Turkish Cypriot coalition govt to resign

The coalition government of the Turkish Republic of Northern Cyprus (TRNC) has collapsed, with Prime Minister Omer Kalyoncu set to officially hand in his government's resignation to President Mustafa Akinci on Tuesday morning.

The collapse was confirmed by Mehmet Ali Talat, the TRNC's former president and the head of the coalition's larger partner, the left-wing Republican Turkish Party (CTP).

Right-wing coalition partner National Unity Party (UBP) pulled out of the government after expressing dismay over the financially struggling country's economic policy.

UBP chairman Huseyin Ozgurgun complained that his party did not accept a decision to pay civil servants salaries in instalments and was also unhappy with the water distribution on the parched territory.

"Having come to a point where there is no longer a possibility and capacity to serve our people, it is not our goal to form a government or share the office," Ozgurgun said.

The TRNC government was unable to pay public sector staff their wages in March due to a number of economic problems, largely stemming from its isolation from the global economy.

Recognised only by Turkey, upon whom the TRNC is dependent for financial assistance, the country has been under embargoes since it declared its independence from the internationally-recognised Republic of Cyprus in 1983.

The split between the TRNC's two biggest parties, which combined held 38 of the 50 seats in the Turkish Cypriot parliament, brings an end to just 10 months of unsteady cooperation between them.

Talat indicated late on Monday that the CTP, which holds 20 seats in the parliament, was in discussions with all parties in a bid to form a new government.

It is possible that the UBP could form a government along with independents and the Democratic Party of Serdar Denktas, the son of the TRNC's first president Rauf Denktas who died in 2012.