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MoF reiterates support to Greece

10/02/2015 16:32
Finance Minister Harris Georgiades has reiterated that Cyprus will support Greece at the special Eurogroup on Wednesday in Brussels.

In statements he made in the margins of the “Cyprus Investors Summit 2015”, in Limassol, on Tuesday, Georgiades pointed out that Greece is in a difficult position and Cyprus will support “the necessity of creating a prospect."

No country should find itself both excluded from international markets and a bail-out programme, he added.

We should prevent this eventuality through the Eurogroup meeting and Cyprus` efforts will focus in that direction, Georgiades said.

He further wished that Greece will be able to gain a prospect for continuing its course of economic recovery.

Georgiades continued to say that Cyprus will stand by Greece without expecting any benefits or anything in return. Cyprus, he explained, is following its own course which “is already bearing fruit.”

He also noted that the only quick way to rid Cyprus from the Troika is restoring its access to the international markets “a goal which is absolutely within reach and feasible for Cyprus.”

Replying to a question on the matter of the suspension for the implementation of the legislation on foreclosures which has stalled Cyprus` adjustment programme reviews, Georgiades said that what should concern us is the continuation of the suspension of financing of the Republic of Cyprus and even more how this reflects to the international markets, as well as the inability to use important tools such as the quantitative easing offered by the European Central Bank.

Replying to another question he said that “the Cypriot economy is following a course of correction and recovery; We have stabilised the banking system and the economy; The prospects for moving forward are being shaped and I would not like to even consider that due to approaches based on exaggeration and negativity rather than true facts, we would ourselves create new problems to our economy".

Commenting on privatisations Georgiades also said “the government does not consider them largely as a revenue – raising tool but rather as a very concrete and tangible reform which will attract foreign investments to our economy that we need.”

Social protection expenditure at €4,09m

The social protection expenditure amounted to €4.087,3 million in 2012, compared to €4.069,6 million in 2011, according the report “Social Protection in Cyprus, 2012”, published by the Statistical Service.

According to the report, for 2012, the Social Protection expenditure as a percentage of GDP was 23,1%. In the European Union (EU 27) the corresponding percentage was on average 29,5%, in 2012.

Old age and sickness benefits in Cyprus were the major components of all social benefits and comprised 46,3% and 21,8% respectively, of the total.

The overwhelming majority of the benefits originated from public sources. Specifically, in the year 2012, the public sources were 82,1% of the total Social Protection benefits.

The report is based on a survey in compliance with the European system and provides detailed data on the Social Protection expenditure of the public and private sector. Social Protection expenditure includes old age, sickness, disability, unemployment, housing and other categories of benefits.