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Of the Co-operative Central Banks, both the Greek and Turkish subsequently
provided long term credit and development loans through their locai Credit
Societies, present in almost every village. The Development Fund provided finance
to both Co-operative Organisations. After December 1963, cut off largely from the
Republic's Central Bank, the Cyprus Turkish Co-operative Central Bank (CTCCB)
received long term credit facilities from Turkey, both from the public and the
private sector. Isbank 21 provided the private sector support backed by aid from the
Turkish Central Bank.
Following the events of December 1963, many locai independent co-operative
societies ceased to function (becoming inactive - see Table 4.1). Düring and
immediately after the communal fighting, 90 villages had been displaced. In them
were 56 credit societies, 15 consumer co-operatives, and 2 multi-purpose coopératives,
a total of 73 independent co-operatives which became immediately
inactive. By 1965, continued sporadic violence and unbroken economic sanctions
meant that a total of 81 independent co-operatives were inactive: 61 credit Societies,
16 consumer societies and 4 multi-purpose societies 22 . Düring the years that
followed, particularly the difficult years of embargo and the flaring up of periodic
communal violence, further displacement and economic difficulties caused other cooperatives
to cease opérations. It must be noted, however, that the real blow to
Turkish-Cypriot co-operatives, as to their economy generally, occurred during and
immediately after the fighting of December 1963. Things only gradually began to
improve for independent co-operatives after 1970. Some new societies were created
and the first moves were made to rationalise the provision of independent cooperatives
by replacing or merging poorly performing, specialised, co-operatives
21 Tliis was only partly a private sector organisation the state owned a sizeable share holding
(minority holding) but the major share holding was held by the Turkish Republican Party. Interview
with Suleyman Kiryagdi, op. cit.
22 Interview with Mr Cafer Arseven, op. cit.
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