Now Reading:

Cyprus starts working week out of bailout


Cyprus starts working week out of bailout

Cyprus has kicked off the working week standing on its own two feet.

Its EU bailout has officially finished, as it bounces back from financial turmoil that tore through the heart of its banking sector.

It did not require the last quarter of a 10 billion euro loan package.

But will austerity stay?

“Austerity measures become necessary based on the situation of public finances, whether a country is in a programme or not,” Finance Minister Charis Georgiadis told euronews.

“That is why, from the very beginning, we were very careful and made sure that Cyprus’ public finances were set on a sustainable path.”

Cyprus’ bailout was partly funded by the IMF, which is facing Wikileaks claims that senior Fund officials have been discussing a possible debt haircut for Greece.

The IMF has denied that Athens would be pushed closer to a default as a negotiating tactic on a new bailout deal.

“Every state, through its own actions and initiatives to consolidate its economy, should avert any possibility, should not allow any room for anybody to blackmail or apply pressure,” said Georgiadis.

Greece is reviewing its fiscal and reform progress with its EU and IMF lenders. It aims to unlock a fresh tranche of about five billion euros, needed to pay off state arrears and ECB and IMF maturing debt.


Tap to find out