Economist declares 'system collapse': debts and inflation rise in Northern Cyprus

Economist and People's Party representative Ahmet Melih Karavelioğlu sharply criticized the economic situation in the occupied territories, declaring a "complete collapse of state seriousness." On a local TV broadcast, he accused the "authorities" of a lack of transparency after inflation data for April had not been published, despite Turkey already presenting its figures. According to Karavelioğlu, hiding or delaying statistics undermines public trust and makes effective economic planning impossible.

The economist claims that real inflation since the beginning of the year has already reached 38%, while the cost of food, fuel, and basic services continues to skyrocket. Against this backdrop, he said the national debt has increased to 22 billion Turkish Liras — approximately 413 million euros. Karavelioğlu noted that the "government" has effectively exhausted opportunities for new borrowing, and banks can no longer provide the necessary liquidity.

Of particular concern, he said, is that new loans are used mainly to pay salaries, without a clear repayment plan. The economist also criticized the bloated public sector, stating that the system is overcrowded with inefficient jobs, while the authorities avoid necessary reforms due to political populism.

Karavelioğlu specifically addressed the problems in agriculture and livestock farming. He emphasized that high prices for imported feed and the lack of new producers are leading to the decline of the industry, with many farmers moving into the service sector. As one measure, he proposed legalizing and taxing meat imports from the free zones of the Republic of Cyprus, which, in his opinion, could lower prices for consumers and increase budget revenues.

In conclusion, the economist stated that residents are "tired of promises" and expect a concrete program of action from politicians. According to him, society needs solutions explaining not only "what to do" but also "exactly how" to lead the economy out of the crisis.