Northern Cyprus has secured £68 million (€79 million) to address Greek Cypriot property claims through the Immovable Property Commission (IPC), resolving about 200 claims by the end of 2020. The IPC, recognized by the European Court of Human Rights, is playing a pivotal role in settling disputes stemming from the division of Cyprus.
How is Northern Cyprus addressing Greek Cypriot property claims?
Northern Cyprus has secured £68 million (€79 million) to settle property claims by Greek Cypriots through the Immovable Property Commission (IPC). This fund is expected to resolve about 200 claims by end of 2020, with payments within the next two to three months. The IPC is recognized by the European Court of Human Rights for resolving disputes from Cyprus’s division.
Securing Funds for Compensation
The administration in Northern Cyprus has recently secured significant funding to address property claims from Greek Cypriots. A total of £68 million, equivalent to approximately €79 million, has been earmarked to settle compensations for applicants to the Immovable Property Commission (IPC). This decision marks a substantial move towards resolving property disputes that have been a longstanding issue since the events of 1974.
Turkish Cypriot authorities have raised these funds through a property tax and procured a low-interest loan, marking what has been described by local media as both an economic and a political achievement. The earmarked amount is slated to resolve around 200 claims, where decisions were made by the end of 2020, without any further adjournments, with an expectation of payment occurring within two to three months.
The Role of the IPC
The IPC plays a critical role as it is recognized by the European Court of Human Rights as a domestic avenue for the resolution of property disputes in Cyprus, stemming from the island’s division. As of mid-April 2024, the commission has received 7,549 applications, with 1,759 having reached a conclusion and the claimants compensated. However, there remain about 6,000 applications that are still pending.
The primary source of the IPC’s funding historically has come from the sale of real estate to foreign investors, which has proved to be a lucrative endeavor, amassing around £10 million in a brief window and showing signs of growth. Additional financial support was sourced by the ‘central bank’ of the North and the ‘government’, securing the remainder of the necessary funds.
Impact of Varosha and Claims Post-2020
The situation took a turn following 2020 when the Turkish Cypriot leadership announced the opening of the fenced-off area of Famagusta, known as Varosha. This led to an increase in applications to the IPC, likely fueled by the potential of Varosha – a ghost town since 1974 – becoming accessible once more. Prior to this, the Greek Cypriot refugees were often discouraged from filing with the IPC due to expectations that the area would be returned under a future settlement of the Cyprus issue.
This increase in applications has put additional pressure on the IPC, which has experienced intermittent funding shortages. The recent announcement of the compensation payout has therefore been labeled as sudden and radical, considering the buildup of applications. The decision, supported by Turkey, is set to address the purchase of thousands of acres of new land and the settlement of claims processed until the end of 2020.
The Economic and Political Landscape
The move to allocate funds for property compensation is intricately linked to the economic and political narrative of Cyprus. It reflects not only the desire to resolve long-standing grievances but also a pragmatic approach to managing real estate and foreign investment in the region. The IPC’s approach has demonstrated a systematic method of addressing property disputes, with the European Court of Human Rights’ recognition lending further legitimacy to its operations.
In conclusion, the commitment to pay out compensations signals a step forward in the complex dialogue surrounding property and reconciliation in Cyprus. While the future remains uncertain, such actions suggest a readiness to tackle some of the challenging legacies of the island’s past.
How is Northern Cyprus addressing Greek Cypriot property claims?
Northern Cyprus has secured £68 million (€79 million) to settle property claims by Greek Cypriots through the Immovable Property Commission (IPC). This fund is expected to resolve about 200 claims by end of 2020, with payments within the next two to three months. The IPC is recognized by the European Court of Human Rights for resolving disputes from Cyprus’s division.
How did Northern Cyprus secure funds for compensation?
The administration in Northern Cyprus secured significant funding through a property tax and a low-interest loan to address property claims from Greek Cypriots. A total of £68 million (€79 million) has been earmarked to settle compensations for applicants to the Immovable Property Commission (IPC), resolving around 200 claims by the end of 2020.
What role does the Immovable Property Commission (IPC) play in resolving property disputes in Cyprus?
The IPC plays a critical role in resolving property disputes in Cyprus stemming from the division of the island. Recognized by the European Court of Human Rights, the IPC has received 7,549 applications as of mid-April 2024, with 1,759 cases concluded and claimants compensated. The funding for the IPC primarily comes from the sale of real estate to foreign investors as well as financial support from the ‘central bank’ of the North and the ‘government’.
How has the opening of Varosha impacted property claims and the Immovable Property Commission (IPC)?
The announcement of the opening of Varosha by Turkish Cypriot leadership in 2020 led to an increase in applications to the IPC as Greek Cypriot refugees saw potential opportunities. This surge in applications added pressure on the IPC, which has faced intermittent funding shortages. The recent decision to allocate £68 million (€79 million) for compensations aims to address claims processed until the end of 2020 and address the influx of applications following the Varosha announcement.
