Occupied part of Cyprus expects flow of money

The breakaway regime expects flow of money from the government-controlled area
Turkish Cypriot daily Gunes newspaper (20.03.13) reports that the self-styled finance minister of the regime, Ersin Tatar, the self-styled president of the so-called central bank, Bilan San, the general secretary of the breakaway regime’s banks’ union, Halil Okur and academician Mustafa Besim assessed yesterday the economic crisis in the government-controlled area of Cyprus in statements to illegal TAK news agency.

Tatar argued that because of the haircut in the deposits and the disadvantages in the taxation, in case the proposal passed from the parliament, especially some British citizens might prefer to transfer their deposits to the banks in the occupied area of the Republic of Cyprus, which he described as “a save port” from the point of view of the banking sector and financing.

In his statements, San said that no direct influence is expected by the haircut in the deposits in the government-controlled area of Cyprus on the banks in the occupied area of the island, because they have no relation with the banks in the government-controlled area. Therefore no situation that necessitates additional measures exists, he added.

“However, the course of the above-mentioned crisis should be followed from now on”, he said arguing that the measures to be taken in the government-controlled area could cause flow of money to other countries.

“In this context it is said that there is possibility for flow of funds towards our country and that there have been demands in this direction”, he noted.

Okur said that the haircut of the deposits is something unprecedented in the world and it is wrong. “If the aim was to prevent the black money, this could be done by punishing these wrong practices”, he added.

Okur noted that the trust in the banking sector of the government-controlled area of Cyprus will decrease because of this haircut and added that the lack of trust will influence all the problematic economies of the EU and especially Spain, which will be seriously harmed. Okur said that they do not expect serious flow of money to the occupied area of Cyprus because of these developments, but argued that they should be careful about black money that might be transferred from the government-controlled to the occupied area of Cyprus.

On his part, Besim said that not only Europe, but the whole world will be influenced by the cut in the deposits. He argued that this development will direct the depositors towards gold. He also said that the competitiveness of the occupied area of Cyprus might be influenced, because of the decrease in the prices in the government-controlled area and that some Turkish Cypriots, who work in the government-controlled area, might lose their jobs.

Meanwhile, in statements to Anatolia news agency on the same issue, self-styled finance minister Ersin tatar argued yesterday that in case the rescue package did not pass from the House of Representatives, the Republic of Cyprus would come to the verge of disaster, it would officially bankrupt and the people would attack the banks

CNA