Cyprus Privatization Plan Viable – Investigative Due Diligence

The privatisation plan for Cyprus is viable according to Finance Minister, Harris Georgiades.

Providing assurances over a disputed bill concerning the privatisation of semi-governmental organistations, Georgiades noted that it does not deprive employees of their employment and pension rights, nor does it remove powers from the House of Representatives.

The privatisation plan aims to generate state revenue of €1.4 billion by 2018 and approval is required is to ensure Cyprus gets the 4th tranche of money under the under the terms of the Memorandum of Understanding with the Troika.

“The privatisation plan does not undermine workers’ rights. The Government will ally with the workers,” Georgiades told the Parliamentary Committee on Financial and Budgetary Affairs, which convened on Monday to discuss the bill.

The role of the House of Representatives will be lasting and important, he noted, adding: “Each step and change will pass through Parliament in a manner that is compatible with the Constitution”.

Georgiades warned that in the instance that major changes need to applied to the law, the Government will need to repeat consultations with the Troika. He also noted that if Cyprus fails to collect the amount required by 2016 from the privatisation plan, it will be faced with a financing gap and an additional Memorandum may be required to fill the deficit.

Georgiades has asked MPs to approve the bill by March 5, in order for Cyprus to fulfil its commitment as provided under the Memorandum, before a Eurogroup meeting scheduled on March 10.

 


Links