Roundup: Cyprus not need second bailout program: FinMin

Cyprus will not need a second bailout when its current financial assistance program will expire next March, Finance Minister Harris Georgiades said on Thursday.

"The government has created the conditions for the successful completion of its current bailout program and will not need further financial assistance," Georgiades told the state radio in an interview.

But he stressed that all preconditions for the return of Cyprus to international markets must be met by March so it would not have to rely on a support program.

Cyprus was saved from a meltdown of its economy with a 10-billion-euro (10.9 billion U.S. dollars) bailout program offered by the Eurogroup and the International Monetary Fund (IMF) in March 2013.

Georgiades said there are still two important steps to take to make sure of becoming financially independent.

One is to proceed with the privatization of telecommunications and ports and the second one is to reform its public administration.

The process of selling port operations to private business has started with the invitation of expression of interest.

It was also announced earlier this week that the government and the public servants union have reached agreement on the reform of the public service, thus removing a possible obstacle.

But opposition is expected from parties in parliament which garner a majority of votes when legislation for the privatization of the state-owned Cyprus Telecommunications Authority (CYTA) will come up for discussion, probably next year.

Technocrats representing the European Commission, the European Central Bank and the IMF are currently conducting their seventh review of the Cypriot economy, with two more to go, before the economic adjustment program expires.

With its successful completion Cyprus will receive 500 million euros, which will go towards repaying a maturing bond issue.

Georgiades was invited to comment on the latest bailout deal between Greece and the Eurogroup.

He said Cyprus is willing to pay its part for making the Greek debt sustainable, though he had personal reservations about aspects of the program agreed on Monday.

"I am particularly worried about additional taxes Greece was forced to introduce. For an economy which is in recession the worst thing to do is to burden consumers and businesses with more taxes," Georgiades said.

He added that he would advise Greece to rather focus on reforms of the public administration which would save money and make the public service more effective.

Georgiades said he would take part in a Eurogroup teleconference on Thursday to decide on a bridge financing program for Greece.

He said negotiations on the new bailout program will take some time to conclude while the country was in dire need of urgent financial support.

"Failure to find ways to immediately release money to Greece would push the country into bankruptcy," Georgiades warned. Endit