You are here

Aspirations to CB for liquidity

08/04/2013 14:24
The government has aspirations even to the Central Bank to avert a default, since according to Government Spokesman, Christos Stylianides, “the former government exhausted all lending margins in an imprudent way”.

According to sources from the Presidential Palace, the state might cover its financing needs by borrowing from the reserves of the Central Bank amounting to some €230 million.

The government, in order to meet current financing needs, will need €80 million and hopes that the Central Bank will not object to avoid a potential default.

Government Spokesman, in his statements at the Presidential Palace, criticized the former government that "most of assurances for meeting the state’s financial needs by the end of May are off track”.

"This government will do everything possible," he said, "in cooperation with the rest of the political system so as not to have problems with the salaries and pensions at the end of the month."

“Former government has exhausted all margins so unwisely, leaving Cyprus Popular Bank to reach out to these notorious €10 billion and undermine the very foundations of not only the banking system but also of the country’s economy”.

“The liquidity problem of the state funds has passed to the current government, despite the fact that being in the opposition it had warned of a potential default problem”.

"Unfortunately," he added, "things got this way due indecision."

"We are in a very difficult political and economic situation, but this situation requires rationality, prudence and utmost satisfaction of the national interest," the spokesman remarked.

"Right now it should be said unequivocally that those who either unconsciously or from lack of proper expertise offer solutions outside Europe downgrading the country’s European status, they lead things to a dead end”, Mr. Stylianides concluded.