$500 million Ankara loan for north

Ankara has just approved a $500 million line of credit to the ‘Turkish Republic of Northern Cyprus’, according to a decree published in Turkey’s official gazette.

Turkish newspaper Daily Sabah reports that the loan “will be used in the restructuring of the public and financial sectors in the TRNC, as well as other fields included within the scope of the deal.”

The north will begin repaying the principal 36 months after the signing of the credit agreement.

Back in March, Turkey and the north signed an ‘investment-oriented’ agreement for financial cooperation.

According to Daily Sabah, the deal covers investments in important infrastructures, including the health system, main road projects and the establishment of a new industrial zone in the north, for which Turkey will provide support.

Last year, and in a separate arrangement, Turkey provided the north with €325 million in direct assistance to tackle the economic fallout from the coronavirus pandemic.