2026 Economic and Financial Cooperation Agreement

Short answer: The 2026 Economic and Financial Cooperation Agreement is the agreement regulating the grant and loan support that Turkey will provide to Northern Cyprus (TRNC) for 2026, and it was signed on 9 April 2026. According to reports on the text published in the Official Gazette, 10.3 billion TL of up to 20.7 billion TL in grants was allocated to infrastructure and real sector projects. The targets announced at the signing ceremony included opening the Girne Mountain road before the end of the year, completing Pamuklu State Hospital by 15 November, and completing TAKBİS.

This article was prepared for buyers who own a home in the TRNC or are choosing a region. We bring together the agreement’s figures and the announced projects in a simple table, and discuss which investment may affect which region. If you would like to compare regions in terms of lifestyle and prices, you can first read our guide on where to buy a home in North Cyprus.

What is the 2026 Economic and Financial Cooperation Agreement?

The economic and financial cooperation agreements signed every year between Turkey and the TRNC determine the amount of grants and loans provided by Turkey to the TRNC, their areas of use, and the reform commitments undertaken by the TRNC government. These agreements are an important source of financing for public infrastructure investments in the TRNC.

According to Kıbrıs Postası’s report dated 9 April 2026, the 2026 agreement was signed by TRNC Prime Minister Ünal Üstel and Turkish Vice President Cevdet Yılmaz. Yılmaz said that, together with allocations carried over from previous years, approximately 23 billion TL in resources had been allocated, of which 21 billion TL was new funding. The announced distribution was as follows: 48% of the resources for infrastructure and real sector projects, 10% for public finance support, and 42% for defense expenditures.

Figures according to the Official Gazette text

After the agreement was published in Turkey’s Official Gazette, reports on 22 May 2026 provided the items in the text in detail:

The difference between the 23 billion TL mentioned at the signing ceremony and the 20.7 billion TL in the Official Gazette summary may stem from whether carried-over allocations and the loan item are included in the calculation; the reports do not make this distinction clearly. Under the agreement, the TRNC government commits to implementing the reforms in the action plan, taking revenue-increasing and expenditure-reducing measures within the framework of fiscal discipline, and preventing the growth of the debt stock of public institutions.

Announced infrastructure projects

The projects conveyed by Cevdet Yılmaz at the signing ceremony stand out for the housing market primarily under the headings of roads, healthcare, and digital infrastructure. Here is the summary we prepared based on Kıbrıs Postası’s report:

The report also states that a total of 822.2 km of roads have been built to date (213 km of divided roads, 433 km of single-direction roads and 176.2 km of third-class roads), that 344 thousand saplings have been planted within the scope of road tenders, and that 150 smart traffic devices have been installed. The extent to which the targets in the table have been achieved as of October 2026 should be verified from the current announcements of the relevant ministries.

Statements were also made regarding digital services. According to the report, the E-Government mobile application entered service in August last year, and the doctor appointment system in March 2026; the Immigration Information System is planned to be launched in 2026. Although such systems are not direct housing investments, they are infrastructure that facilitates official procedures for people moving to the island or owning property on the island, indirectly contributing to quality of life.

Real sector support, tourism and the construction sector

The agreement’s infrastructure item covers not only roads and hospitals, but also “real sector” support. At the signing ceremony, Yılmaz announced that direct support for the real sector had been increased to approximately 800 million TL and that five new interest-supported loan programs had been created for agriculture, SMEs, tradespeople and the service sector, SME investments, and medium-sized tourism facilities. He also said that approximately 89% of the 21 billion TL allocated under the 2025 agreement would have been used with the final transfer in April.

The report also states that Prime Minister Üstel mentioned the goals of extending the tourism season and increasing tourism revenues, and that agreements had been made with airline companies under the “Ada Kıbrıs” brand. The spread of tourism demand across the year is a development to monitor for holiday homes used for short-term rentals and hotel investments; however, the impact of these goals on residential rents is not yet measurable.

It is also possible to see the weight of public investments in the construction sector in the Statistics Institution’s 2025 bulletin. According to the bulletin, in 2025, 277 public-sector buildings in urban areas and 195 in rural areas received final approval; the majority of these were infrastructure in nature (261 urban and 161 rural buildings). Since public tenders use the same pool of contractors, workers and materials as private housing projects, the sector’s capacity planning also becomes important during periods of major public investment.

What do infrastructure investments mean for regions?

Among the leading factors affecting residential value and daily quality of life are travel time, access to healthcare services, and internet infrastructure. When we evaluate the announced projects from this perspective, the following points stand out:

• Girne: The opening of the Girne Mountain road stands out as a project that could ease transportation between Girne and inland regions. For choosing a neighborhood in Girne, you can read our guide to buying a home in Girne.
• Güzelyurt and the west: The new state hospital may strengthen access to healthcare services for families and retirees living in the region. We explained the region’s living conditions in our Lefke and Güzelyurt region guide.
• Karpaz: The completion of the Dipkarpaz–Zafer Burnu road is a step that makes access to the far end of the peninsula easier. For those considering a home in Karpaz, our article on buying a home in Karpaz may be helpful.
• Lefkoşa: The new state hospital and the school campus in Gönyeli are projects to watch in terms of family housing demand in and around the capital.
• Entire country: The spread of fiber infrastructure is a decisive criterion in housing selection for remote workers; digital title deed systems may also directly affect the speed of purchase transactions.

Let us add a caution: the impact of an announced infrastructure project on housing prices depends on the project actually being completed and on the supply-demand balance in the region. A project that is still at the tender stage should not be made the sole reason for a purchase decision. It should also be remembered that the timelines of some investments announced in the past have been extended; therefore, evaluating an infrastructure project together with the progress you can see on the ground today will produce healthier results. In addition, a new road or hospital can also increase traffic and construction density in the region; for buyers seeking tranquility, this may be a downside as well as an upside.

Buyer’s follow-up checklist

When evaluating infrastructure promises, it is important to focus on concrete and verifiable information. If you are considering a home in a region, we recommend the following steps:

1. Find out the project stage: Check the announcements of the relevant ministry to see whether it is at the tender, construction, or completion stage.
2. Note the dates: Track whether target dates such as 15 November for Pamuklu hospital or year-end for the Girne Mountain road are met.
3. Measure distance using today’s roads: Base your decision on today’s travel time, not calculations in sales presentations that assume “when the new road opens”.
4. Ask about internet infrastructure on site: Confirm with operators whether a fiber connection is actually available in the complex or on the street. We compared the options in our article on TRNC internet and phone lines.

Frequently asked questions

When was the 2026 Economic and Financial Cooperation Agreement signed?

The agreement was signed on 9 April 2026 by TRNC Prime Minister Ünal Üstel and Turkish Vice President Cevdet Yılmaz. It was reported in news dated 22 May 2026 that the agreement had been published in Turkey’s Official Gazette.

How much funding was allocated to infrastructure in the agreement?

According to reports on the Official Gazette text, 10.315 billion TL of up to 20.7 billion TL in grants was allocated to infrastructure investment and real sector projects. At the signing ceremony, it was announced that, together with carried-over allocations, 48% of the total resources would go to infrastructure and the real sector.

When will the Girne Mountain road open?

At the signing ceremony in April 2026, it was announced that work on the Girne Mountain road was being carried out in three sections and that it was targeted to open before the end of the year. As of October 2026, verify the current status from the announcements of the Ministry of Public Works and Transport.

When will Pamuklu State Hospital open?

At the signing ceremony, it was announced that the opening of Pamuklu State Hospital was planned to be completed by 15 November. In the same statement, it was stated that construction of Güzelyurt State Hospital was targeted for completion in April, and that the structural works at Lefkoşa New State Hospital had reached the first floor.

Do infrastructure projects increase housing prices?

Infrastructure investments such as roads, hospitals and internet can support housing demand by increasing a region’s livability. However, the size of the effect depends on the completion of the project, the supply of new housing in the region, and general economic conditions. A project that has not yet been completed should not be made the sole basis for price expectations.

If you would like to evaluate infrastructure projects together with your housing options while choosing a region, you can contact the Akol Global team; let us compare regions with concrete information.

This article is for informational purposes only; it does not replace legal, tax or financial advice. Last updated: October 2026.