Türkiye to allocate over 23 billion lira in aid to the TRNC under a new agreement

The agreement on economic and financial cooperation for 2026 between Türkiye and the TRNC has been officially published. The document appeared in the Official Gazette of Türkiye and provides for substantial financial support for the TRNC.

Under the agreement, Northern Cyprus will receive grants of up to 20.7 billion Turkish lira, as well as credit support of up to 2.3 billion lira.

The bulk of the grants — 10.315 billion lira — will be directed to infrastructure projects and support for the real sector of the economy. Another 735 million lira is earmarked for operating expenses, and 9.65 billion lira — for defense needs.

The credit support includes 300 million lira to cover the public sector budget deficit, 1.5 billion lira — for other public expenditures, and 500 million lira — to support reforms.

In return for the financial assistance, the TRNC government has committed to continue economic reforms, strengthen budget discipline, reduce the deficit of local authorities, and take measures to limit the growth of public debt.

The agreement also provides for the implementation of infrastructure projects both in Nicosia and Ankara within the framework of approved financing procedures.

The document is based on the framework cooperation agreement between the two countries and is aimed at further strengthening economic ties between Türkiye and the TRNC.