Cypriot Minister of Finance Vassos Sharly said the developments in Greece are not positive, adding that these developments should concern Cyprus due to the connection of the economies of the two countries.
Greece, which received EU bailout, plunged into political uncertainty following the general elections in the country last Saturday, which rewarded political parties against the fiscal austerity imposed by the bailout plan, intensifying speculation over the country`s exit from the Euro area. The Cypriot economy is connected through its banking system as Cypriot commercial banks operating in Greece posted huge losses following the haircut of Greek sovereign debt.
“This development is not positive not only for us in Cyprus, but in general for Europe. This is why the reactions were rather negative,“ Sharly said invited to comment the situation in Greece.
“So far as we are concerned due to the special relationship we have with Greece, (the developments) necessitate particular concern,“ he said.
The Minister said he does not share the view that if Greece abandons the Euro Cyprus should follow suit.
Furthermore, Sharly refrained from revealing the actions of the government in case one of the Cypriot commercial banks request state aid to achieve its recapitalization plan, reiterating that the government has many ways with which it could assist a bank to secure its recapitalization.