The package of economic measures which the government is proposing to the parties, social partners and Troika will be completed in a new meeting of the Cabinet on Wednesday evening.
The measures will then be presented to the political parties during a meeting on Friday afternoon, Government Spokesman Stephanos Stephanou announced Monday.
On June 25, Cyprus became the fifth euro zone member-state to request financial aid from EFSF/ESM, after suffering big losses as a result of the large exposure of the island’s banks to the Greek economy.
The Spokesman refrain from revealing any details regarding the measures, however he pointed out that these will affect the lives of all in one way or another therefore everyone will be called upon contributing to the consolidation of the economy and public finances.
Stephanou said that the aim is to protect the low income, those with low pensions and the vulnerable groups of society.
The Spokesman said that the package has three pillars, which have been decided during the last two EU Councils and have to do with the consolidation of public finances, dealing with structural issues that have been accumulated over the years and supporting development and social cohesion and the social state.
He said that as the President of the Republic had said in his address to the nation for the island’s Independence Day yesterday, the measures will have a social cost but this cost should be apportioned rationally, bearing in mind each citizen’s capabilities to contribute to supporting the course to consolidate the Cyprus economy.
The Spokesman said the aim is to protect COLA and the 13th salary and the government has specific proposals on these issues.
He also said there is no date yet as to the arrival of the Troika delegation for the signing of the memorandum, which should be done the soonest.
Stephanou further said that if the Russian Federation decides to grant Cyprus the loan it has requested, the issue will be managed accordingly.
Cypriot banks have been severely hit by a 76% write down of their Greek bond holdings as a result of the Greek sovereign debt haircut and have announced capital-raising plans in March 2012 and November 2011 respectively, with a liability management exercise and a rights issue as their main components.
The government has decided to act as an underwriter of a 1.8 billion euro capital issue by CPB.
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