Cyprus President Nicos Anastasiades said on Thursday he did not expect that Cyprus would need a new Memorandum of Understanding in the event of the island`s reunification, adding that there would be transitional provisions and safeguards to avoid any economic oscillations.
Speaking during a televised press conference on economic issues, marking the three years since his government assumed office in 2013, Anastasiades said that the benefits from a solution will be immense, adding that the cost of the settlement has not yet been determined. He added that the government is waiting for the reports of the World Bank and the IMF which have been assigned to estimate the cost of property compensations and the operational cost.
Asked about the deposits haircut in 2013, he noted that shares were given to Bank of Cyprus depositors who were affected. He added that no promises which may not be implemented must be given. “If conditions allow it, the government will look into the event of how and when it will compensate Bank of Cyprus and Laiki depositors for their losses. I am not giving any promises. It is just something which remains on our mind,” he added.
Referring to Cyprus` exit from its economic adjustment programme, Anastasiades said that Cyprus has made a breakthrough, allowing the viability of its economy. He added that there are various positive repercussions from the fact that Cyprus has exited the Memorandum.
Excluded from the international markets, Cyprus applied for financial assistance to cover its fiscal needs and to rescue its two largest bank hit severely by deteriorating assets amid the financial crisis and by the Greek sovereign debt haircut. The Cypriot authorities and the Troika (EC, ECB and the IMF) agreed in March 2013 on a €10 billion bailout, featuring a haircut of uninsured deposits.
Anastasiades also pledged that his government was determined to stamp out corruption and economic scandals. “We are not going to tolerate any old or new scandals, mainly because stamping out corruption will attract more foreign strategic investors to the island and this is something we badly need,” he said.
He noted that it is no coincidence that for the first time since the establishment of the Republic, so many well-known persons were not only brought before the courts, but were also sent to the central prison.
As regards the combating of offences related to the economy`s collapse, Anastasiades said that the investigation procedure is in the hands of the Attorney General and the law-enforcement authorities, adding that uncovering white collar crime is very complex and time-consuming.
He said that some suspects are already facing prosecution and expressed certainty that all cases will be investigated.
To a question as to whether the scandals might have played a part in Cyprus failing to attract the level of foreign investment that it could, Anastasiades said this was a good reason to fight scandals because everyone would realise that no one could be blackmailed by anyone else.
The President acknowledged that problems remain as regards the economy, adding that the same prudent policy must continue, which is not, as he noted, an austerity policy.
Moreover, Anastasiades praised the trade unions and the people for their stance, which helped the country to implement its economic adjustment programme and meet its obligations provided in the Memorandum of Understanding.
Asked about the privitisations, he said that plans on this issue will move forward, safeguarding at the same time the staff`s rights. Furthermore, he referred to the government`s decision to unbundle the Electricity Authority in two public entities, one responsible for the production of electricity and the other for the electricity network and supply, noting that the aim is to open up the electricity market.
