Cyprus Bailout | Impact of South’s Problems on North
A lot has been said about north Cyprus being potentially depressed by the south’s problems but that assumes that the south has contributed a great deal to the north in the first place. One contribution for sure has been those in the south crossing the border to gamble and shop, but there has also been movement in the other direction which might stop now. Cross border trade looks to be very confused while there are currency restrictions in the south, not the least because of the unavailability of cheap goods which the unembargoed south had access to. It could be now argued that the south is going through a financial embargo through the lack of cash to buy goods.
As long as the north’s government wakes from their deep slumber and tells the world that the south and north are different then there is a possibility that the unencumbered north could attract more visitors and even more trade. These are early days and, who knows, perhaps the EU will look with fresh eyes at the north and ease some of the restrictions to minimise the impact of the south’s problems. I won’t be holding my breath, however.
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