03/12/2012 06:20
The debate on the Cypriot support program in Europe is transferred to a political level today.
Since last Friday, the Cypriot memorandum lies in the hands of Eurozone Finance Ministers and will be discussed by the Eurogroup today. The troika, reportedly leaked in Brussels, is expected to present information regarding the sustainability of the Cypriot debt and will set timelines for the ratification and implementation of the MoU.
As stated by Finance Minister Vassos Shiarly, no final decisions on the memorandum will be taken tomorrow, but significant steps will be made towards its signing between Cyprus and the creditors.
Final decisions will be taken at another Eurogroup meeting on 12 or 13 December, ahead of Pimco’s report on the amount of recapitalization of the banks.
In the meantime, the intentions of the Cypriot political leadership will be clarified, since it will be called to vote painful fiscal consolidation measures to achieve the objectives of 2012 and 2013.
Tomorrow, the President of the Republic Demetris Christofias will address announcement to the people of Cyprus which is expected to explain why Cyprus applied to the support mechanism and will highlight the government’s efforts to safeguard major achievements for the Cypriot workers.
Next Thursday, the plenary of the House of Representatives will have talks on a total 20 bills that have to do with cuts and cuts in wages and benefits in the public and broader public sector as well as the imposition of new taxes on the basis of the measures stemming from the forthcoming memorandum.
The passage of the bills will reveal whether there is a necessary support of the Memorandum in Parliament, even before a formal endorsement by the Cypriot government.
The interim report of Pimco on the recapitalization of the banks will determine the support in Cyprus and the IMF's willingness to participate in the program. The report should be given to the Central Bank Governor, Panicos Demetriades this Friday.
The MoU states that support will reach €10 billion, with the Cypriot authorities hoping, however, that the number will be smaller.
Since last Friday, the Cypriot memorandum lies in the hands of Eurozone Finance Ministers and will be discussed by the Eurogroup today. The troika, reportedly leaked in Brussels, is expected to present information regarding the sustainability of the Cypriot debt and will set timelines for the ratification and implementation of the MoU.
As stated by Finance Minister Vassos Shiarly, no final decisions on the memorandum will be taken tomorrow, but significant steps will be made towards its signing between Cyprus and the creditors.
Final decisions will be taken at another Eurogroup meeting on 12 or 13 December, ahead of Pimco’s report on the amount of recapitalization of the banks.
In the meantime, the intentions of the Cypriot political leadership will be clarified, since it will be called to vote painful fiscal consolidation measures to achieve the objectives of 2012 and 2013.
Tomorrow, the President of the Republic Demetris Christofias will address announcement to the people of Cyprus which is expected to explain why Cyprus applied to the support mechanism and will highlight the government’s efforts to safeguard major achievements for the Cypriot workers.
Next Thursday, the plenary of the House of Representatives will have talks on a total 20 bills that have to do with cuts and cuts in wages and benefits in the public and broader public sector as well as the imposition of new taxes on the basis of the measures stemming from the forthcoming memorandum.
The passage of the bills will reveal whether there is a necessary support of the Memorandum in Parliament, even before a formal endorsement by the Cypriot government.
The interim report of Pimco on the recapitalization of the banks will determine the support in Cyprus and the IMF's willingness to participate in the program. The report should be given to the Central Bank Governor, Panicos Demetriades this Friday.
The MoU states that support will reach €10 billion, with the Cypriot authorities hoping, however, that the number will be smaller.
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