How is it these guys with all the information available to them, cannot see that they have screwed up, they are in a hole and they have now struck quicksand.
CYPRUS will default within the next few days unless the additional financing needs until the end of the year are met, Finance Ministry Permanent Secretary warned on Monday.
Christos Patsalides attended a meeting of the Parliamentary Committee of Financial and Budgetary Affairs, which discussed the government’s request for a loan from its profit-making semi-state organizations, Cyprus Telecommunications Authority (Cyta) and Cyprus Port Authority (CPA), which would assist the state to cover its operational expenses and mainly to pay the 12th the 13th salary in the public sector.
CPA already decided to grant the government with a loan of 38 million plus a further €12 million if needed, whereas Cyta decided to lend the government with €100 million from the employees pension fund, which sparked reaction among the Cyta employees.
"If these additional financing needs are not met we will be talking about a default within the coming days," Patsalides said, adding that such possibility will drag the semi-governmental organizations along as the state will be downgraded to the level of selective default, which would in turn mean the annulment of the state guarantees for loans made by semi-governmental organizations.
He called on every one to realize the critical situation Cyprus is facing and to grant the loans requested by the government, adding that all other alternatives have been either exhausted or cannot be implemented.
Patsalides said that the government needs to secure €420 million until the end of December, adding so far €170 million have been secured from other internal sources. Hence, he said, the shortfall is currently at €250 million.
So if the SGO's don't pay up then all bets are off and they loose their bank/state Guarantees, but if they pay up now, next month the begging bowl will be out again for another handout guaranteed by the state or else.
Blackmail achieved, Ports Cyta and EAC pensions are now at risk.
Merry christmas state employees!
THE ELECTRICITY company (EAC) last night approved a state request for a €100 million loan following a stark warning that without the cash the government would default in the next few days.
“If these additional financing needs are not secured we will be talking about a state default in the next few days,” finance ministry permanent secretary Christos Patsalides told the House Finance Committee earlier yesterday.
Patsalides said this would also drag semi-government organisations under, since it would put the state into selective default and annul any guarantees given to them.
Telecommunications company CyTA had already agreed to lend the state €100 million - through three-month bonds - on condition that the
Not sure about blackmail, but economic meltdown now seems inevitable here.
What I am not clear on is how this will affect us British Expat retirees here???
Cheer up Geoff, you are getting the winter fuel allowance
That's the good news, along with my Christmas Bonus, but how about answering my question?
Enjoy it while it lasts ! Heard on the radio today that the Tories are planning to do away with age related winter fuel allowances, bus passes and free prescriptions.
Well not quite correct, it was Nick Clegg suggesting it and that it should be means tested. Another rift in the coalition Govt!
What he did NOT say was what the threshold would be, but on my income means testing don't bother me! I would still get it.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum