Turkey has granted TL 9 billion ($3.36 billion £2.2 billion) in total to North Cyprus over the last 10 years. In addition, the foreign trade volume between them has reached $1.3 billion
The TRNC has received almost TL 9 billion ($3.36 billion) in direct state assistance for security, investment and credit from Turkey since 2006, according to figures compiled by Anadolu Agency. Trade figures also show that Turkey has played an important role in developing the TRNC’s economy. Bilateral foreign trade volume, which is one of the main factors showing the bourgeoning economic ties, annual trade between TRNC and Turkey has increased by 60% between 2005 and 2014 to TL 1.3 billion.
Despite the global economic crisis, positive developments in foreign trade have highlighted the importance of Turkey for the TRNC’s economy.
According to the data of the Turkish Statistics Institute, despite certain sanctions and embargoes, the foreign trade volume between the two countries increased by 60% between 2005-2014, reaching $1.3 billion and the TRNC has received both investment and loan incentives from Turkey along with other similar grants, totalling nearly TL 9 billion.
As of last year, mineral oils and fuels were the two product groups most exported from Turkey to the TRNC, equalling $402 million, followed by boilers, machinery and mechanical devices worth $71 billion and plastic products worth $57.2 million.
Products sold by the TRNC to Turkey last year were mostly dairy products, eggs, honey and other animal products, equalling $27 million. While imports of fresh fruit were around $15 billion, iron and steel imports were around $8.8 million.
One of the most important economic areas between Turkey and the TRNC was Turkey’s support for the TRNC to achieve a balanced budget. Further, Turkey’s stance was supporting the payment of the TRNC government officers’ wages and helping out with government expenses. Since 2006, 2013 was the year in which the highest grant was awarded to TRNC, equalling TL 1.7 billion.
The development of the economy and social life on the island was also due to the increase in the number of students. The number of universities increased in the TRNC and between the 2013 and 2014 academic year, the number of students increased by 13% to 62,726, out of which 34,858 were Turkish citizens.
Turkey’s support for the TRNC was not only limited to grants for the budget and foreign trade, but also the TRNC Drinking Water Procurement Project, which ensured that drinking water and water for irrigation is delivered to the island through an 80 kilometre-long pipeline.