GREEK Cypriots contribute 15 per cent to the GNP of the Turkish Cypriots, Finance Minister Michalis Sarris said yesterday during the launch of two new schemes worth 30 million euros to boost trade between both sides.
In a joint news conference with Tasos Tzonis, the Director of the President’s Diplomatic office, Sarris said that trade through the EU’s Green Line regulation was a lot less than had been expected when they were approved three years ago.
He said trade from north to south under the regulation amounted to around 300,000 euro per month and trade from south to north only 100,000 euro per month.
Despite this Sarris said the contribution by Greek Cypriots to the economy of the north was significant.
“We estimate, on an annual basis, that the income in the occupied areas from the free areas comes to £100 million per year, which amounts to 15 per cent of GNP,” Sarris said.
He said this was due to direct spending by Greek Cypriots in the north, wages paid to Turkish Cypriots who work in the south and crossings by tourists from the south to the north.
The two new schemes announced yesterday are designed to further boost trade across the divide by tempting Greek and Turkish Cypriot traders to work together.
The first grant scheme, running from 2007-2013, will provides7 million euro for small joint ventures in specific areas with a ceiling of 200,000 euros for each business.
The second will provide grants to businesses, in specific selected areas, to upgrade the technology of ventures between the two communities and develop trade and the manufacturing of agricultural products.
The government has set aside 27 million euros with a ceiling of 500,000 euros each under this plan, which will run during he same time period as the first.
Both Tzonis and Sarris hoped the Turkish Cypriots would respond and take advantage of the schemes.
“We hope that the Turkish Cypriots will want to make use of these projects and we have reasons to believe that they will,” said Sarris.
“We encourage economic activity between Greek Cypriots and Turkish Cypriots. The Turkish Cypriots talk about isolation. Their self-isolation is the result of their own actions and policies.”
Tzonis also said restrictions imposed by the Turkish Cypriot side on Greek Cypriot trade to the north should also be lifted.
He said there was no “economic war” between the two sides but that the Turkish Cypriots had slipped into a “self isolation” due to the policies of their leadership.
“We urge the Turkish Cypriots to cooperate with Greek Cypriots to benefit the reunification of our economy, which eventually will help the reunification of Cyprus,” he said.
A Planning Committee is to be set up to administer the two schemes. This will be chaired by the Permanent Secretary of the Finance Ministry. Two Greek Cypriots and two Turkish Cypriots will make up the membership of the committee.
Applications for grants must be submitted by September 30, 2008, and Sarris said approvals should be granted by the end of that year.
He said they would be examined quickly, and would be flexible. “If for political reasons Turkish Cypriots are not allowed to make use of them, then that is another issue,” said Sarris.
“Our position is that the infrastructure of the Republic of Cyprus is always at the disposal of the Turkish Cypriots. The economic development of the Turkish occupied areas is something which we pursue and we are interested in merging the two economies.”
Tzionis said the two schemes were part of an overall package of measures which also includes a two-million euro fund to finance projects for civil society, which will be announced by the Interior Ministry.
