360° Coverage : Cyprus government asks parliament to pass austerity budget

6 Updates
Cyprus government asks parliament to pass austerity budget
Photo Credit: , Getty Images

Cyprus government asks parliament to pass austerity budget

Oct 21 2013, 8:10am CDT | by IANS

Nicosia, Oct 21 (IANS) The Cypriot government Monday asked lawmakers to pass an austerity budget, the first since a bailout agreement with international lenders in March, which is expected to drive the economy of the eastern Mediterranean island deeper into recession.

Nicosia, Oct 21 — The Cypriot government Monday asked lawmakers to pass an austerity budget, the first since a bailout agreement with international lenders in March, which is expected to drive the...

Filed under: news

YouTube Videos

 
 
 

1 year ago

Cyprus government asks parliament to pass austerity budget

Oct 21 2013, 8:10am CDT | by IANS

Nicosia, Oct 21 (IANS) The Cypriot government Monday asked lawmakers to pass an austerity budget, the first since a bailout agreement with international lenders in March, which is expected to drive the economy of the eastern Mediterranean island deeper into recession.

Nicosia, Oct 21 — The Cypriot government Monday asked lawmakers to pass an austerity budget, the first since a bailout agreement with international lenders in March, which is expected to drive the economy of the eastern Mediterranean island deeper into recession.

Cyprus concluded a 10-billion-euro ($13.7 billion) bailout deal with the Eurogroup and the International Monetary Fund (IMF) at the beginning of this year, but was forced to use depositors' money to recapitalise its largest bank and wind down its second largest lender in return, Xinua reported.

The Eurogroup has since modelled its official policy for salvaging banks on the Cyprus precedent.

Cyprus's Finance Minister Haris Georgiades told the parliamentary finance committee, which started a detailed examination of next year's budget, that the 2014 budget takes into account further cuts in public sector salaries and pensions amounting to 3 percent, on top of more cuts of over 15 percent already in force, and also further hikes in the value added tax and consumer levies on fuel.

"(The year) 2014 will be the most difficult year of the memorandum (of understanding) as all economic problems will peak," he said.

Unemployment is expected to further rise to 19.5 percent next year, up from its current 17-percent level and just below 12 percent in 2012.

As a result of an expected drop in government income from taxation, the budget's revenue was cut back by 1.3 percent to 6.638 billion euros and the expenditure was brought down by 2 percent to 7.565 billion euros.

A deficit of 6.3 percent - just below one billion euros - will be financed with loan money from the Eurogroup and the IMF as Cyprus was shut out of international markets since mid-2011.

Georgiades said Cyprus has already drawn 47 percent of its 10-billion-euro bailout limit, which amounts to nearly two-thirds of its annual economy.

"The economy has to be able to return to international markets for financing by 2016 when the 10 billion euros provided by the adjustment program will be exhausted," Georgiades warned.

He said that Cyprus's foreign debt will peak at 123 percent of its GDP at the end of 2015, but it should be able to return to growth and a budgetary primary surplus by the end of that year.

Central Bank of Cyprus Governor Panicos Demetriades also told the lawmakers that the restructured banking sector will face further problems as a result of an expected increase in non-performing loans, a rise in unemployment and a reduction in household incomes and business profitability.

However, he said the banks have been sufficiently recapitalised and should be able to absorb the shock and gradually rebound.

Demetriades, who is faced with the prospect of an action by the government in the High Court to have him removed for actions and omissions damaging the economy, said the government's budget measures are moving in the right direction.

IANS

Source: IANS

 
Update
6

4 weeks ago

 
Update
5

4 weeks ago

Algeria: Cypriot FM Starts Three-Day Visit to Algeria

Oct 23 2014 12:11pm CDT | Source: AllAfrica.com

[Algerie Presse Service]Algiers -Cypriot Foreign Minister Ioannis Kasoulides arrived Wednesday in Algiers for a three-day official visit, at the invitation of his counterpart Ramtane Lamamra, said the Min ...
Source: AllAfrica.com   Full article at: AllAfrica.com
 

 
Update
4

5 weeks ago

Turkey and Cyprus Conflict Brews as Both Square Up Over Offshore Gas Resources

Oct 22 2014 7:27am CDT | Source: IBTimes World

Turkey vows to continue exploration off Cyprus despite international ...
Source: IBTimes World   Full article at: IBTimes World
 

 
Update
3

5 weeks ago

REPORT: 11 Banks Are About To Fail Europe's Biggest Ever Stress Tests

Oct 22 2014 3:49am CDT | Source: Business Insider

Spanish news wire EFE says that that at least 11 of the 130 banks the European Central Bank is now in charge of testing have failed their reviews. That's across six countries.  Three of the banks are Greek, three are Italian, Two are Austrian, one is in Cyprus, one is Belgian and one is Portuguese, according to the report. It definitely looks like there was a market reaction: here's the euro falling against ...
Source: Business Insider   Full article at: Business Insider
 

 
Update
2

8 weeks ago

How Bosnia is helping Cyprus find peace

Sep 30 2014 6:07pm CDT | Source: BBC News

How Bosnia is helping Cyprus find peac ...
Source: BBC News   Full article at: BBC News
 

 

Don't miss ...

 

blog comments powered by Disqus

Latest stories

The Black Friday 2014 Sales You can Shop Today 11/26
The Black Friday 2014 Sales You can Shop Today 11/26
Over 20 Black Friday 2014 sales are already launched. Get the deals early to get your head free for the hard to get Black Friday deals to be released on Thanksgiving Day.
 
 
Pakistan blocks three Saarc connectivity pacts; Modi, Sharif avoid meeting (Roundup)
Kathmandu, Nov 26 (IANS) Pakistan Wednesday played spoilsport by blocking three major Saarc connectivity projects initiated by India, even as Indian Prime Minister Narendra Modi conspicuously avoided meeting his Pakistani counterpart Nawaz Sharif while he met five other South Asian leaders here.
 
 
One-third of Libyans suffer mental health problems: Report
Tripoli, Nov 26 (IANS) Human rights violations in Libya have left nearly a third of the population suffering from mental health problems, according to a new report.
 
 
1.7 kg of drugs found in Iranian's stomach
Tehran, Nov 26 (IANS) Narcotics weighing 1.7 kg have been found in the stomach of a 20-year-old man in Iran's northeastern Khorasan Razavi province, police said.
 
 
 

Latest from the Network

The Black Friday 2014 Sales You can Shop Today 11/26
While most Black Friday 2014 ads state that Black Friday 2014 sales start on Thanksgiving Day, we are already seeing more than 20 Black Friday sales that are live online and even several that launched in stores. The...
Read more on Celebrity Balla
 
Tori Spelling wants to display breast implants
Tori Spelling wants to get her breast implants removed and display them in a glass dome on her wall. The 41-year-old reality TV star is keen to have her fake boobs taken out because they have ''expired and recalled''...
Read more on Celebrity Balla
 
Prince leaves social media
Prince has removed himself from social media. The 'Little Red Corvette' hitmaker has deleted his Instagram, Twitter and Facebook accounts and removed his work from YouTube and Soundcloud, just a year after joining the...
Read more on Celebrity Balla
 
Party-pooper Pharrell Williams
Pharrell Williams says asking him if he wants to go out partying is like asking a McDonalds worker ''if they want chicken nuggets for dinner''. Despite being a successful singer, the 41-year-old star insists he's not a...
Read more on Celebrity Balla
 
43 IS militants killed in clashes with Iraqi Kurds
Mosul (Iraq), Nov 26 (IANS/EFE) At least 43 members of the Islamic State (IS) Sunni radical group were killed in clashes with Peshmerga Kurdish troops near the strategic Mosul Dam near the northern Iraqi city by that...
Read more on Politics Balla
 
Five soldiers killed in Yemen Al Qaeda attack
Sanaa, Nov 26 (IANS) Five soldiers were killed in a massive attack by suspected Al Qaeda miltants against a Yemeni military base in the southeastern province of Shabwa Wednesday, a police source said. The source told...
Read more on Politics Balla
 
Pakistan blocks three Saarc connectivity pacts; Modi, Sharif avoid meeting (Roundup)
Kathmandu, Nov 26 (IANS) Pakistan Wednesday played spoilsport by blocking three major Saarc connectivity projects initiated by India, even as Indian Prime Minister Narendra Modi conspicuously avoided meeting his...
Read more on Politics Balla
 
IS pamphlets distributed in Pakistan
Islamabad, Nov 26 (IANS) Unidentified people have distributed pamphlets of the Islamic State (IS) Sunni radical group in Pakistan's South Waziristan tribal region, residents who have seen the pamphlets said Wednesday...
Read more on Politics Balla
 
Three policemen shot dead in Egypt's Sinai
Cairo, Nov 26 (IANS) A police officer and two recruits were shot dead Wednesday by unidentified gunmen in Arish city in North Sinai province, a security source told Xinhua. "The militants set an ambush for a police...
Read more on Politics Balla
 
Ferguson burns as racial protests spread across US
Washington, Nov 26 (IANS) As night fell, Missouri state in midwestern United States deployed more security forces to quell violence in Ferguson after a grand jury failed to indict a white police officer in the August...
Read more on Politics Balla