The Ministry of Finance in the Turkish Republic of Northern Cyprus (TRNC) has undertaken significant borrowing to facilitate the salary payments of public employees. Following the disbursement of pension payments yesterday, the salaries of public employees are scheduled to be paid today.
On August 27, 2026, the Ministry of Finance conducted four separate treasury bond auctions through the Central Bank. In these auctions, a total of 4 billion 715 million Turkish Lira, 7 million US Dollars, 4 million 260 thousand Euros, and 1 million British Pounds were borrowed. There was a strong interest observed in the treasury bonds offered to investors.
In particular, for the 91-day treasury bond auction denominated in Turkish Lira, an auction amount of 4 billion 300 million Lira was established. A total of 5 billion 750 million Lira was offered for this auction. Ultimately, a nominal sale of 4 billion 715 million Lira was realized. The average interest rate on the treasury bonds was set at 38.60%.
For the 133-day treasury bond auction conducted in US Dollars, an auction amount of 8 million Dollars was determined. The auction received offers totaling 7 million Dollars, which were fully accepted, resulting in a nominal sale of 7 million Dollars. The interest rate for these bonds was announced as 4.08%.
For the auction with a nominal sale of 4 million 260 thousand Euros, 6 million Euros was entered. These bonds traded at an interest rate ranging from a minimum of 3% to a maximum of 3.55%. Regarding the British Pound, a nominal sale of 1 million Pounds was achieved, with an interest rate recorded at 4.74%.
The total amount of debt obtained by the Ministry of Finance from these four separate auctions was established at 4 billion 715 million Lira, 7 million US Dollars, 4 million 260 thousand Euros, and 1 million British Pound. Additionally, following the payment of pension salaries, how the payments for public employees’ salaries will be sustained has become a topic of curiosity.
As a result, the continuous borrowing in the TRNC’s operations reveals the inadequacy of income sources in the country. The effects of this situation in the coming days are being closely monitored.
Source: www.diyaloggazetesi.com
