The resignation comes a day after People's Party announced its withdrawal from the coalition government in Turkish Republic of Northern Cyprus.
The coalition government in the Turkish Republic of Northern Cyprus (TRNC) resigned on Thursday, according to local media.
Premier and coalition leader Tufan Erhurman submitted the government's resignation to President Mustafa Akinci after Minister of Finance Serdar Denktas resigned and the People's Party announced its withdrawal on Wednesday, Turkish Agency Cyprus reported.
Akinci, who accepted the resignation, asked Erhurman to continue as prime minister until a new government was formed.
Deputy Prime Minister and Foreign Minister Kudret Ozersay, who is HP leader as well, announced his party's decision to withdraw from the coalition on Wednesday.
At a news conference, Ozersay said the party members will decide on whether they will continue as an opposition party or make negotiations to form a government.
He said the reason behind their withdrawal was the property rentals of the ministry of finance and "confidence crisis".
Ozersay added he does not exclude the possibility of snap elections.
In 1974, following a coup aiming at Cyprus’ annexation by Greece, Ankara had to intervene as a guarantor power. The TRNC was founded in 1983.
The decades since have seen several attempts to resolve the dispute, all ending in failure. The latest one, held with the participation of the guarantor countries – Turkey, Greece, and the UK – ended in 2017 in Switzerland.