In addition to the support of Laiki Bank, a major problem is the debt of our country abroad. Two large loans, amounting to 3 billion, expire in 2013.
Cyprus is now forced by de facto, if its markets have closed the door and they do not lend to it and if securing a loan from a third country is almost impossible, to resort to the Support Mechanism.
The Minister of Finance, Vassos Siarlis, expressed his commitment that within the next few days the new package of measures for the economy will be ready to be submitted.
With the "blessings" of the President of the Republic, Dimitris Christofias, the Government, through the Minister of Finance, proceeds, moreover, to sacrifice the ATA, on the altar of the economic crisis.
Today, the social partners are invited to the office of the Minister of Finance to hear his proposals for changes in the institution of providing ATA, so that the state can save several millions and at the same time make the institution fairer.
According to information from the newspaper "Simerini", ATA will continue to be given as it is to the low paid, but gradually and on the basis of the salary of each employee, reductions will be made, so that the high paid are entitled to a smaller amount. From some amount or more, the ATA will be zero.
The Minister of Finance will give the social partners time to respond, but will not accept lengthy procedures in making the final decision.
The social partners will be followed by the political parties, which Mr. Siarlis will call for intensive consultations on the new package of measures, which will focus on public sector cuts and taxes, which will not target the purchasing power of citizens.
Concern is also heightened by rumors that the Siarlis measures include lump-sum taxation, prompting several civil servants to apply for early retirement.
The President of DISY, Nikos Anastasiadis, expressed the readiness of his party to support the measures proposed by the Government, provided that these measures will be supported by the ruling party.
Source: Radio Proto
