Finance Minister Harris Georgiades reassured the Fiscal Council on Friday that the government will remain focused on keeping state budgets balanced by avoiding deficits.
Georgiades met with the council on Friday, in a meeting which was the first since President Anastasiades was re-elected and Georgiades reappointed as Minister in March.
President of the council Demetris Georgiades raised concerns over the state payroll and certain provisions of state-funded ESTIA, to manage mortgage-backed NPLs.
After the Council meeting, Demetris Georgiades said had greater confidence the government will not indulge fiscal derailment.
The Finance Minister said that he has reassured the council that the government is committed to stick to and apply a fiscal policy within the framework of a balanced budget.
Harris Georgiades said that the government still relies on the cooperation and the "objective and rigorous judgment of the Financial Council".
"The priority is the reduction of public debt as soon as possible," Demetris Georgiades said.
He added that the Council has raised some concerns regarding the increase of the state payroll by withdrawing pay cuts made in previous years in the wider public sector and the compensation to be paid in the case of the Cyprus Co-operative Bank.
Regarding the ESTIA project, the head of the council said they share the public's concerns over a possible uneven treatment between eligible and ineligible borrowers.
However, as he said, the council acknowledges that there are some sensitive issues regarding the sustainability of the banking system which need to be taken into consideration.
"I think we are leaving with a greater degree of confidence on the course of public finances and that there will be no derailment at least in the coming years," said Demetris Georgiades.
Meanwhile, the Finance Minister said that Cyprus should be expected to re-enter international markets this year, expressing the conviction that the confidence of the markets towards the Cypriot economy will be confirmed
During five years of bailout economics and austerity, it was unable to do so.
"The Republic of Cyprus has long restored its access to international markets and, of course, it should be expected, within a period of time to be determined, that Cyprus will re-enter the international markets," he said.
