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EBRD supports settlement

12/05/2017 12:04
The economic dividend in a united Cyprus would be far better than the current state of affairs, European Bank of Reconstruction and Development, Suma Chakrabarti has stressed.

In the context of the EBRD Annual Meeting, Chakrabarti chaired a high level meeting with representativies of international organisations aiming to get a better understanding of what may be needed in order to provide support to the economy of Cyprus after a successful outcome of the reunification talks, which are underway.

The IMF and the World Bank have undertake to carry out an asset quality review of the banks in the northern Turkish occupied part of Cyprus as well as to estimate the cost of a settlement.

“But what was very clear from that discussion was actually that the economic dividend from reunification was very strong and far better than the status quo. That is a message I think it is quite important to put out there,” Chakrabarti told a press conference to mark the conclusion of the EBRD annual meeting.

“We in the EBRD fully support a successful reunification which would allow the EBRD share holders I hope to extend our mandate beyond 2020,” he added.

He recalled that since 2015 when the bank began operations in Cyprus, EBRD has invested €225 million, adding he was very happy that the bank has financed and inaugurated a solar park on the island.

The potential economic needs following a settlement of the Cyprus problem were scrutinised during a high level meeting yesterday n Nicosia, chaired by the European Bank of Reconstruction and Development Suma Chakrabarti.

According to a press release issued by the bank, alongside the EBRD high level representatives of the European Commission, the World Bank, the International Monetary Fund, the European Investment Bank, the Council of Europe Development Bank and the United Nations were present.

The UN secretary-general`s Special Envoy on Cyprus, the UN Special Representative Elizabeth Spehar, as well as the negotiators of the Greek Cypriot and the Turkish Cypriot sides, Andreas Mavroyiannis and Ozdil Nami, were also present and briefed the participants on their talks so far.

The meeting aimed “to facilitate a better understanding and alignment of needs assessments made by individual organisation and discuss possible support for the economy of Cyprus following any successful outcome of talks to unify the island,” EBRD said.

EBRD noted that during the private discussions, the international organisations shared assessments of the island’s economic needs and exchanged views on preliminary plans for assisting the private and public sectors in Cyprus.

“They agreed that in the event of unification they will seek to coordinate support for the economy of the unified island and their plans for financial assistance and investment. It is recognised that following any unification, a great deal of help would be needed to support future needs,” EBRD added.

Commenting on the meeting, Suma Chakrabarti, the EBRD President said he recognises that the talks between the two communities are not easy and there is a great deal still to discuss.

“But today`s meeting is a sign that should agreement be reached, the EBRD and other international organisations stand ready to provide technical, financial and political support within their respective mandates in order to help the island realise the huge economic potential related to reunification,” he concluded.

The Republic of Cyprus has been divided since 1974, when Turkish troops invaded and occupied 37% of its territory. Anastasiades and Turkish Cypriot leader Mustafa Akinci have been engaged in UN-led talks since May 2015 with a view to reunite the island under a federal roof.