US authorities satisfied over progress in the Cyprus economy, FinMin says
The US authorities are satisfied over the progress in the Cypriot economy following the agreement on a €10 billion bailout between Cyprus and its international lenders.
The Cypriot Minister of Finance Harris Georgiades met with his US counterpart Jack Lew in Washington, with whom he discussed the correction course of the Cyprus economy after the bailout that featured a haircut to deposits over €100,000 that shattered the island`s oversized banking sector.
So far Cyprus had two positive programme implementation reviews by the Troika of the European Commission, the European Central Bank and the IMF. Cyprus received 4.7 billion of the €10 billion bailout.
“They are too satisfied over the efforts and the progress we achieved since the spring. They were closely monitoring the situation and I personally had discussions with US Treasury officials,” Georgiades said in statements after the meeting.
Asked on the solution given to Cyprus, Georgiades said that his interlocutors consider the decisions taken as difficult but they acknowledged that “the problems that were left to inflate, did not create conditions for other alternatives.”
He said that they also consider the decision of Standard and Poor`s rating agency to upgrade Cyprus rating as very important, adding he explained the way forward.
“By implementing the adjustment programme on the one hand and encouraging economic activity in new sectors and by opening the economy on new investments on the other,” he said, adding “this combination of programme implementation, attracting new investments and encouraging new investments is under the circumstances the way to go.”
On the relationships between the two countries, Georgiades said maintaining contacts and widening the cooperation with the US government and the Congress facilitating economic business relationship constitutes a strategic option.
He pointed out that possible interest for investments can be generated through the constant efforts for the restoration of Cyprus` credibility and the construction of dependable political relationships.
Yesterday Georgiades met with IMF Director of the European Department Reza Moghadam and the Fund`s chief of Cyprus Mission Delia Velculescu.
Speaking after the meeting, Georgides said he had a very good discussions with the IMF officials which covered the issues considered as a priority in 2014. “It is very important to have an aligned course and prioritization with the IMF. On that basis we were be able to implement the programme in a satisfactory manner,” he said.
Responding to a question on the privatizations, Georgiades said that the Council of Ministers will hold discussions on the privatizations plan and will take the preliminary decision that would enable the commencement of a process whose conclusion is expected no sooner than two years from now.
He also recalled that the programme partners consider privatizations as an issue of priority.
Under the programme Cyprus must draft until the end of December a privatizations plan aiming at securing €1.4 billion until 2018.