[QODLink]
Europe

Cyprus pleads for EU help as bailout approved

President urges EU to take measures to spur growth in Cyprus without increasing $10bn bailout loans.

Last Modified: 12 Apr 2013 17:02
Email Article
Print Article
Share article
Send Feedback
Under the bailout deal, Cyprus will have to come up with $17bn of its own [AFP]

Cyprus has appealed to the EU for help in weathering a devastating economic crisis, as eurozone ministers approved a $13bn bailout for the nearly bankrupt island.

The appeal from President Nicos Anastasiades on Friday did not specify what he was seeking, but presidential spokesman Christos Stylianides made clear Nicosia was not looking for more money under the bailout programme.

The government "has not requested additional financial assistance under the memorandum with the troika," Stylianides said in a statement, referring to the deal reached with the so-called troika of international lenders - EU, IMF and European Central Bank.

"What the president of the republic is discussing with European officials is the possibility of increasing European funds for growth and social cohesion."

Stylianides said Cyprus would seek funds under the EU's multi-annual financial framework 2014-2020 for member states suffering serious consequences from the euro crisis.

He said Cyprus is also looking for additional funding from EU social cohesion and rural development funds.

'Reallocate structural funds'

Anastasiades said he had already spoken to EU Economy and Euro Commissioner Olli Rehn ahead of the ministers' meeting in Dublin and was also writing to European Commission chief Jose Manuel Barroso and EU President Herman Van Rompuy.

"We will try to reallocate structural funds so that we can use them as effectively as possible to support the kind of economic activities in Cyprus that will help the country to return to recovery ... for growing and investment and employment," Rehn said.

Of the loan approved on Friday, $11.8bn will come from the eurozone and $1.3bn from the International Monetary Fund.

Cyprus will also have to come up with $17bn of its own, with the bulk of that sum coming from the closure of its Laiki bank and the restructuring of the Bank of Cyprus.

Cyprus will also raise taxes, cut spending and implement structural reforms to improve its public finances and to be able to eventually repay its debt, that is to fall to 104 percent of GDP in 2020 from a peak of above 126 percent in 2015.

339

Source:
Agencies
Email Article
Print Article
Share article
Send Feedback
Topics in this article
People
Country
City
Organisation
Featured on Al Jazeera
Western fighters have streamed into the Middle East to help 'liberate' Arab countries such as Syria and Libya.
The Pakistani government is proposing reform of the nation's madrassas, which are accused of fostering terrorism.
Weaving and handicrafts are being re-taught to a younger generation of Iraqi Kurds, but not without challenges.
The author argues that in the new economy, it's people, not skills or majors, that have lost value.
Featured
After years of rapid growth, Argentina is bracing for another economic crisis as inflation eats up purchasing power.
Deaths of 13 Sherpas in Nepal has shone a light on dangerous working conditions in the Everest-climbing industry.
Al Jazeera investigation uncovers allegations of beatings and rape in Kenya's ongoing anti-terrorism operation.
Incumbent Joyce Banda has a narrow lead, but anything is possible in Malawi's May 20 elections.
Western fighters have streamed into the Middle East to help 'liberate' Arab countries such as Syria and Libya.
join our mailing list