The amount Cyprus will be asking as financial assistance from the EFSF/ESM has not yet been determined, according to Cyprus Finance Minister Vassos Shiarly, who has said that the size of the bailout will be established in accordance with the economy’s needs.
To a question how much Cyprus is asking for, shortly after today’s meeting on economy held at the Presidential palace with the political parties, Shiarly said “neither ourselves, nor the people we are talking to have ever raised the question of the amount. This is a matter which will be determined during the process that will follow. So no amount has ever been discussed”.
Asked whether it will be determined according to the size of the bilateral loan that Cyprus will hopefully secure, the Finance Minister replied “that the amount will be determined by virtue of what will be established as the requirement or the needs of the country, when we seat down to analyze the requirements”.
As he said the answer from Russia on Cyprus request for a bilateral loan is still pending.
The Finance Minister refused to comment on the ten billion figure which has been speculated on today and said that he is not involved in speculations.
He also said that negotiations will begin as soon as Europe and the Government are ready to negotiate. “We are going through a process at the moment and when we are ready then we will be ready, but I don’t know yet”.
Asked about the meeting with the political parties the Minister referred to the package of measures discussed during the meeting.
“This was a package which we have worked on for quite some time. We have been talking to the social partners and now to the political parties in order to establish that there is an understanding and an easy passage through Parliament when the time comes” he noted.
According to Shiarly the package was within the scope that the Government had announced a long time ago. “In other words a package which ranges between a 150 and 200 million euro” he indicated.
Asked whether Cyprus will avoid harsh measures, Shiarly expressed the view that the measures under discussion “were a compromise which at the end of the day, I like to believe, everybody will be happy with”.
Shiarly pointed out that he does not talk about harsh measures. “I talk about a package which will be suitable for Cyprus and will be the best for the people of Cyprus” he noted.
The Finance Minister said that the IMF’s involvement in the negotiations for a bailout is something that is being discussed at the moment.
He went on to say that “the success of the resolution of any problem is to retain your calm so I hope I am calm. And I am”, adding that “there is always time. Just be patient”.
Replying to a question Shiarly said the recapitalization of the banks is being discussed with the European Banking Authority and all necessary procedures will be concluded in, that is June 30th.
The Cyprus government informed on Monday the appropriate European Authorities of its decision to submit to euro area member states a request of financial assistance from the EFSF/ESM.
According to an official announcement issued yesterday, the purpose of the required assistance is to contain the risks to the Cypriot economy, notably those arising from the negative spillover effects through its financial sector, due to its large exposure to the Greek economy.
"The Government of the Republic of Cyprus has today informed the appropriate European Authorities of its decision to submit to euro area Member States a request of financial assistance from the EFSF/ESM," the announcement of the Republic of Cyprus said.
