28/12/2015 17:15
The government is trying to exit smoothly from the adjustment program by implementing its commitments in relation to the privatization of Cyta and the legal separation of the Electricity Authority, just a few days before the Eurogroup examines the Cypriot adjustment program.
On the one hand the government wants the next tranche of €350 mn from its creditors and seeks to complete the program in March with a positive evaluation, which will allow it to hope for a continued participation in the ECB's quantitative easing program.
On the other hand, the government is trying to avoid head-on confrontation with the unions of the two semi-governmental organizations which have warned for measures should the government implement the prerequisites for the tranche. To appease reactions of unionists the government has already committed to transfer the cost of employment and retirement of Cyta workers to taxpayers and has ruled out the privatization of EAC.
The prerequisites of the next tranche of the program relate to the separation of the EAC and to passing bills in relation to the creation of a new Cyta company and to labor issues.
The Energy Minister sent a letter to troika on December 23 citing a proposal which provided for an effective and efficient separation of EAC and a withdrawal of the decree for its privatization.
The suspension, for at least one year, of the separation of the authority which involves the creation of two bodies, one for the distribution and transmission of electricity and another for networks and supply of electricity, is also requested.
During the meeting of the cabinet today, the proposal on the legal separation of the EAC was not discussed, as the international creditors’ answer to the government’s proposal is expected.
Following the meeting of the cabinet, the minister of energy George Lakkotrypis said that troika’s answer should be awaited and that the issue will be discussed afterwards by the cabinet, in order to take decisions, as he said.
A source close to the European Commission told StockWatch that it is not clear whether the Cypriot authorities require an extension of the separation of EAC with a simultaneous disbursement of the €350 mn tranche.
The time for decision taking is running out as the Eurogroup is expected to meet on January 14, to validate the assessment of the economic program.
The finance committee of the House which will examine the bills for Cyta is expected to meet on January 7. It is estimated that the five working days that will be left until the meeting of the Eurogroup is extremely limited time.
However, workers in both the EAC and Cyta are fully authorized by their members to take strong action if the need arises for the parliament to vote on the bills.
The five unions which are organized in Cyta, in a joint letter to the board of the organization and to the curator of privatizations to be sent today, require the revocation of the implementation of the authority’s stress test for its conversion into a private company.
On the one hand the government wants the next tranche of €350 mn from its creditors and seeks to complete the program in March with a positive evaluation, which will allow it to hope for a continued participation in the ECB's quantitative easing program.
On the other hand, the government is trying to avoid head-on confrontation with the unions of the two semi-governmental organizations which have warned for measures should the government implement the prerequisites for the tranche. To appease reactions of unionists the government has already committed to transfer the cost of employment and retirement of Cyta workers to taxpayers and has ruled out the privatization of EAC.
The prerequisites of the next tranche of the program relate to the separation of the EAC and to passing bills in relation to the creation of a new Cyta company and to labor issues.
The Energy Minister sent a letter to troika on December 23 citing a proposal which provided for an effective and efficient separation of EAC and a withdrawal of the decree for its privatization.
The suspension, for at least one year, of the separation of the authority which involves the creation of two bodies, one for the distribution and transmission of electricity and another for networks and supply of electricity, is also requested.
During the meeting of the cabinet today, the proposal on the legal separation of the EAC was not discussed, as the international creditors’ answer to the government’s proposal is expected.
Following the meeting of the cabinet, the minister of energy George Lakkotrypis said that troika’s answer should be awaited and that the issue will be discussed afterwards by the cabinet, in order to take decisions, as he said.
A source close to the European Commission told StockWatch that it is not clear whether the Cypriot authorities require an extension of the separation of EAC with a simultaneous disbursement of the €350 mn tranche.
The time for decision taking is running out as the Eurogroup is expected to meet on January 14, to validate the assessment of the economic program.
The finance committee of the House which will examine the bills for Cyta is expected to meet on January 7. It is estimated that the five working days that will be left until the meeting of the Eurogroup is extremely limited time.
However, workers in both the EAC and Cyta are fully authorized by their members to take strong action if the need arises for the parliament to vote on the bills.
The five unions which are organized in Cyta, in a joint letter to the board of the organization and to the curator of privatizations to be sent today, require the revocation of the implementation of the authority’s stress test for its conversion into a private company.
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