Chipre aprueba algunas medidas de austeridad; falta aprobar rescate
Genevieve Signoret & Patrick Signoret
En las próximas dos semanas, el parlamento deberá aprobar medidas adicionales para que Chipre reciba el rescate de 10 MMn de euros por parte del Fondo Monetario Internacional y el fondo de rescate europeo, MEDE. Votará sobre el acuerdo de rescate en sí –el memorando de acuerdo– en una o dos semanas. Todavía no es claro si el partido principal de oposición, AKEL, permitirá su ratificación (WSJ, Cyprus Mail).
WSJ (18 abril):
Under the terms of a deal with its creditors reached earlier this month, Cyprus has agreed to undertake some €13 billion of measures to fix its public finances and restructure its banking sector. The austerity measures include tax increases, privatizations and spending cuts in the public sector.
At the same time, Cyprus agreed to close the island’s second-biggest bank, Cyprus Popular Bank PCL, and Bank of Cyprus PCL, the island’s biggest, something that will lead to steep losses for big depositors at the two lenders.
All the measures Thursday passed by a wide majority, and had the backing of Cyprus’s main opposition party, AKEL. But AKEL says it won’t support the actual bailout agreement when it comes to a vote in Parliament in about two weeks. Without its support, Cyprus’s government may not have enough votes in the legislature to pass the bailout memorandum, although there is some speculation AKEL may abstain from that vote, allowing the memorandum to pass with a reduced majority.
Cyprus Mail (19 abril):
The MoU is not the same as the actual loan agreement, which is akin to an international treaty between the Republic and foreign governments.
Under the constitution, the treaty is subject to parliament’s approval. Once the loan agreement is drafted, it will be reviewed by the cabinet, which will then forward it to parliament for discussion and the vote. It’s understood the MoU and the loan agreement would be bundled into a single document as a ratification law.
[…] At a news conference yesterday, new DISY leader Averof Neophytou sent out a warning shot to dissenting quarters. The choice before Cyprus is clear, he said: either accept the bailout or face bankruptcy.
He added: “Those who want to get rid of the troika should tell us how we can come up with €30bn; if they do that, we will be the first to kick the troika out.”
Asked to clarify, Neophytou said the cost of leaving the euro would be €30bn, because in addition to its €23bn financing needs, Cyprus would also need to pay back the some €10bn its banks have borrowed from the Emergency Liquidity Assistance. The ELA is underwritten by the government.