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Roundup: Cyprus keeping close watch on Greek dev't after SYRIZA electoral victory

Xinhua, January 26, 2015 Adjust font size:

Cyprus' government said on Monday it would be keeping a close watch on developments in the fellow bailed-out Mediterranean country of Greece following Sunday's electoral result.

Leftist SYRIZA party achieved a sweeping victory on promises by its charismatic leader Alexis Tsipras that he would scrap the country's strict austerity program.

Both Greece and Cyprus are among the Eurogroup countries still applying economic adjustment programs as a result of the financial crisis.

"The government will be following very closely developments in Greece," said Cypriot government spokesman Nicos Christodoulides commenting on Tsipras' promise to do away with an economic adjustment program dictated by the Eurogroup and the International Monetary Fund and negotiate a reduction of the sovereign debt.

But Christodoulides made it quite clear that Cyprus would not act in unison with the Greek government in dealing with international lenders.

"Greece's case is different from that of Cyprus," said Christodoulides.

However, he said the government was looking forward to a visit in Cyprus by SYRIZA leader Tsipras in his capacity as new prime minister to discuss issues of mutual interest.

Ahead of the elections, Tsipras said his first foreign visit as prime minister would be to the eastern Mediterranean island.

Center-right Cypriot president Nicos Anastasiades sent a congratulatory message to the incoming Greek prime minister on Monday saying he was looking forward to Tsipras' visit in Cyprus to discuss both issues of national importance, and the economic objectives of their respective countries.

Christodoulides hoped Tsipras would be able to fulfill his promises to the Greek people, though he said it was common knowledge what it is like to deal with the troika, Greece's and Cyprus' international lenders.

Greece and Cyprus have the same lenders but relations with them have progressed quite differently.

Though Greece was bailed out a year earlier than Cyprus, it has lagged behind in applying its adjustment program and the Eurogroup meeting in Brussels on Monday will possibly discuss affording Athens a fresh extension.

Greece's economic woes center around a huge sovereign debt amounting to 175 percent of gross domestic product (GDP) and bad public finances which led to deep cuts in salaries and pensions.

Cyprus, however, which was bailed-out two years ago, has surpassed targets set by its lenders. Its problems mainly stem from a crippled banking system which is faced with a mount of non-performing loans representing about 50 percent of total loans. Endit