1st LD Writethru: Cyprus gov't urges Greece to strike deal with its lenders

Cypriot Finance Minister Harris Georgiades called on Greece on Tuesday to close the gap with its international lenders and strike a deal that will assure it of continued financing.

His call came after Greece turned down a proposal presented at a Eurogroup finance ministers meeting in Brussels on Monday night extending its international bailout program.

"The Greek government knows the realities and it has to make its decisions. The onus is on the Greek government now and if Athens wants to extend its program it must request it now," Georgiades told Cypriot state radio in a telephone interview from Brussels.

Asked whether he supported the Greek side at the Eurogroup meeting, Georgiades said that Greek problem was not the lack of support by Cyprus.

"Cyprus' support towards Greece is given. But frankly there was not a clear demand by Greece which I could support. It only asked for more time to present its program," Georgiades said.

The Cypriot government is run by the Greek Cypriots, who make up the majority of the population.

Cyprus and Greece maintain closed political and cultural ties and they are also the only Eurogroup countries under a bailout program.

Cyprus is currently in conflict with international lenders after opposition parties used their majority in parliament to pass a law blocking repossessions of properties offered as collateral for bad loans.

Georgiades said that the message he gave to international lenders at the Eurogroup meeting is that the Cypriot government is committed to applying a program to streamline its economy.

"Our lenders urged us to proceed without any delay with legislation allowing repossessions of mortgaged properties so as to normalize banking operations. The message I gave to them is that Cyprus will continue its hard effort to fully apply its program," he added. Endit