Scandalous additional borrowing of Cyprus’ bonds by the government

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

AKEL C.C. Press Office, 7th May 2014, Nicosia

Many questions are still unanswered after the scandalous action by the Anastasiades government to proceed to an additional borrowing in the form of the issuing of a Cyprus bond of €100m and indeed with an interest rate of 6.5%.

We repeat the following questions we have put forward in the hope that this time we will get answers:

1. How did the need arise for additional borrowing when the Government and the Troika assure the Government that the €7,5 billion of the program covers all the fiscal needs and the refinancing of the public debt by 2016?

2. How is it possible that the Government borrows at such an inadvisable rate of 6.5%, that is to say, 1.5% higher than the yielding our ten-year bond in the markets, at the same time when Greece with a bond yield of 6% is borrowing with a rate of 4.95%?

3. Why was the issuing of a bond to a single investment organisation chosen and who will anyway reap €40m from just one transaction?

4. At the end of the day isn’t this perhaps yet another public relations and communication type of action by the Government so as to submit to the people that it’s only a matter of time before Cyprus re-enters the international markets?

If this is indeed the case, then this reckless action is at the same time also a scandal, given that the cost is €40 million which in reality are granted to a profiteer.

AKEL, waiting for answers, denounces the Anastasiades government and the governing Rally DISY party who once again are sacrificing the public interest for the sake of petty pre-electoral expediencies.

Therefore, why should the Cypriot people pay the cost of a pre-election gimmick and game of DISY and the Anastasiades Government?