19/01/2016 10:50
Concerns about the consequences of the exit of Cyprus from the program without completing commitments as to the privatization of Cyta, prevail in the government.
The government is sure about the completion of the program but is concerned that without a smooth exit, it will become more difficult for the country to be upgraded to investment grade and thus achieve cheap access to markets.
Creditors require the passage of legislation regarding the creation of a private telecommunications company and some labour issues, before disbursing the next tranche.
But, the issue of Cyta encounters the objections of all parties except the ruling DHSY and trade union reactions.
Finance Minister Haris Georgiades presenting yesterday before the cabinet the objectives and priorities of his ministry and having described the exit of Cyprus from the memorandum as given, stressed that any failure to fulfill the prerequisite for Cyta will cause a severe blow to the credibility of the country which will have a negative impact on the economy.
He referred extensively to the importance given by the rating agencies that assess the Cyprus economy on issues of privatizations, reform and public sector modernization.
The rating agencies will reassess Cyprus in March and April, with the expectation that it will gradually be upgraded to investment grade.
The aim of the Ministry of Finance is for Cyprus to tab international markets again this year and is keen to continue the momentum of positive assessments of the economy.
As leaked yesterday at the presidential palace after the cabinet meeting, the Finance Minister explained that the Troika strongly raises fulfilling the prerequisite for Cyta and noted that the creditors made it clear to the Cypriot authorities that the tranche will not be disbursed if the prerequisites are not satisfied.
Based on the up to now practice, if Cyprus exits the Memorandum next March without the bill on CYTA having been voted, the tranche will be lost
Yesterday Mr. Georgiades with statements to state radio urged parliament to expedite the procedures for voting all the bills for Cyta and those relating to public sector reform.
The chairman of the parliamentary Finance Committee, Nicholas Papadopoulos has not yet set a meeting to consider the bills on reform of the public sector and for Cyta's privatization.
The Parliament would suspend its operations next April due to the parliamentary elections in May and this is why Mr. Georgiades asks for the fast examination of the disputed bills.
On the other side, the unions of Cyta, having the advantage of the intention of the majority of parliamentary parties to vote against the bills for privatization of the organization, have an afternoon meeting with the Board and management of the authority.
The unions are expected to call the Board and management to clarify whether they accept or not the privatization of the organization, according to the general secretary of the PASE -ATHK Alekos Tryfonides.
President of EPOET -SEK Elias Demetriou told StockWatch that during the meeting the proposals of the trade unions for the modernization of the organization without having to be given to private hands will be discussed.
It will also be asked from the management to more actively intervene with the regulator of telecommunications and the competition commission to leave the authority to proceed with the implementation of major development projects.
In addition they will raise the issue of dividend payment to the state as well as the issue of sale of Cyta Hellas which, as they say, is loss-making and deprives capital from the parent company.
The unions with a joint letter last December expressed disappointment and concern about the attitude of the Board which, as argued, "is absent from the developments in a historic period for the future of Cyta".
The government is sure about the completion of the program but is concerned that without a smooth exit, it will become more difficult for the country to be upgraded to investment grade and thus achieve cheap access to markets.
Creditors require the passage of legislation regarding the creation of a private telecommunications company and some labour issues, before disbursing the next tranche.
But, the issue of Cyta encounters the objections of all parties except the ruling DHSY and trade union reactions.
Finance Minister Haris Georgiades presenting yesterday before the cabinet the objectives and priorities of his ministry and having described the exit of Cyprus from the memorandum as given, stressed that any failure to fulfill the prerequisite for Cyta will cause a severe blow to the credibility of the country which will have a negative impact on the economy.
He referred extensively to the importance given by the rating agencies that assess the Cyprus economy on issues of privatizations, reform and public sector modernization.
The rating agencies will reassess Cyprus in March and April, with the expectation that it will gradually be upgraded to investment grade.
The aim of the Ministry of Finance is for Cyprus to tab international markets again this year and is keen to continue the momentum of positive assessments of the economy.
As leaked yesterday at the presidential palace after the cabinet meeting, the Finance Minister explained that the Troika strongly raises fulfilling the prerequisite for Cyta and noted that the creditors made it clear to the Cypriot authorities that the tranche will not be disbursed if the prerequisites are not satisfied.
Based on the up to now practice, if Cyprus exits the Memorandum next March without the bill on CYTA having been voted, the tranche will be lost
Yesterday Mr. Georgiades with statements to state radio urged parliament to expedite the procedures for voting all the bills for Cyta and those relating to public sector reform.
The chairman of the parliamentary Finance Committee, Nicholas Papadopoulos has not yet set a meeting to consider the bills on reform of the public sector and for Cyta's privatization.
The Parliament would suspend its operations next April due to the parliamentary elections in May and this is why Mr. Georgiades asks for the fast examination of the disputed bills.
On the other side, the unions of Cyta, having the advantage of the intention of the majority of parliamentary parties to vote against the bills for privatization of the organization, have an afternoon meeting with the Board and management of the authority.
The unions are expected to call the Board and management to clarify whether they accept or not the privatization of the organization, according to the general secretary of the PASE -ATHK Alekos Tryfonides.
President of EPOET -SEK Elias Demetriou told StockWatch that during the meeting the proposals of the trade unions for the modernization of the organization without having to be given to private hands will be discussed.
It will also be asked from the management to more actively intervene with the regulator of telecommunications and the competition commission to leave the authority to proceed with the implementation of major development projects.
In addition they will raise the issue of dividend payment to the state as well as the issue of sale of Cyta Hellas which, as they say, is loss-making and deprives capital from the parent company.
The unions with a joint letter last December expressed disappointment and concern about the attitude of the Board which, as argued, "is absent from the developments in a historic period for the future of Cyta".
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