Off the wire
• Kenyan football crisis intensifies with parallel leagues  • Africa Focus: UN chief pledges solidarity with African leaders in combating terrorism, Ebola  • Kenya's Jeptoo to serve two-year ban, missing Rio Olympics  • ROUNDUP: Lithuania's GDP grows by nearly 3 pct in 2014, to face challenges in 2015  • Eighth round of TTIP negotiations to kick off in early Feb.  • U.S. stocks slump on disappointing GDP data  • Saudi Arabia reports 2 new MERS cases  • Roundup: Death toll rises to 33 in Egypt's Sinai attacks  • UNHCR urges more efforts to tackle Greece's asylum challenges  • Roundup: U.S. economy slows to 2.6 percent in Q4 despite strong personal spending  
You are here: 　 Home

Creditors says to put on ice economic review report on Cyprus

Xinhua, January 31, 2015 Adjust font size:

International lenders have notified Cyprus that they will put on ice a report on their latest review of its progress in implementing an economic adjustment program, following a further suspension of foreclosures legislation by parliament, Finance Minister Haris Georgiades said on Friday.

"The review is still going on but it will not be concluded as their report will be put on hold," Georgiades said.

Technocrats representing international lenders are mid-way in surveying the Cypriot economy and troika leaders were scheduled to arrive in Cyprus next week to finalize it.

But there is uncertainty about developments after the rebellious Cypriot parliament in which anti-austerity opposition parties have a majority of seats voted on Thursday night to extend by a month the suspension of foreclosures legislation.

The move is aimed at putting leverage on the government to speed up introduction of legislation to protect small debtors against foreclosures on their primary residence.

However, Georgiades said that the end result of the parliament's action is to shut Cyprus out of the European Central Bank program to pump new money into the economies of Eurozone countries by purchasing sovereign debt.

Cyprus's share in the program could be up to 120 million euros per month until September, 2016.

Georgiades also said the move will derail Cyprus's plan to return to international markets from which it was shut out since mid-2011 and could undermine prospects to end a 4-year long recession.

Cyprus was bailed out by the Eurogroup and the International Monetary Fund in a 10-billion-euro loan agreement, which also involved the downsizing and restructuring of the eastern Mediterranean island's banking system.

But Georgiades said the Cypriot government is fully committed to implementing an economic adjustment program that involves streamlining the public administration and extensive privatization of state-owned enterprises.

He added that Cyprus's economic policies will not be changed after voters elected a leftist anti-austerity government in fellow bailed-out Greece, which is Cyprus's closest ally and supporter.

"We have different approaches to issues of economic policy," said Georgiades.

The government spokesman said new Greek Prime Minister Alexis Tsipras will pay a one-day visit to Cyprus on Monday, his first foreign visit since taking office to discuss joint interest issues, including the economy.

"Each country makes its own decisions and moves based on its strategic interests," the spokesman said. Enditem