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Moody’s concerns on lack of Plan B

21/07/2010 08:28
Economists from the private sector who had the opportunity to meet Moody’s representatives found out that the credit rating firm is concerned about the lack of a clear strategy against the increasing deficit and debt.

Former Finance Minister, Michalis Sarris, who met Moody’s analysts yesterday, said that they are concerned about the lack of measures for the economy.

“They expressed their concerns for the course of the Cyprus economy even from the first day of their contacts on the island”, Mr. Sarris told StockWatch.

“In the light of the measures that other countries have already taken although they did not face serious economic problems, I believe that our effort to prettify the economic conditions will not convince them”, he stressed.

According to former Finance Minister, the non-preparation of a Plan B on behalf of the government is regarded as a negative development by the firm.

Referring to his personal contact with the representatives, Mr. Sarris said that he tried to give a good picture of the island’s economy. “Cyprus must not be downgraded. On the other hand, you cannot lie to them because they are aware of the latest developments via several reports and contacts”, he said.

Moody’s visited Cyprus in order to ascertain the prospects of the island’s economy and send messages to the market in relation to its reliability for future lending.

Moody’s visit follows a number of downgradings of euro area countries such as Greece, Portugal, Spain and Ireland, as well as the downgrading of two big Cypriot banks due to their presence in the problematic Greek market.