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FinMin: “CYP 1 billion for Famagusta”

03/02/2003 08:31
“The cost for the reconstruction of Famagusta is expected to exceed CYP 1 billion”, said the Finance Minister, Takis Clerides, on the occasion of his visit to London and the Cyprus Society of the London School of Economics. Mr. Clerides said that in case of a settlement in Cyprus, the government intends to use the defense (γιατί το έκανες επίθετο, αφού είναι ουσιαστικό) expenditure for development reasons, stressing that the government is well aware of the challenges from the possible reunification of the island.

“We welcome Mr. Verheugen’s commitment that the EU is to grant 206 million euros in case of a solution. We also welcome EU’s and USA’s initiative to organize a donators’ conference and discuss the issue of financial aid”, the Minister said.

On an interview in newspaper “Alithia”, the head of Cyprus’ negotiation team, Giorgos Vasileiou, provided additional data with regard to the financial cost from the island’s reunification and summarized the conclusions of the study:

- Financial needs for the reconstruction of Famagousta, CYP 800 million.
- Renovation/Construction of buildings to be returned, CYP 830 million
- Resettlement of the Turkish Cypriots and Greek Cypriots to the Turkish Cypriot component state, CYP 1,200 million.
- Infrastructure projects, CYP 200 million.

Mr. Vasileiou admitted that the consequences of a unified Greek Cypriot and Turkish Cypriot economy have not been examined yet and noted that the income per capita of a unified Cyprus will be “lower than the existing”. “Cyprus’ position will be much more favourable though, as it will obtain bigger funds from the EU”, he added.

Finally, the CB Governor Christodoulos Christodoulou said that the final cost will be determined by three basic parameters: the cost of compensation, the cost of reconstruction and the operational cost of a new state entity.