Parliament on Thursday approved legislation that allows Greek Cypriots leasing Turkish Cypriot properties in the south to use them for commercial purposes.

The bill had been tabled by Diko MP Panicos Leonidou.

Up until now, properties belonging to Turkish Cypriots – and under the custody of the interior ministry since 1974 – could only be used for residential purposes.

The new law allows residents to now also use the properties – in whole or in part – as business premises.

Greek Cypriot residents will be able, for instance, to open up a beauty salon or operate a kiosk.

According to Leonidou, these business operations will be allowed provided all the required permits have been secured.

The MP said his proposal was aimed at helping thousands of Greek Cypriot displaced persons, now living in the south – particularly amid the current difficult economic conditions.

The state currently subsidises the Custodian of Turkish Cypriot properties – which manages properties belonging to Turkish Cypriots who moved north in the wake of Turkey’s invasion of 1974, to the tune of €8m a year.

Operating under the interior ministry, the Custodian is charged with ‘leasing’ these properties to refugees but has repeatedly been accused of mismanagement and favouritism. Complaints have included reports of cases where the best property had been leased to those with connections, and cases where the lease has been ridiculously low.