Cyprus: Our financial assets will disappear in no time

On top of this, in accordance with the provisions in the Plan, our security will be threatened as the guarantees of our motherland will be substantially pruned. We will have additional threats to our security from the settlement of about 100 thousand Greeks in our midst as demanded by the Plan. We know that threat will be directed against our prosperity also, the overall danger is beyond imagination.

There are two people, two states, two republics, they say, but they don’t speak of a common economy. There are two economies on the island one differing from the other, the Greek one being stronger, The Greek GDP is eight times higher than the Turkish Cypriot GDP.
In other words, they are richer than us. There are structural differences as well, Ours is federal, theirs’ is more centralist.

Our money, our financial system, taxes, custom duties and demographic structure are all different. Now, if you attempt to bring these two entirely different economies and systems together you’ll sign the death warrant of the smaller one. This is what is foreseen in the Annan Plan: to create a single Greek economy and bring the Turkish economy under it.
Everything in the Annan Plan, with the poor exception of boundaries, is single.

In our opinion, for the safety of our economy and as an actor contributing to competitiveness the two economies should be preserved, until the market conditions make a united economy possible. The recent opening of the border gates between North and South showed that spending is working against the Turkish economy.

The Turkish side is trying to address the issue with all its good intentions but, the bill is always stiff. As of June 2003, Savings were equal to about 1 quadrillion 54 trillion Turkish Lira, that is roughly 1.5 billion US dollars. About half of this amount is held in foreign currency (euro, sterling, dollar etc.) the remaining is in TL. According to the Annan Plan all these savings, irrespective of what currency they are held in, should be converted into Cyprus liras. For such a conversion the Cyprus Central Bank, due to Cypriot EU membership, will be asking the Central Bank of Turkey to settle accounts in Euros. According to an EU directive, when Cyprus, in two or three years, joins the Euro zone the Cyprus lira will not be allowed to float. It is expected then that it will undergo a devaluation of about 20 percent until it reaches its real market value.

In short, under the Annan Plan, our money will loose 20 percent of its value as a result of the conversion to Cyprus lira and all this without a word from us. The Central Bank of Turkey says it can give guarantees to Euro currencies only. Asset waelth rarely stop at banks. They go out, usually against property sureties and credit ratings. As most of the properties are expected to come under the preview of the Properties Commission to be set up in accordance with the Annan Plan it means that the bank credits advanced will soon be returned, which would mean the disappearance of your assets.

Is that clear? Horrible isn’t it? There is only one way to prevent such a terrible eventuality that is to vote for the parties saying ‘no’ to the Annan Plan in the upcoming elections.