The Council of Ministers has approved the “2025 Economic and Financial Cooperation Agreement” signed between the Government of the Republic of Türkiye and the Government of the Turkish Republic of Northern Cyprus (TRNC) on March 21, 2025, in Ankara.
The agreement, signed by Türkiye’s Vice President Cevdet Yılmaz and TRNC Prime Minister Ünal Üstel, will be published in the Official Gazette and submitted to the TRNC Parliament for further processing.
According to the agreement, the TRNC Government has committed to implementing the reforms and actions listed in the accompanying Türkiye-TRNC Cooperation Framework Document Action Plan. It also pledges to enforce revenue-enhancing and expenditure-reducing reforms and legislation to reduce the budget deficit in the 2025 fiscal year and to strengthen fiscal discipline.
Additionally, the TRNC aims to prevent the growth of debt stock across all public institutions, including state-owned enterprises, and to ensure debt sustainability.
The Government of Türkiye, for its part, has pledged to provide up to ₺19bn in grant aid.
This includes ₺11.78bn for infrastructure investment and real sector projects, ₺620m for operational funding, and ₺6.6bn for defense allocations.
Furthermore, Türkiye will offer up to 2 billion TL in credit assistance, equivalent to its USD value, as outlined in the annexed financial tables.
BRT
