Ministerial Committee responsible for economic issues had on Tuesday its first in dept discussion with the representatives of the Troika.
A Troika mission (representatives of EU Commission, European Central Bank and IMF) returned to Cyprus on Monday, as part of the Republic’s application for financial assistance from the EU bailout mechanism, to negotiate with the government the bailout terms and conditions.
The Troika was here in early July on a fact finding mission for a close scrutiny of the banking sector, which has been severely hit by Greek sovereign debt haircut and over-exposure to the Greek economy, as well as the refinancing requirements of the government.
The Ministerial Committee is comprised of the Ministers of Finance Vassos Shiarly, Labour and Social Insurance Sotiroula Charalambous, Commerce, Industry and Tourism Neoclis Sylikiotis and Deputy Minister to the President Titos Christofides.
Speaking to the press after the meeting, Government Spokesman Stephanos Stephanou said that the Troika “submitted its own estimates on the Cypriot economy on the basis of the data collected during its first visit to Cyprus ".
He added that on behalf of the Government, "we gave our views on various issues concerning the Cyprus economy and we made a first comment on Troika’s estimates on the basis of the positions of the government."
Stephanou noted that a very deep dialogue was held at today’s meeting with Troika adding that the discussion will continue on Friday.
Replying to a question, he reiterated that "the main problem facing the Cypriot economy is the high exposure of the Cypriot banks to the Greek economy causing all the side effects and problems to the Cypriot economy."
Asked about the measures which are expected to be introduced by Troika, he said that Troika did not say anything about the measures proposed for Cyprus and recommended patience to everyone until the discussion with Troika concludes and be able to make estimates on the measures proposed by the Troika.
Asked if there is a gap between the estimates of the two sides, he said "we shall see that when the discussion and dialogue concludes”, saying that the discussion is not over yet.
“It is very likely this Friday to have an estimate on where does Troika stand on issues relating to the economy," he said.
Asked if the Troika had revealed its bailout conditions, he recommended patience until Friday for the discussion to be concluded.
Asked if they discussed the European Commission’s seven recommendations to Cyprus, he said that they discussed "some recommendations" and reiterated that it is too early to talk about and make estimates regarding the final outcome of the discussion.
Asked if a discussion on Troika’s estimates in relation to the banking sector was held, Stephanou said that this issue is addressed mainly by the Central Bank, noting that "of course we have our own views on the matter”.
“We are in very close contact and close consultation with the Central Bank regarding the issue of banks, "he said .
He said that "it is a very big issue because this is why we applied to the European Support Mechanism.”
Asked about the loan Cyprus has asked from Russia, the Spokesman said that there is nothing new for this issue.
