The Ministry of Finance has issued a press release, in which it is clarified that Cyprus has not asked the intervention of the European Central Bank (ECB) in the secondary market, adding that this issue is just one of the approaches included in the open discussions held with the Central Bank of Cyprus.
The clarification came in response to a Reuters report, filed earlier Wednesday suggesting that the government is considering with the Central Bank of Cyprus the possibility of asking the European Central Bank to buyback government bonds held by Cypriot banks.
In a statement, issued by the Ministry of Finance, it is clarified that Minister Kikis Kazamias never associated the issue with the bonds held by local banks in the domestic market of Cyprus.
“The Minister of Finance has by no means stated that Cyprus will ask the ECB to intervene in the secondary market. He stated that different approaches, one of which is the above, are being considered in an open agenda during his meetings with the Governor of the Central Bank of Cyprus”, the press release states.
It is also made clear that the above mentioned issue of ECB intervention in the bond market was never associated by the Minister with the banking system.
“As it is known, the ECB intervention in the bond market is intended to restrain the yield of bonds”, the press release says, adding that the Minister never associated the issue with the bonds held by local banks in the domestic market of Cyprus.
The Ministry of Finance once more stresses its commitment to normalise conditions in the government bond market through the consolidation of public finances and the stabilization of the index of credit worthiness assessment by the international credit rating agencies.
''Only then it is feasible to adopt any additional measures to improve the market conditions”, it is noted.
In his remarks, the Minister of Finance also said he is working intensively with the political parties and the social partners so that the second package of austerity measures is submitted to the House of Representatives by the 15th of September.
On August 26th the House of Representatives approved the first of two packages of austerity measures aiming at fiscal consolidation.
