Ge­or­giades: Re­forms to con­tinue

Financial Mirror (Cyprus) - - FRONT PAGE -

The up­dated me­moran­dum of un­der­stand­ing with the Troika of in­ter­na­tional lenders (IMF, EC, ECB) in­cludes a se­ries of ma­jor re­forms and struc­tural changes, Fi­nance Min­is­ter Har­ris Ge­or­giades said, adding that these changes will help the econ­omy re­gain con­fi­dence.

Af­ter meet­ing with Euro­pean Party pres­i­dent Demetris Syl­louris to hand him the re­vised MoU and to brief him about govern­ment plans, Ge­or­giades said that the doc­u­ment in­cludes mainly a se­ries of ma­jor re­forms, struc­tural changes that touch the en­tire range of the state and the econ­omy.

“Such mea­sures, such changes are the main vol­ume of the eco­nomic ad­just­ment pro­gramme ahead of us and that is where we should fo­cus our at­ten­tion, be­cause it is through these re­forms and struc­tural changes that we will fi­nally re­gain con­fi­dence, mainly in­ter­na­tional con­fi­dence, for the Cypriot econ­omy,” he said.

Ge­orgeiades said that noth­ing had changed in the re­vised me­moran­dum on the is­sue of property re­pos­ses­sions, adding that the obli­ga­tions un­der the ad­just­ment pro­gramme haven’t changed.

Asked about the Co­op­er­a­tive sec­tor, Georgiadis said that the Coops had recorded tremen­dous progress dur­ing the last few months, not­ing that the merg­ing of 93 units to 18 and the ap­point­ment of new ad­min­is­tra­tions and di­rec­torates at cen­tral and lo­cal level, was a very dif­fi­cult task.

“The Co­op­er­a­tive Bank is cur­rently cap­i­tal­ided at 14% and has liq­uid­ity mar­gins of 2.4 bln eu­ros. So the sec­tor is per­fectly ca­pa­ble to han­dle or cope with the mis­takes of the past and to work in a man­ner that is use­ful and help­ful to the so­ci­ety and the econ­omy,” he said.

The min­is­ter also re­buffed claims that there is a con­flict be­tween the govern­ment and the rul­ing party Demo­cratic Rally (DISY) on the is­sue. He re­it­er­ated that the re­spon­si­bil­ity for the ac­tions of the Co­op­er­a­tive Bank does not be­long to any party, not even to the govern­ment but be­longs only to the board and the man­age­ment of the bank.

He added that even the state, which is the ma­jor share­holder of the Coops fol­low­ing a 1.5 bln euro re­cap­i­tal­i­sa­tion, is bound by spe­cific agree­ments to mon­i­tor the progress and the true re­turn of its in­vest­ment but to stay away from any in­volve­ment in mat­ters of func­tion­ing or struc­ture of the sec­tor.


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