9 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

 
 
 

40 weeks 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
9

4 hours ago

Bank of Cyprus OKs €1 Billion Capital Increase

Jul 28 2014 3:17pm CDT | Source: WSJ.com: Europe Home

The board of directors at Bank of Cyprus, the island nation's biggest bank, approved a €1 billion capita ...
Source: WSJ.com: Europe Home   Full article at: WSJ.com: Europe Home
 

 
Update
8

3 days ago

DealBook: A Secret in Cyprus Stirs Resentment

Jul 24 2014 7:51pm CDT | Source: NewYorkTimes-Business Day

Two financial rivals disagreed over the capital needs of the banking sector of Cyprus in 2013, but only one analysis was mad ...
Source: NewYorkTimes-Business Day   Full article at: NewYorkTimes-Business Day
 

 
Update
7

1 week ago

VIDEO: Cyprus: Bridging the mistrust

Jul 19 2014 6:51pm CDT | Source: BBC News

Forty years ago on 20 July 1974 Turkish troops landed on Cyprus, in response to a Greek-led coup on the island. Now it's time for scars to heal, s ...
Source: BBC News   Full article at: BBC News
 

 
Update
6

5 weeks ago

Cyprus raises 750 mln euros in financial markets in 1st public bond issue since bailout

Jun 18 2014 10:59am CDT | Source: Canadian Business Online

NICOSIA, Cyprus – Cyprus has raised 750 million euros ($1.017 million) from international markets with its first public issue of bonds since last year’s international bailout saved it from bankruptcy. The finance ministry said Wednesday that an initial target of 500 million euros was oversubscribed four times. That allowed authorities to raise an extra 250 million euros through the five-year bonds, which carried a 4.75 per cent interest rate. ...
Source: Canadian Business Online   Full article at: Canadian Business Online
 

 
Update
5

5 weeks ago

Five-Year-Old Girl Drowns on Family Holiday in Cyprus

Jun 18 2014 6:35am CDT | Source: IBTimes UK

Child died on Monday afternoon at the Evalena Hotel in Protaras on the south east ...
Source: IBTimes UK   Full article at: IBTimes UK
 

 
Update
3

5 weeks ago

Cyprus Returns to Public Debt Markets

Jun 18 2014 3:41am CDT | Source: WSJ.com: Europe Home

Cyprus is set to complete its return to the public debt markets, just over a year since it needed a multi-billion-euro bailout to save ...
Source: WSJ.com: Europe Home   Full article at: WSJ.com: Europe Home
 

 
Update
2

6 weeks ago

Cyprus Hires Banks to Arrange Investor Meetings

Jun 10 2014 6:11am CDT | Source: WSJ.com: Europe Home

Cyprus has hired a clutch of banks to arrange investor meetings that could lead to its first public bond deal since last year's bailout ...
Source: WSJ.com: Europe Home   Full article at: WSJ.com: Europe Home
 

 
Update
1

7 weeks ago

In Portugal, Deflation More Than Just a Threat

Jun 5 2014 6:27pm CDT | Source: WSJ.com: Europe Home

Deflation poses a threat to the fragile recovery across the 18-nation euro zone. But it has already taken hold in Portugal, Greece, Cyp ...
Source: WSJ.com: Europe Home   Full article at: WSJ.com: Europe Home
 

 

Don't miss ...

 

blog comments powered by Disqus

Latest stories

Bangladeshi plane catches fire at Nepal airport, passengers safe
Kathmandu, July 28 (IANS) A Bangladeshi aircraft caught fire while landing at Kathmandu's Tribhuvan International Airport (TIA) Monday afternoon, officials said.
 
 
Shift work can worsen asthma, pneumonia
London, July 28 (IANS) A research has found that drugs widely used to treat lung diseases like asthma or pneumonia work better with the body clock.
 
 
Decoded: What triggers sexual arousal in you
New York, July 28 (IANS) Know why just looking at an attractive face stimulates sexual arousal? Well, it takes two to tango!
 
 
Turn your selfie into emoji with this app
New York, July 28 (IANS) Tired of seeing the same yellow-faced smileys? In an age of selfies, how can emojis be far behind?
 
 
 

Latest from the Network

Kutcher-Kunis to wed in July next year?
Los Angeles, July 29 (IANS) Actors Ashton Kutcher and Mila Kunis, who are getting ready to welcome their daughter, have begun to plan for their wedding. "The wedding will be next July. They want to focus on their...
Read more on Celebrity Balla
 
Lady Gaga portraits auctioned
New York, July 29 (IANS) Pop star Lady Gaga's "video portraits" raised over $1 million at an auction at Watermill Center here. Director Robert Wilson put on display "23 Video Portraits of Lady Gaga" series at his...
Read more on Celebrity Balla
 
Kim Kardashian followed by 'crazy driver'
Kim Kardashian claims a ''crazy driver'' followed her around Los Angeles today (07.28.14). The 'Keeping Up with the Kardashians' star hit back at rumors she was pulled over by police officers in Calabasas, California,...
Read more on Celebrity Balla
 
Elizabeth Banks is 'very genetically blessed'
Elizabeth Banks says she is ''very genetically blessed.'' The 'Hunger Games' actress, who has sons Felix, three, and Magnus, 20 months, with husband Max Handleman, insists she only recently realized she is attractive,...
Read more on Celebrity Balla
 
Courteney Cox receives engagement gifts
Johnny McDaid and Courteney Cox received several engagement presents in his native Northern Ireland. The newly-engaged couple were given complimentary souvenirs by excited fans in the city of Derry while exploring the...
Read more on Celebrity Balla
 
Ashton Kutcher and Mila Kunis to wed next July
Ashton Kutcher and Mila Kunis are planning to get married next July. The couple, who got engaged earlier this year and are expecting their first child, have reportedly set a date for their wedding next summer, as they...
Read more on Celebrity Balla
 
India at the 2014 Commonwealth Games Tuesday
Glasgow, July 29 (IANS) The following is the list of Indians who will be seen in action in the 2014 Commonwealth Games Tuesday. Schedule Badminton (Emirates Arena) Men's singles (Round of 64): R.M.V.Gurusaidutt vs...
Read more on Sport Balla
 
Indian medal winners at 2014 Commonwealth Games
Glasgow, July 29 (IANS) The following is the list of Indian medal winners at the 20th Commonwealth Games: Gold Sanjita Khumukchan: women's 48 kg weightlifting Sukhen Dey: men's 56 kg weightlifting Abhinav Bindra: men'...
Read more on Sport Balla
 
Hi-tech machine spews beer for fans mimicking Scot talk (CWG Diary)
Glasgow, July 29 (IANS) Fancy a free beer? Get talking in Scottish! A hi-tech water cooler that talks to visitors and dispenses beer is doing the rounds of the city assessing one's accent and rewarding the best with a...
Read more on Sport Balla