Cyprus has averted the danger of a disorderly default and is now receiving kudos for its efforts from its international lenders, eleven months after developments that brought the country to the brink of bankruptcy, Cyprus President Nicos Anastasiades has said.
He thanked center-right DIKO and the right-wing European Party for having contributed to that effect – as part of a coalition government formed with ruling DISI – along sacrifices made by the people, and noted the creation of favorable prospects for the country’s economic recovery and the solution of the Cyprus problem.
Recently, DIKO has announced that it will walk out of the government, due to disagreements on the handling of the Cyprus issue. The President asked all Ministers for their resignation, during an extraordinary Cabinet session on Friday, calling on Ministers to retain their posts until his final decisions on a reshuffle, on March 15.
Speaking in the southern coastal town of Larnaca on Friday, President Anastasiades noted that the country’s economy has already received its first positive evaluation after three years, by rating agency Standard and Poor’s, adding that the yield of state bonds follows a downward trend.
“This shows trust in the stabilization course we have taken,” the President said. He added that he acknowledges the difficulties many Cypriots are facing today, but noted however that the adverse scenarios have been averted.
On the privatization of semi-government organisations, an obligation arising from the Memorandum of Understanding Cyprus has signed with its international lenders (European Commission, ECB, IMF), the President of the Republic said that he will not “yield to threats” by trade unions.
“Replacing monopolies with competition is our obligation and is in the interest of the people,” he stressed.
He added that the obligation arises from the first MoU signed in November 2012 by the previous government with the Troika.
The President said he strives to achieve consensus with all political parties and is in constant consultation with them, despite disagreements. He expressed his respect for the opposition parties and said he will avoid confrontation.
In late March 2013 the Cypriot authorities agreed with the European Commission, the European Central Bank and the IMF, collectively known as the Troika, on a €10 billion bailout. Recent Troika reviews of the country’s adjustment and stabilization program noted that Cyprus had achieved better-than-expected results
