AKEL on governments decision to proceed with additional borrowing

Statement by Stavros Evagorou, Deputy Parliamentary Representative of AKEL-Left-New Forces

AKEL C.C. Press Office, 10th June 2014, Nicosia

The government has decided to communicate this decision to the political parties as well, to proceed to an open competition in order to secure €500 million for refinancing the public debt which is expiring.

The decision was accompanied by pompous statements and rejoicing such as for example “we are returning to the international markets”, apart from the unfortunate argument put forward that the additional borrowing will enhance the liquidity of the banking system.

Firstly, when a country continues to be shackled and tied to a Memorandum which is leading the people to absolute humiliation no celebrations whatsoever can be justified.

How can a country celebrate that it is returning to the markets when the number of unemployed has risen to 80,000; when 45,000 of our fellow compatriots are being fed from social food banks; when several thousand homes are in danger of being confiscated and when austerity and cuts in wages and benefits have reduced the purchasing power of households by 30%?

How can celebrations be justified for a return to the markets when the interest rate expected to be secured is more than twice what other EU members secure?

How can the Government speak about improved liquidity when everyone knows that the borrowing for a refinancing of the existing debt does not affect any liquidity indicators in the market?

As AKEL, we are still waiting to hear convincing answers about the recent non-transparent borrowing of €100 million, through which the Government in reality gave several millions of Euros to speculators, money that the Cypriot taxpayer is once again called upon to pay.

We therefore urge the Government to abandon its pompous declarations and celebrations about Cyprus’ alleged return to the markets and focus on solving the pressing day-to-day problems facing the Cypriot people.

Cyprus can really hope when the Government decides to change policy; when it decides to support genuine development whilst simultaneously strengthening social cohesion.