15/12/2015 10:48
If Cyta is not privatized, this will be a lost opportunity for the economy and the organization, the Finance Minister Harris Georgiades stressed in his statements today.
Speaking this morning on state radio Mr. Georgiades estimated that "there will be other short-term consequences such as not receiving a tranche of about €400 mn from the troika" and he added that perhaps "there will not be a smooth completion of the program".
He explained that the completion of the adjustment program is expected next March, however, he noted that this can be done without the Cypriot authorities receiving the tranche of approximately €400 mn from international creditors.
"We need this amount," he said, " as it includes the amount that will be given to the Cooperative for its recapitalization and it also includes a final enhancement of state funds in order to operate better in 2016".
As he said, "it is not only troika that monitors and evaluates us, but also the rating agencies and we are expecting further credit rating upgrades in order for the cost of state borrowing to be reduced as there is reference to their reports on reforms and modernization '.
"We must dare some modernization steps as other states," he said.
"Cyta cannot be the last telecommunications operator across Europe that works as an extension of the public sector and with this model and these structures we cannot keep this organization under state control forever" the minister noted.
He argued that "you cannot have a modern and efficient administration, the synergies that you need to have, when you operate as a public service".
The finance minister sent the message that in the extreme case that reform does not happen at Cyta “the economy will not collapse nor will it be lost” and he pointed out again that "we should not miss this opportunity."
He also referred to the state securing the jobs and vested rights of employees and national security in telecommunications, even after the arrival of a strategic partner investor.
He reiterated the State’s intention to maintain an increased stake in the share capital of the new company to be created.
He argued that the presence of a strategic investor partner will strengthen the organization and give it the opportunity to work on a more modern basis.
"We should not expect the market share to shrink further and then decide that we should look for an investor. We see the trend, "he said.
He also sent a message to the Parliament that "the government is not going to bring a proposal which is equivalent to selling out the organization".
Speaking this morning on state radio Mr. Georgiades estimated that "there will be other short-term consequences such as not receiving a tranche of about €400 mn from the troika" and he added that perhaps "there will not be a smooth completion of the program".
He explained that the completion of the adjustment program is expected next March, however, he noted that this can be done without the Cypriot authorities receiving the tranche of approximately €400 mn from international creditors.
"We need this amount," he said, " as it includes the amount that will be given to the Cooperative for its recapitalization and it also includes a final enhancement of state funds in order to operate better in 2016".
As he said, "it is not only troika that monitors and evaluates us, but also the rating agencies and we are expecting further credit rating upgrades in order for the cost of state borrowing to be reduced as there is reference to their reports on reforms and modernization '.
"We must dare some modernization steps as other states," he said.
"Cyta cannot be the last telecommunications operator across Europe that works as an extension of the public sector and with this model and these structures we cannot keep this organization under state control forever" the minister noted.
He argued that "you cannot have a modern and efficient administration, the synergies that you need to have, when you operate as a public service".
The finance minister sent the message that in the extreme case that reform does not happen at Cyta “the economy will not collapse nor will it be lost” and he pointed out again that "we should not miss this opportunity."
He also referred to the state securing the jobs and vested rights of employees and national security in telecommunications, even after the arrival of a strategic partner investor.
He reiterated the State’s intention to maintain an increased stake in the share capital of the new company to be created.
He argued that the presence of a strategic investor partner will strengthen the organization and give it the opportunity to work on a more modern basis.
"We should not expect the market share to shrink further and then decide that we should look for an investor. We see the trend, "he said.
He also sent a message to the Parliament that "the government is not going to bring a proposal which is equivalent to selling out the organization".
Related Articles
