Finance Minister satisfied with EU projections for Cyprus

Minister of Finance Charilaos Stavrakis has expressed his full satisfaction over the latest revised projections of the European Commission for the Cypriot economy.

Stavrakis told CNA after a Eurogroup and ECOFIN meeting in Brussels that predictions for 2009 continue to give the Cypriot economy high growth rates of 2.9%, which are identical to the Ministry's predictions of 3%.

He said the Commission also agrees with the Ministry's calculations that there will be no increase in unemployment in Cyprus and that in 2009 inflation will drop below 3%.

Regarding public finances for 2009, Stavrakis said Cyprus will be among the few EU countries that will possibly have a surplus.

However, he pointed out that Cyprus should be cautious because the situation is still fluid and there were dangers that could affect the island's open economy.

''We are closely monitoring financial developments and at this point in time we are drafting a contingency plan to support some sectors of the economy which might be affected,'' Stavrakis said, adding that the plan could be implemented very soon, if necessary.

Referring to the European economy, Stavrakis said Commission projections were ''very worrying'' with projections showing a zero growth rate and a rise in unemployment.

Stavrakis is due to arrive in Moscow later in the day via Paris, for the Intergovernmental Committee on Economic Cooperation between Cyprus and Russia and to sign the protocol of the 5th session of the Committee.

He will meet Russian officials, including Minister of Finance of the Russian Federation Alexei Kudrin, with whom he will discuss bilateral economic relations and the conditions created by the international stock markets and the global economic crisis.

Stavrakis returns to Cyprus on November 8.