Turkey has established a new Cyprus Affairs Coordinating Agency which will be responsible for overseeing economic, financial, and technical assistance to the breakaway Turkish Republic of Northern Cyprus (TRNC) according to a circular published in the official gazette on Saturday.
A deputy president or a minister will be in charge of Cyprus’ affairs in order to ensure full coordination of Turkey’s relations with the TRNC, the decree said.
The new agency will have powers to establish working groups on specific issues, according to the circular. All public institutions will consult to the agency in affairs related to Cyprus, it said.
Reporting on the newly-established coordination agency, pro-government A Haber said that the “Monaco model,’’ which was first suggested in 2017 was also on the table.
Accordingly, the agency, led by the vice-president or a minister, would de facto seize the powers of the TRNC government.
The market-based economy of the TRNC is roughly one-fifth the size of its southern neighbor and is dominated by the service sector with a large portion of the population employed by the government, according to rating agency Moody’s. Since its foundation in 1983, the TRNC has heavily relied on financial assistance from Turkey, which supports the breakaway state’s defense, telecommunications, water, and postal services.