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Two “no’s” to the troika

07/03/2013 14:00
The Cypriot government is not going to accept and does not intend to sign a loan agreement if the new terms of the heads of the troika to increase corporate tax or to proceed with a deposit haircut will not be withdrawn.

According to sources, after the meeting of the President Nicos Anastasiades with the creditors, the Cypriot side expressed its strong opposition to the request for a corporate tax increase.

Finance Minister, Michalis Sarris, who was asked after the meeting to comment on whether creditors have put the corporate tax increase on the table, replied affirmatively.

With respect to the haircut of deposits, the Minister stressed that "any discussion about haircuts or other threats on the deposit are out of the question."

"Collectively, the EU, IMF and ECB have terms of reference which include various ways that could solve the problem of managing the public debt”, he said.

Mr. Sarris ruled out the possibility of imposing new fiscal measures involving salary or benefit cuts.

Emphatically, he stressed the determination of the President to sign the loan agreement.

It was also leaked that the Memorandum provides for the privatization of the semi-governmental organizations.