Public debt rises to € 22bn in order to rescue a private bank

Statement by AKEL C.C. Spokesperson, Stefanos Stefanou

On the sharp increase of the deficit in the third quarter of 2018

AKEL C.C. Press Office, 22 January 2019, Nicosia

The Statistical Service announced yesterday that for the first nine months of 2018 a fiscal deficit of € 723 million has been recorded as a result of the agreement to sell the Cyprus Cooperative Bank to the Hellenic Bank. The overall financial impact has amounted to € 1.5 billion.

The Statistical Service’s announcement highlights the Government’s grave responsibilities for this state of affairs. The bad management, the erroneous negotiation and the government’s agreement with the Hellenic Bank has shifted the losses/burden on society and gave away the profits to the bank through state subsidies.

The government and ruling forces have once more been caught lying. They were assuring the House of Representatives that the impact on public finances and debt from the agreement would be minimal, but in the end they dissolved the Cyprus Cooperative Bank and raised the public debt to € 22bn in order to rescue a private bank.

It is now self-evident and obvious that the government and ruling forces are putting their hands in taxpayers’ pockets and subsidising private banks.