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Troika expected in Cyprus 27 Jan

The Troika of Cyprus’ international lenders – the European Commission, European Central Bank and the International Monetary Fund – are expected to return to Cyprus on 27th January.

A TROIKA delegation is set to return to Cyprus within weeks, after international lenders suspended Cyprus’ bailout review in September, pending the passing of foreclosure legislation.

“Technocrats from the Troika will be in Cyprus from January 27 and heads of mission will arrive on February 1 – at the end of the suspension of the foreclosure legislation,” a source within the Finance Ministry told The Cyprus Weekly.

Implementation of the foreclosure legislation means the International Monetary Fund (IMF) can finally release the €86 million, withheld from the Cyprus bailout programme. It will also renew government attempts to return to international market that were twice delayed during controversy over foreclosure legislation.

The complications began on September 6, 2014, when opposition parties added six amendments to the legislation for the protection of creditors – despite the fact that international lenders had made it clear that the amendments were unacceptable. President Anastasiades referred all six changes to the Supreme Court, receiving favourable rulings for four, with parliament accepting to overrule a fifth. The Troika agreed to turn a blind eye on the remaining amendment.

Three days later, Cyprus received €350 million from the European Stabilising Mechanism (ESM) on the condition that there would be no more delays with the foreclosure legislation.

“The government should have returned the [ESM] money,” said Professor Theodoros Panayiotou, who teaches business ethics and is a director of the Cyprus International Institute of Management.

Opposition parties maintained that the government’s failure to simultaneously introduce the insolvency and foreclosure legislation would have left creditors unprotected from the banks and suspended the legislation until the end of January, giving the government time to present the whole package of insolvency legislation to the parliament.

The government rejected the argument that creditors were left unprotected.

Finance Minister Harris Georgiades slammed the suspension of the legislation, describing it as an “unnecessary and unjustified act”.

In an effort to reach an acceptable solution for all, President Anastasiades yesterday met Interior Minister Socratis Hasikos and Georgiades. Anastasiades has already expressed his determination to ensure parliament approves the foreclosure law before January 30.

At the January 12 party leaders meeting Anastasiades will attempt to secure majority support in parliament to back the bailout programme, by offering parties the chance to re-join his administration. DIKO and AKEL have already publicly turned down his proposal.

Readers' comments

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  • Denton Mackrell says:

    @Hani Chehaiber. I’m with Mike on this. Putin has stated very clearly that Russia and the Russian energy sector are not interested in any engagement (financial, economic or otherwise) in any potential gas or oil from Cyprus. Since the growing financial crisis in Cyprus started in 2011/12, Russia has shown no appetite for bailing out Cyprus, apart from a 2bn gesture loan. Russia’s own economy and nose-diving currency are also now in such dire straits that it is inconceivable they would want to engage in some kind of pointless rescue of Cyprus after rebuffing it for several years.

    At best, Russia like many other countries regards Cyprus as little more than an annoying chronic pimple on the backside of Europe. It does not constitute either a life-threatening disease or a source of persistent pain, so little dabs of soothing placebo ointment are applied occasionally with absolutely no expectation of a cure but it keeps it from being too much of a nuisance.

  • Mike says:

    “Leave the Euro zone, leave Europe”? I think someone doesn’t have a grasp of the consequences. I cannot see that the population will put up with the buying power of an almost worthless pound. As for Mr Putin being a saviour – I think his and Russia’s interests are best served by protecting Turkey as are the interests of USA, UK and probably the majority of EU states.

    Trade and commerce takes priority over any human rights issues it seems, as has adequately been illustrated throughout recent history.

  • Steve R says:

    “The government should have returned the [ESM] money,” said Professor Theodoros Panayiotou,

    Now can you imagine that happening. That money will be long gone and the fat cats will have got fatter. Cyprus needs a clear-out of all the government officials and it needs to start again. Are Troika going to ask questions about where over 300 million Euro has gone since September, if not they should do. In other countries around the world young and old are standing up to the government but in Cyprus they just shrug their shoulders and say nothing. What a mess.

  • hani chehaiber says:

    Cyprus joind the European union in fear of the Turks ,
    What did Europe do when the Turkish ship came? Leave Europe
    Your only True Savior is PUTIN and only PUTIN wake up….

  • Hani Chehaiber says:

    Better late than never, just leave the Euro Zone for once take your decision into your own hands…

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