The government’s “success story” is a myth
Statement by Aristos Damianou, member of the Political Bureau of the C.C. and AKEL MP
AKEL C.C. Press Office, 11th March 2017, Nicosia
Unfortunately, the European Central Bank’s latest figures on the state of the Cyprus economy which have been released substantiate what people are experiencing on a daily basis. That is, that the narrative propagated about a “successful management of the economy” by the Anastasiades-DISY government is not true, and that the so-called “success story” is just a myth.
More specifically, Cypriot households are the most indebted in Europe. Cypriot businesses, in particular SME’s, face serious problems of sustainability. Net private debt is at much higher levels compared to March 2013 that is at the time of the haircut on bank deposits. Illustrative of these catastrophic decisions taken by the Anastasiades-DISY government is the fact that although as a result of the haircut on bank deposits assets were removed from businesses and households, there wasn’t a corresponding reduction in loans. As regards non-performing loans, before the end of 2016 they reached € 24 billion or 48% of the total. These figures go along with those that were submitted from time to time to the relevant Committees of the House of the House of Representatives. If we also add to this picture the very low rate of loan restructurings and the start of foreclosures, then the prospects are not at all promising.
It is obvious that the government and ruling forces are either unable, or do not want to focus on the real problems citizens and SME’s are facing. In any case they have failed in addressing the problems of the real economy. A change of direction and a reorientation is required which the Anastasiades-DISY government of course can’t bring. That’s the reason why AKEL will begin working in this direction, namely towards achieving change.
With this opportunity AKEL informs that it is immediately commencing an open and frank dialogue all over Cyprus with figures and experts on economic issues.
