Stavrakis returns to investigating committee for the Cyprus economy

Former Finance Minister Charilaos Stavrakis appeared on Tuesday before the three-member committee investigating the causes of the collapse of the economy and the banking sector.
It was the third time Stavrakis answered the questions of the investigative committee for the economy.

During the hearing, Chairman of the Committee Georgios Pikis read out an extract from Stavrakis` book "The two movements" in which Stavrakis said that he had sent a letter to Fitch rating agency asking them to suspend their report for Cyprus` credit downgrade and to release it one week after Cyprus parliamentary elections in 2011. Stavrakis noted that this movement aimed at easing the tense atmosphere in Cyprus.

In relation to the public deficit, Stavrakis said that from February 2008 until July 2011 the average deficit was 4% while in the Eurozone it was slightly higher. He added that the public debt increased approximately by two units and in Eurozone over ten units.

"Without saying that no mistakes were made, a country does not go bankrupt with such indicators", he noted.

He said that it is not due to the public finances that the country went bankrupt. He added that if measures were taken in February 2010 the country would have saved 400 million euros, while it went bankrupt for 10 billion euros.