Brussels, 25/11/2013 (Agence Europe) - On Monday 25 November, the troika of lenders (European Commission, European Central Bank and International Monetary Fund) praised the work by the Cypriote authorities and pointed out the challenges that remain for the Cypriot economy.
Speaking at a conference organised by The Economist in Nicosia, IMF representative Delia Velculescu said: “Given the ambitious adjustment that is already underway, additional measures are only envisaged in the outer years and these are needed to place public debt on a sustained downward path”. She said the most difficult decisions had already been taken. On behalf of the European Commission, Maarten Vermey said that there had been delays in implementing some measures, such as the privatisation process, and he called for speedier implementation before the next tranche of aid is disbursed in December. ECB representative Isabel von Köppen Mertes said that non-performing loans were a major problem that needed to be dealt with urgently. The trio acknowledged positive outcomes in implementation of the programme, particularly on the budget front.
Cypriot Finance Minister Harris Georgiades expressed doubts: “For instance, I am not happy with all the taxes that were included in the original MoU. Once agreed and imposed it is not so easy to go back and reverse them. But, at the very least, the emphasis of this government, when it comes to fiscal consolidation, is and will be on the expenditure side. We shall not be raising taxes further and this is a clear message which I would like to repeat”. He added that decisions would be taken shortly on the privatisation process and he will hold a meeting with Euro Commission Olli Rehn in this connection in Brussels on Wednesday. The Cypriot president will also be travelling to Brussels. (EL/transl.fl)