argued that the government acts like an amateur and added that money from Turkey should be secured.

Yeni Bakis, Diyalog