Cyprus government considers the statements by the President of the European Council Herman Van Rompuy on the Cyprus problem as “very important”, Deputy Government Spokesman Victoras Papadopoulos has said.
Speaking to the press following today’s meeting of the Council of Ministers, held on Friday at the presidential Palace, Papadopoulos said in particular that Rompuy’s statement according to which the solution of the Cyprus problem will be in accordance with the UN resolutions and principles is “very important”.
Cyprus was divided in 1974 when Turkey invaded and occupied its northern third. UN talks which had been ongoing since 2008 stalled on the part of the Turkish Cypriot side before the assumption by the Republic of Cyprus of the EU Council rotating Presidency in July 2013.
Deputy Spokesman also announced today that the Council of Ministers has begun the discussion on the budget framework for 2014, submitted by Finance Minister Haris Georgiades.
In reply to a question, Papadopoulos said that the government is not satisfied at all with pace of bank of Cyprus ‘exit from the consolidation process, following the absorption of the good part of the Cyprus Popular Bank, which will be wound down.
Under a decision by the Eurogroup for a €10 billion financial assistance package to Cyprus, the CPB, Cyprus` second largest lender, will be wound down. Its good part (assets and insured deposits, that is, deposits below €100,000) will be folded to BOCY, the island`s largest lender, whose uninsured deposits (over €100,000) have already been converted by 37.
Papadopoulos added that the Chief Executive Officer of Bank of Cyprus should had already been appointed and shares should had already been handed to shareholders in order to decide the fate of the company.
Based on the Eurogroup decision, 37.5 per cent of deposits larger than €100,000 in the Bank of Cyprus will be converted to shares.
He also said that since April the government has been calling on all stakeholders to work towards the exit of the Bank of Cyprus from the consolidation process as soon as possible.
He said that the Government is monitoring and discussing the issue with the Central Bank of Cyprus and the Troika, admitting at the same time that “there are problems which are being addressed.”
Finally, Papadopoulos said that the Council of Ministers approved a loan agreement for 100 million euros reached between the government and the European Investment Bank to co-finance projects and programs financed by the Cohesion Fund and the Structural Funds of the European Union.
Cyprus has agreed with international lenders on €10 billion rescue package, under which, it must resolve the country`s second largest bank Cyprus Popular Bank (Laiki), and impose painful losses on deposits of more than €100,000 held at Bank of Cyprus, the largest bank of the island. Both institutions were heavily exposed to Greek debt.