The Prime Minister of Northern Cyprus, Ünal Üstel, announced a new economic development strategy aimed at strengthening the financial independence of the TRNC and supporting key sectors, including real estate and construction. The statement was made during a meeting with representatives of economic organizations and is being implemented with the support of Türkiye under the economic cooperation protocol.
One of the key initiatives is the creation of a national credit card system. The launch of a local banking card, supported by special promotional programs, is expected to accelerate internal cash flow, boost business activity, and stimulate domestic trade in Northern Cyprus.
The government is also prioritizing expanded access to long-term, low-interest financing for the real sector. In parallel, measures are being considered to reduce logistics costs, including optimizing cargo transportation routes via the port of Mersin in Türkiye, which should help lower business expenses and slow price growth.
Additional support will be provided to industrial enterprises investing in research and development as well as production modernization, with expanded grant programs planned.
Special attention has been given to the construction sector, which, according to the Prime Minister, is facing legal pressure from the authorities of Southern Cyprus. In response, the government is preparing amendments to real estate legislation aimed at selling existing housing stock and attracting foreign investors under updated conditions. Developers facing financial difficulties may benefit from debt restructuring mechanisms through the banking system to prevent unfinished projects and protect jobs.
In conclusion, Üstel reaffirmed the government’s commitment to political stability, rejecting calls for early elections. The focus will remain on budget execution and infrastructure projects. The signing of a new financial cooperation protocol in February is expected to provide a strong boost to the economy and the Northern Cyprus real estate market.