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Extreme scenarios on the table

16/01/2013 14:30
The extreme scenarios for the banks are on the table, the MPs support in the aftermath of reports that Pimco’s report might not be finalized by January 18.

DISY Vice President, Averof Neophytou argued that accepting unrealistic amounts will be doubly punishable act by those who agreed the terms of reference with Pimco.

He stressed that if the debt is not sustainable Cyprus will be led in additional adventures and society in an even harsher austerity.

"The problems of the banks and cooperatives are known and responsibilities in the banking sector are severe. Unrealistic assumptions and scenarios are now on the table and unfortunately for Cyprus they have been adopted in Pimco’s report”, he said.

“The issue is to determine the actual needs based on realistic assumptions”.

“The acceptance of unrealistic amounts will be doubly punishable act on behalf of those who agreed the specific terms of reference with Pimco."

Finally, he noted that no one is entitled to gamble with the future of Cyprus, "neither external nor external consultants”.

On his part, AKEL MP, Yiannos Lamaris said that negotiations of the government and the Central Bank may have an effect on reducing the recapitalization amount of the banks.

“During the negotiation we hope to have the best possible result that creates obligations of our country that we had to adopt a debt direction which will ensure the prospect of exit from the crisis”.

He said that through the negotiation they will focus on facts and not an imaginary vision.

DIKO Vice President, Nicolas Papadopoulos argued that we should make every effort to limit the amount to the lowest possible level by changing the assumptions in extreme scenarios.

He appealed to the Central Bank Governor "to take initiative and to attend the meetings of the Steering Committee to convince of the need for diversification of assumptions in order to reduce the amount."

“I fear that if we are not convincing on this point, we will have to deal with negative reactions at the Eurogroup and the hostile behaviour by other countries and maybe we should start options such as additional privatization measures and other solutions that have been adopted in Greece, which would be disastrous for Cyprus”.

EDEK MP Nicos Nicolaides talked for vague and unclear information in relation to the reduction of the amount of the banking needs, stressing that there are margins for reducing the amount of €10 billion.

Green Party MP, Giorgos Perdikis stressed the need to give battle to take into account the baseline scenario of €6 - €8 billion so that the public debt is sustainable. “Even the scenario of €9 billion is towards the wrong direction”, he concluded.