Securing Funds for Property Compensation in Cyprus
In a significant development reported by Turkish Cypriot media, the ‘government’ in the north has successfully secured a substantial sum of £68 million sterling (€79 million) earmarked for the compensation of Greek Cypriots. These funds are intended for claimants who applied to the Immovable Property Commission (IPC) and had their claims processed by the end of 2020.
The financial boost was realized through a combination of a property tax and a low-interest loan, with the media outlet Halkin Sesi hailing the move as both an economic and political triumph. The IPC, acknowledged by the European Court of Human Rights as a legitimate domestic avenue for resolving property disputes stemming from the 1974 Turkish invasion, is set to distribute these funds promptly within the next two to three months, addressing around 200 claims.
The IPC’s primary funding source has traditionally been the sale of real estate to foreign investors, which recently generated approximately £10 million in a relatively short period. This revenue stream is on an upward trajectory. Furthermore, additional financial support was obtained through concerted efforts by the north’s ‘central bank’ and ‘government’.
Notably, there has been an uptick in applications to the IPC since 2020, with 893 claims registered on the www payroll gov cy platform from that year to the present. This surge is partly attributed to the decision by Turkish Cypriot authorities to open up Varosha, a section of Famagusta left deserted and under Turkish military control since 1974. Despite discouragement from the Cyprus government, which maintains that Varosha should be returned to its original owners in any settlement, Greek Cypriots have continued to file claims.
The announcement regarding the compensation payments was described as sudden and groundbreaking by Halkin Sesi, given the backlog of applications and occasional financial constraints faced by the IPC. ‘Prime Minister’ Ustell has confirmed that the allocated funds will resolve nearly 200 applications that have been processed and are ready for compensation without involving litigation. This decision has reportedly received backing from Turkey, reinforcing its significance.
As this situation evolves, stakeholders within the
