Turkey–TRNC Economic Cooperation Agreement for 2025 Published in Official Gazette

The 2025 Economic and Financial Cooperation Agreement between the Government of the Republic of Turkey and the Government of the Turkish Republic of Northern Cyprus (TRNC) has been officially published in the Official Gazette.

Signed on March 21 in Ankara, the agreement outlines Turkey’s commitment to provide 21 billion Turkish lira in financial support to the TRNC.

Now that it has been formally published, the agreement—already approved by the Council of Ministers—will be submitted to the Republic’s Assembly for review. It covers a broad range of initiatives, from infrastructure investments to reforms in public financial management.

Key Points of the Agreement:

• Financial Support for Development:
  Turkey will allocate 11.78 billion Turkish lira in grants for infrastructure and real sector projects. These funds will go toward the construction of roads, hospitals, and schools, as well as the improvement of municipal infrastructure. Additional funding has also been earmarked for defense-related needs.

• Commitment to Structural Reforms:
  The TRNC government has pledged to implement reforms aimed at increasing public revenues, reducing government spending, managing public debt, and lowering the budget deficit. Plans include revising tax legislation and developing digital systems for managing state finances.

• Public Sector Staffing Rules:
  In 2025, the number of newly hired public servants in the TRNC must not exceed the number of those who left their positions in the previous year. Recruitment data will be shared monthly with Turkey and monitored through a Personnel Notification Table, helping to enforce fiscal discipline and promote efficiency in public administration.

• Technical Assistance and Reform Support:
  As part of the agreement, Turkey will also provide technical support to the TRNC. A reform support grant of 450 million Turkish lira will be made available to help cover the budget deficit, conditional on the successful implementation of reforms.