Developments in Greece not positive for Cyprus

Greece, which received EU bailout, plunged into political uncertainty following the general elections in the country last Saturday, which rewarded political parties against the fiscal austerity imposed by the bailout plan, intensifying speculation over the country's exit from the Euro area. The Cypriot economy is connected through its banking system as Cypriot commercial banks operating in Greece posted huge losses following the haircut of Greek sovereign debt.

''This development is not positive not only for us in Cyprus, but in general for Europe. This is why the reactions were rather negative,'' Sharly said invited to comment the situation in Greece.

''So far as we are concerned due to the special relationship we have with Greece, (the developments) necessitate particular concern,'' he said.

He noted that what is happening in Greece is particularly important for us because we have to be careful not to repeat weaknesses and mistakes made during the handling of the financial situation in Greece.

''And this would happen if all of us are conscious of the responsibility we have for our country and conscious of what needs to be done so to protect what we have today and not to jeopardize it,'' he added.

The Minister said he does not share the view that if Greece abandons the Euro Cyprus should follow suit.

''We belong to the Euro area, we have our own characteristics and we will deal with the issue accordingly,'' he said.