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Viewing cable 09NICOSIA363, NORTH CYPRUS' ECONOMY "MINISTER" - YOUNG AND EAGER

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Reference ID Created Released Classification Origin
09NICOSIA363 2009-06-04 05:45 2011-08-26 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Nicosia
VZCZCXRO0008
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV RUEHSR
DE RUEHNC #0363 1550545
ZNR UUUUU ZZH
P 040545Z JUN 09
FM AMEMBASSY NICOSIA
TO RUEHC/SECSTATE WASHDC PRIORITY 9907
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 5488
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
UNCLAS NICOSIA 000363 
 
SENSITIVE 
SIPDIS 
 
TREASURY FOR OFFICE OF EASTERN EUROPE 
 
E.O. 12958: N/A 
TAGS: PREL ETRD EFIN CY
SUBJECT: NORTH CYPRUS' ECONOMY "MINISTER" - YOUNG AND EAGER 
 
1. (SBU) Sunat Atun, the recently appointed "Minister of 
Economy" in the "TRNC government" told us on May 29 that he 
intends to intensify efforts in north Cyprus to combat money 
laundering and welcomes continued cooperation with the EU and 
USG towards this end. Atun said "we want to develop our 
financial sector to become globally competitive, and we can 
only do this if we have a proper regulatory and enforcement 
regime." The Turkish Cypriot (T/C) Financial Intelligence 
Unit, MEBEB, is now under the "Ministry of Economy" instead 
of the "Ministry of Finance" as was the case under the 
previous "government." This is reportedly because "Prime 
Minster" Dervis Eroglu felt that that Finance had too many 
responsibilities and Economy not enough. 
 
2.  (SBU) Atun confirmed that the new "government" is living 
hand-to-mouth financially, is more than 8 months behind on 
payments to many private sector suppliers, and can only hope 
to meet payroll and transfer payments via additional 
financial help from Turkey (On May 30, the press reported 
that Turkey would give north Cyprus another 60 million 
Turkish Lira - US$39 million -  over and above the formal 
bilateral assistance program, in order to plug the May 
deficit.) He is working on a "business plan" for 
restructuring the north's economy; a Turkish demand in return 
for fully funding the north's budget deficit for the year. 
Keys to the restructuring plan, Atun said, will be 
privatization of some state-owned companies, an end to all 
public sector overtime, and no increase in public sector 
wages until the economy is back on its feet. When asked if he 
was worried about the reaction of the civil servants unions 
to this plan, Atun responded that the "government" had no 
choice and it would be best to undertake this difficult 
political track early in the new "administration's" tenure. 
 
3. (SBU) Comment and bio data: The 35 year-old Atun was in 
the family shipping business before being tapped to become 
the youngest member of "cabinet" following his first election 
to "parliament" in April.  Aside from managing a shipping 
company, he served as chairman of the Young Businessman's 
Association since 2006, where he did little to raise the 
profile of the organization. Having received economics and 
shipping management degrees in the UK, Atun tried to 
professionalize the management style of his company and 
reportedly succeeded to the extent that non-family members 
are now in charge and Atun has taken a leave of absence from 
the firm (this is in contrast to almost all other 
parliamentarians on both sides of Cyprus who typically 
maintain their outside financial interests while serving as 
MP). With no previous government experience and a great deal 
of energy and enthusiasm, we believe Atun will be an 
attentive interlocutor in our continuing efforts to encourage 
updating the north's commercial legislation, improve its 
anti-money laundering and counter-terrorist capabilities, and 
move to restructure the economy towards sustainability. 
Urbancic