Georgiades: Reforms to continue
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.