Troika evaluation of Cypriot Economy ends successfully
The seventh evaluation of Troika ended with a good result, Finance Minister Harris Georgiades said.
The FM said that the correction for an upward evaluation were important for the development rhythm of 2015.
Last spring’s assessment mentioned the chance of a 0.5% recession, which now formed the basis of the new data showing a growth of the same percentage.
Harris Georgiades mentioned that in this light the impression that the new program would lead to a deeper recession is false. The opposite is true, the Finance Minister said, as proven and reconfirmed by the hard work and sacrifices of our people. It shows the stability and trust that has been re-established and the right perquisites for recovery have been formed.
The financial situation is good, the FM added, and it is not necessary to take on new measures. As he said this fact does not give even the littlest bit of room for a lightening. The prudent fiscal policy will continue as he said adding that the combination of fiscal consolidation has been achieved by a return to positive growth, the gradual correction of the real economy is perhaps the most important success of the Cypriot program. Georgiades said that these prudent activities will continue to promote reforms and consolidation.
The Finance Minister added that not they are focusing on promoting important restructuring changes.
All the weight on reforms
Before the end of August laws for reforms in the public sector that deal with pay and pay raises in the future will appear in front of the Cabinet for confirmation. The reforms will be structured in a way to not create a huge weight on the economy and the private sector.
Privatisation of CYTA
By the end of August the privatisation methods for CYTA will be placed in front of the cabinet. It will allow for the hiring of a strategic co-operative investor into the public telecommunications company. The Finance Minister described CYTA as an important organisation on the island and for the economy. The company is in a sector with rapid technological advancement and we must liberate from what the hold-bound structures and processes of the past, Georgiades said. As the Finance Minister said, this will happen with the attraction of a strategic partner investor.
The most important steps next are the passing of the title deeds laws by the House of Representatives. The draft bill will be put to a vote on 3 September. This law, according the Finance Minister, will be an important reform that will make the functioning of buying property easier.
Packaging and sale of loans
The draft bill that deals with the sale of loans to the banking institutions and third parties is set to appear in front of the cabinet at their next meeting for judgment. It will appear in front of the House of Representatives by the end of September. Georgiades said that the law will secure right for loan receivers that will not be affected.
Ge.S.Y (Public Health Scheme)
The important changes that need to be promoted include the governing and financing autonomy of public hospitals. The Finance Minister cleared up that the goal is unchanged and by the end of the year the specific laws need to be promoted and passed. Georgiades added there was major progress and the issue, while at the same time praising the outgoing health minister Philippos Pastalis. Georgiades expressed his certainty that the attempt will also be important and finished by the new Health Minister George Pamporides. Georgiades said that the public health scheme is an important priority of the government’s policy.