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Turkey: Does Ankara Hold the Key to Ending Cyprus Financial Woes?

Turkey’s possible need for energy resources from Cyprus may benefit Ankara into mediating a settlement for the divided island. (Photo: Council of Europe)

Turkey’s potential as a regional energy hub could help alleviate the financial turmoil hitting the divided Mediterranean island of Cyprus, analysts say. But before any steps are taken, Ankara would like to see movement toward a resolution of the decades-long conflict between Greek and Turkish Cypriots. And that is a long shot over the short term.

The International Monetary Fund’s 1-billion-euro (over $1.28 billion) contribution to a 10-billion-euro (over $12.8 billion) rescue package, announced on April 3, may ease concerns that the meltdown of Cyprus’ financial system could trigger a major crisis for the euro zone, but Greek Cypriots still have an incentive to seek alternative ways of stimulating their economy, observers note.

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Justin Vela is a freelance reporter based in Istanbul.

Turkey: Does Ankara Hold the Key to Ending Cyprus Financial Woes?

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