Cyprus will not need a European Union bailout by the European Stability Mechanism, Finance Minister Kikis Kazamias said during a Press conference held in Nicosia, while expressing his disappointment over the rationale of the latest downgrading of Cyprus’ economy by Fitch ratings agency.

Fitch downgraded Cyprus` credit rating on Wednesday, saying the island was headed for a European Union bailout despite the austerity package worth 750 million euro announced Wednesday.

The government of President Christofias would rather solve Cyprus’ financial problems on its own, instead of implementing measures imposed by third parties, Kazamias noted.

The Minister of Finance expressed his optimism over the efficiency of the package of financial measures, which the government is forwarding to the House of Representatives for approval.

With these measures, additional revenues and savings will reach an estimated sum of 125-150 mln euro by the end of 2011 and an additional 600 mln euro by the end of 2012, Kazamias said. Deficit will be reduced to 5.5% by 2011 and to 2.5% next year, with the aim of elimination by 2013, the Minister continued.

The package, which was adopted on Wednesday by the cabinet, includes seven draft legislations that need the approval of the House’s majority to be implemented. The House plenary is scheduled to convene on August 25 to decide on the legislation. A debate on the measures will take place at the House Committee on Financial and Budgetary Affairs on the 22, 23 and 24 of August.