Economic cooperation agreement signed
An Economic and Financial Cooperation Agreement for 2026 has been signed between the Turkish Republic of Northern Cyprus (TRNC) and Türkiye, allocating approximately ₺23 bn to support development and strategic sectors.
The agreement was signed in Ankara by Prime Minister Ünal Üstel and Türkiye’s Vice President Cevdet Yılmaz.
Speaking at the ceremony, Yılmaz emphasized their determination to implement strategic projects aimed at increasing the welfare of Turkish Cypriots, noting that 48 percent of the budget will be allocated to infrastructure and real sector projects, 10 percent to public finance support, and 42 percent to defense expenditures.
Following the signing, the two officials held a joint press conference, where Yılmaz described the agreement as a concrete reflection of the strong and enduring ties between Türkiye and the TRNC, reaffirming that Türkiye will continue to stand by Turkish Cypriots.
Yılmaz stated that of the total allocation, approximately ₺21 bn constitutes new funding, adding that a record 89 percent utilization rate had been achieved under the 2025 agreement.
He also highlighted ongoing and planned projects across multiple sectors, including the continued construction of Lefkoşa, Güzelyurt and Pamuklu state hospitals, digital transformation initiatives such as the Immigration Information System and Land Registry projects, as well as road infrastructure developments under the Highway Master Plan.
In addition, Yılmaz underlined increased support for the private sector, noting that direct contributions will rise to around 800 million TL, alongside the introduction of new interest-supported credit programs aimed at boosting investment, production and employment—particularly for youth and women.
Touching on regional developments, Yılmaz said tensions stemming from the ongoing conflicts involving the United States, Israel and Iran have negatively impacted economies, including the TRNC’s private sector.
He reaffirmed Türkiye’s continued commitment to supporting the TRNC’s sustainable growth and reiterated that efforts will persist to ensure Turkish Cypriots achieve their rightful place in the international community.
Addressing the Cyprus issue, Yılmaz stressed that a peaceful future on the island depends on the recognition of the inherent rights and sovereign equality of Turkish Cypriots, adding that Türkiye will continue its “justice struggle” in full solidarity.
He also warned that recent military engagements and alliance efforts by the Greek Cypriot side increase security risks on the island, stating that any approach ignoring the sovereign equality of the TRNC is “null and void” for Türkiye.
Yılmaz concluded by reiterating that all efforts are aimed at improving the living standards of Turkish Cypriots and securing the long-term future and prosperity of the TRNC, expressing hope that the agreement will bring positive outcomes.
