On 27 October 2026, the Ministry of Finance of the TRNC borrowed billions of TL and millions in foreign currency through five separate borrowing operations.
The borrowing operations at the beginning and end of October are as follows. On 9 October 2026, 7 billion 255 million Turkish Liras were borrowed. In the second borrowing, which took place 18 days later on 27 October, 2 billion 320 million Turkish Liras were borrowed. In other words, the Ministry of Finance borrowed a total of 9 billion 575 million Turkish Liras in October. The average annual interest rate on these borrowings is 38.69 per cent. The maturity date for the 7 billion Turkish Lira borrowing on 9 October is 9 January 2027; the maturity date for the borrowing in Turkish Lira on 27 October is 19 February 2027. The borrowing in US dollars on 9 October 2026 amounted to 5 million dollars. On 27 October 2026, a further 25 million US dollars were borrowed via government bonds. The interest rate on the borrowing via Treasury bills was 4.25 per cent; the interest rate on the borrowing via government bonds was 5.30 per cent. Furthermore, on 27 October, 6.1 million euros and 6.85 million British pounds were borrowed. Thus, the total borrowing in British Pounds in October amounted to 10,350,000 Pounds; borrowing in US Dollars totalled 30 million dollars. The interest rate on the Euro borrowing via Treasury bills was 3.69 per cent. The interest rate on the British Pound Treasury bills was 4.66 per cent. The interest rate on the dollar-denominated bond issue is 5.30 per cent. The maturities for the euro and sterling bonds are 12 March. The maturity for the dollar bond is 1 November 2027. The Turkish lira maturities will fall due on 19 February and 27 January 2027.
Consequently, whoever comes to power after the 6 December elections will be unable to lift their head from debt repayments in 2027. One cannot help but think of the saying, "The donkey should be dragged by the one who killed it." But this is a complete disaster brought about by those responsible. Therefore, we must strive for change in the election.
In my view, these borrowings made in October may also have a ‘diabolical’ purpose. This could be to pay out the November salary at the end of November, followed by the 13th-month bonus before the 6 December election, one after the other. As for the December salary and beyond: “You’re on your own, I’m out of here.” Education, healthcare, agriculture, tourism, support for the economy – who cares? We’ve been through this before. Prior to the general elections held on 6 May 1990, the UBP Government of the time, under the guise of ‘switching to advance payments’, had paid double salaries to public sector and public-sector equivalent employees and pensioners as of 31 March 1990. Are these borrowings a preparation for paying the November salary and the 13th month’s salary back-to-back ahead of the 9 December 2026 elections? The election is again on the 6th. Those who consider anything permissible for the sake of the election may well do so.
There is no reason not to believe that the government, which is shying away from explaining such a large scale of borrowing, has this in mind. If that is not the case, why are these borrowings being made? However, the undeniable reality is that the Treasury is in dire straits. Consequently, change is essential.
