Cyprus President Demetris Christofias on Sunday blamed the island's economic troubles on neighbouring Greece's woes and insisted that reforms by his government would check a growing public deficit. "The economy of Cyprus continues to have healthy foundations despite the problems, distortions and inequalities accumulated over the years," the Communist politician told To Vima weekly in an interview. Cyprus takes over the European Union's rotating presidency on July 1. Estimates are that it needs around 4.0 billion euros to prop up its banks and help narrow the budget deficit, which widened last year to double the EU ceiling of three percent of gross domestic product (GDP). "Cyprus is not facing the prospect of entering (a rescue) mechanism because of the fiscal state of the economy but because of the need to recapitalise Cypriot banks which have important exposure to the Greek economy," Christofias said. "In every downgrade of the Cypriot economy the exposure of our banks to Greece is portrayed as the main cause," he said. Christofias said reforms already undertaken would bring the deficit to "around 3.0 percent" from 6.5 percent in 2011, with the aim of trimming it further to "as close to 2.5 percent as possible." Cyprus will ask Russia for a loan of up to 5.0 billion euros ($6.4 billion) this week and then request aid from eurozone partners for its ailing banks, an EU diplomat said Wednesday. The crisis-hit Mediterranean island will "first try to get a bilateral loan from Russia," said the diplomat, speaking on condition of anonymity. Cyprus would then probably request eurozone aid for its banks next week along the lines of an offer made to Spain, he said. The government is already committed to underwriting a 1.8 billion euro capital issue for the island's worst exposed institution -- Marfin Popular Bank -- to recapitalise against the Greek debt crisis.
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor