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

4 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

 
 
 

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
4

7 weeks ago

 
Update
3

8 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 Ministry of Foreign Affa ...
Source: AllAfrica.com   Full article at: AllAfrica.com
 

 
Update
2

8 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 con ...
Source: IBTimes World   Full article at: IBTimes World
 

 
Update
1

8 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 the dollar just as the report broke at 3:46 a.m. ET. Full results on the s ...
Source: Business Insider   Full article at: Business Insider
 

 
 

blog comments powered by Disqus

Latest stories

Russia allows buffalo meat imports from India
Moscow, Dec 4 (IANS/TASS) Russia has allowed imports of buffalo meat from India, the country's veterinary regulator said Thursday.
 
 
New guidelines for prostate cancer testing
Melbourne, Dec 4 (IANS) Prostate cancer checks in Australia are set to improve after cancer agencies and health experts reached an agreement on new testing guidelines at the World Cancer Congress (WCC) currently being held in Melbourne.
 
 
Australian researcher discovers first artwork by early human
Sydney, Dec 4 (IANS) An Australian researcher has discovered what is believed to be the first artwork created by a human.
 
 
Insects compete with rats to clear garbage
New York, Dec 4 (IANS) Insects play a very important role in cleaning up cities and they compete with other pests like rats and pigeons in their endeavour, a study has said.
 
 
 

Latest from the Network

Australian researcher discovers first artwork by early human
Sydney, Dec 4 (IANS) An Australian researcher has discovered what is believed to be the first artwork created by a human. The simple zigzag pattern found on a fossilized shell from the Indonesian island of Java has...
Read more on Celebrity Balla
 
Insects compete with rats to clear garbage
New York, Dec 4 (IANS) Insects play a very important role in cleaning up cities and they compete with other pests like rats and pigeons in their endeavour, a study has said. Scientists sampled arthropods - such as...
Read more on Business Balla
 
School headmaster shot dead in Pakistan
Islamabad, Dec 4 (IANS) Unidentified gunmen Thursday killed the headmaster of a private school in Pakistan's Balochistan province. Police officials said the armed men opened fire at the vehicle of Zahid Ali,...
Read more on Politics Balla
 
Four more bodies recovered from sunken South Korean ship
Seoul, Dec 4 (IANS) Four more bodies were recovered Thursday from a sunken South Korean fishing ship in the Bering Sea, the foreign ministry here said. This increased the toll to 16, including six South Koreans and 10...
Read more on Politics Balla
 
Lesbian couple asked to desist in London restaurant
London, Dec 4 (IANS) A lesbian couple in a London restaurant was asked to desist by a staff member, who asked them to "stop what you are doing". Lydia Cawson, 29, said that she and her girlfriend were asked by a staff...
Read more on Politics Balla
 
Oxford Dictionaries to add 1,000 new words
London, Dec 4 (IANS) 'Mamil' (middle-aged man in Lycra), 'silvertail' (a person who is socially prominent or who displays social aspirations) and 'crony capitalism' are among the 1,000 new words to be added to...
Read more on Celebrity Balla
 
Oceans play key role in global 'warming hiatus'
London, Dec 4 (IANS) Increased heat uptake across three oceans - North Atlantic, the Southern Ocean and Equatorial Pacific Ocean - is the likely cause of the 'warming hiatus' -- the current decade-long slowdown in...
Read more on Politics Balla
 
Novel imaging to identify if TB drugs are working
Washington, Dec 4 (IANS) Tuberculosis patients who are not cured of the infection can develop multi-drug resistant TB and have to take as many as six drugs for two years. Now, researchers at University of Pittsburgh...
Read more on Business Balla
 
PM makes first appointment to High Court of Australia
Canberra, Dec 4 (IANS) Prime Minister Tony Abbott's government Thursday appointed former Victorian Supreme Court judge Geoffrey Nettle as the next Justice of the High Court of Australia. Attorney General George...
Read more on Politics Balla
 
18 suspected militants killed in Pakistan airstrikes
Islamabad, Dec 4 (IANS) At least 18 suspected militants were killed Thursday in airstrikes conducted by Pakistan Air Force fighter jets in North Waziristan. According to officials, the airstrikes were conducted in...
Read more on Politics Balla