[Cyprus] North takes out loans for 13th salaries and pensions

On January 3 it emerged that authorities in Northern Cyprus have had to take out two loans to pay 13th salaries and pensions, Cyprus Mail reports.

The finance ministry took out a loan of €138m and the labour ministry took a larger loan of €158m to pay employees their mandatory 13th salary and to give pensions to the retired portion of the population, according to Cyprus News Agency reporting.

The economy was reportedly high on the agenda for this month’s parliamentary election campaign of all eight political parties.

News of the loans came about a week after a mass protest by Turkish Cypriot trade unions over the worsening economic situation in the north.

Organisers criticised the Turkish Cypriot authorities for not taking measures to protect salaries and pensions from the freefalling value of the Turkish lira.

In addition, they demanded that the cost of living reflects salaries and a currency that will protect people’s purchasing power.

Turkish Cypriots are currently experiencing a significant drop in their purchasing power as a result of the steep rise in prices on essential items, due to the devaluation of the Turkish lira.

The currency is now growing slightly stronger, however, it remains considerably weaker when compared with recent years. One euro now equates to around 14.82 Turkish lira, an improvement from a fortnight ago when one euro would get 18 lira.

On January 3 it emerged that authorities in Northern Cyprus have had to take out two loans to pay 13th salaries and pensions, Cyprus Mail reports.

The finance ministry took out a loan of €138m and the labour ministry took a larger loan of €158m to pay employees their mandatory 13th salary and to give pensions to the retired portion of the population, according to Cyprus News Agency reporting.

The economy was reportedly high on the agenda for this month’s parliamentary election campaign of all eight political parties.

News of the loans came about a week after a mass protest by Turkish Cypriot trade unions over the worsening economic situation in the north.

Organisers criticised the Turkish Cypriot authorities for not taking measures to protect salaries and pensions from the freefalling value of the Turkish lira.

In addition, they demanded that the cost of living reflects salaries and a currency that will protect people’s purchasing power.

Turkish Cypriots are currently experiencing a significant drop in their purchasing power as a result of the steep rise in prices on essential items, due to the devaluation of the Turkish lira.

The currency is now growing slightly stronger, however, it remains considerably weaker when compared with recent years. One euro now equates to around 14.82 Turkish lira, an improvement from a fortnight ago when one euro would get 18 lira.