FRIDAY, 26 FEB 2021

 

CONNECT

Facebook Linked In Twitter
GAP Vassilopoulos
GloriaJeans_266x90px
IMH LTD

Perdios Presents Main Goals of the 2030 National Strategy for Tourism

President Expresses Strong Determination To Participate In Informal Meeting In Geneva On Cyprus

IMH LTD

ECONOMY

A New Budget Rejection Will Push Cyprus To Default, FinMin Says

A New Budget Rejection Will Push Cyprus To Default, FinMin Says

A new rejection of the 2021 state budget could lead Cyprus to default on its payments, Minister of Finance Costantinos Petrides warned on Friday, stressing that without fiscal support to businesses and self-employed to face the difficulties due to the Covid-19 pandemic “we could be mourning on scorched earth.”


 
Petrides who briefed the parliamentary committee of Finance and Budgetary Affairs on the revised state budget said a new rejection “surely will lead Cyprus into adventures.”
 

 
“We will not be able to borrow from the markets, as we were planning to do in the coming period, we will not be able to support businesses and our investment grade will be threatened,” he said in statements to the press following the meeting.
 

 
Petrides told MPs that Cyprus needs to refinance maturing debt which amounts to some billions pointing out that a problem will arise in case Cyprus loses its market access.
 


“If we don’t have the capacity to borrow, we may end up defaulting. We secured liquidity in March and April (of 2020) but this liquidity should be replenished,” he said.
 

 
“Apart from the fact that we will not able to provide money (to support the economy) we may be mourning on scorched earth as we are in the eleventh month of the pandemic and the resilience of the private economy has reached its lowest point,” he stressed.
 

 
For the first time in Cyprus’ history, the state budget was rejected in December 2020 by parliament and the state is operating as the parliament with a resolution authorised the funds necessary for January while it has the statutory authority to authorise funds for an additional month.
 

 
Presenting the revised budget, Petrides said the government incorporated 26 of the 37 amendments the parties approved on the initial bill, while the revised budget provides for increased expenditure amounting to €339.9 million, of which €220 million are associated with the pandemic.
 
 

He also said the government incorporated to the revised budget bill policies issues such as public consultation concerning minimum wage, retirement at 63 for some professional groups without a 12% penalty after an actuarial study to secure sustainability of the Social Insurance Fund and the support of mortgage borrowers who are not deemed eligible for support by the ESTIA scheme.
 
 

The vote on the revised budget is scheduled for next Thursday, January 21.

 

Source: CNA

MORE ON ECONOMY

Bank Of Cyprus Posts €171 Net Loss In 2021, Continues De-Risking Despite Covid Crisis

Bank of Cyprus, Cyprus’ largest lender posted a net loss of €171 million in ...

Economic Sentiment In Cyprus Deteriorates Marginally In February

In February 2021, economic sentiment in Cyprus deteriorated marginally as the Economic ...

Cyprus Trade Deficit: January – November 2020

Cyprus` trade deficit was €4,326.2 mn in January – November 2020 compared to ...

FROM AROUND GOLDNEWS

   

11th Nicosia Economic Congress

IMH, in association with the Institute of Certified Public Accountants of Cyprus (ICPAC), presents the 11th Nicosia Economic Congress on Tuesday, 20 April 2021 ...
   

4th Cyprus International Tax Conference

IMH is organizing the digital event “4th Cyprus International Tax Conference” on Thursday, 30 March 2021.   Distinguished speakers from ...
   

Danos | International Property Consultants & Valuers: Thessaloniki Market Report

Greek Economy Overview Greece had to face the outcomes of a ten year economic crisis, which officially came to an end in 2019. Before yet witnessing the ...
   

Alphamega Hypermarkets: New Stick & Win Loyalty Programme Featuring Top Quality MÖVE Products

Alphamega Hypermarkets have launched a collaboration with the brand MÖVE as part of the company’s Stick & Win loyalty programme, rewarding ...
   

Perdios Presents Main Goals of the 2030 National Strategy for Tourism

Cyprus Deputy Minister of Tourism Savvas Perdios presented the main goals of the 2030 National Strategy for Tourism, during a teleconference with the World ...
   

European Leaders Are Calling For A “Vaccine Passport” Before The Summer Tourism Season Arrives.

European leaders, deeply concerned that another summer’s lucrative tourism trade could be lost to the pandemic, are escalating calls for the European ...
   

President Expresses Strong Determination To Participate In Informal Meeting In Geneva On Cyprus

President Nicos Anastasiades has expressed strong determination to participate in the informal meeting on Cyprus which will take place in Geneva.  The UN ...
   

G.A.P. Vassilopoulos Group Proudly Announces Its Cooperation With DSV PANALPINA A/S

G.A.P. Vassilopoulos Group proudly announces its cooperation with DSV PANALPINA A/S, one of the largest Freight Forwarding companies in the world. ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Nicosia_Economic_Congress_26/01-20/04
CIM_05/02-05/04_300X250px

IMH LTD