Cyprus-Forum.com

[CBBB]

Our old friend Olli Rehn speaks out on the Cypriot economy....

Cyprus's economy is 'sound'

Olli Rehn seeks to allay fears that island may need bail-out; calls for reform as president reshuffles government.

The economy of Cyprus is fundamentally sound even though its public finances are in need of urgent reform, Olli Rehn, the European commissioner for economic and monetary affairs, said in Brussels today (5 August). Rehn denied that the island's economy was overly exposed to the situation in Greece.

Rehn's comments came hours after Demetris Christofias, the president of Cyprus, reshuffled his government following the collapse of the ruling coalition. Christofias, a Communist, will now need to secure the support of the centre-right opposition for a new austerity package.

“Cyprus has overall sound fundamentals,” Rehn said. “While the Cypriot banking sector is large in size relative to the economy, Cypriot banks are well-capitalised and supervised.”

Rehn said that any private-sector involvement in bailing out Greece would have a manageable impact on the Cypriot banking sectors. “Domestic banks have sufficient capital buffers to absorb expected losses, much of which has in fact already been provisioned,” he said. “The impact on subsidiaries of Greek-owned banks in Cyprus has also been foreseen in the new programme for Greece.”

But Rehn warned Cyprus's new government that it had to take “upfront expenditure-based consolidation measures”, reducing the budget deficit by 2012 and adopting a binding, multi-annual budget law.

He said that Cyprus should also accelerate structural reforms to boost growth and competitiveness. He said it was of the “utmost importance” to reform the pensions and health-care systems and wage indexation.

Rehn said that he would speak later today to Kikis Kazamias, Cyprus's new finance minister. He said that he wanted to discuss the “need for the new government to take immediately upfront, expenditure-based measures of fiscal consolidation to assure everybody that Cyprus is on a sustainable fiscal path”.

http://www.europeanvoice.com/article/20 ... 71831.aspx

Knowledgeable fellow, he knows even less than our president!

[Hermes]

Our old friend Olli Rehn speaks out on the Cypriot economy....

Cyprus's economy is 'sound'

Olli Rehn seeks to allay fears that island may need bail-out; calls for reform as president reshuffles government.

The economy of Cyprus is fundamentally sound even though its public finances are in need of urgent reform, Olli Rehn, the European commissioner for economic and monetary affairs, said in Brussels today (5 August). Rehn denied that the island's economy was overly exposed to the situation in Greece.

Rehn's comments came hours after Demetris Christofias, the president of Cyprus, reshuffled his government following the collapse of the ruling coalition. Christofias, a Communist, will now need to secure the support of the centre-right opposition for a new austerity package.

“Cyprus has overall sound fundamentals,” Rehn said. “While the Cypriot banking sector is large in size relative to the economy, Cypriot banks are well-capitalised and supervised.”

Rehn said that any private-sector involvement in bailing out Greece would have a manageable impact on the Cypriot banking sectors. “Domestic banks have sufficient capital buffers to absorb expected losses, much of which has in fact already been provisioned,” he said. “The impact on subsidiaries of Greek-owned banks in Cyprus has also been foreseen in the new programme for Greece.”

But Rehn warned Cyprus's new government that it had to take “upfront expenditure-based consolidation measures”, reducing the budget deficit by 2012 and adopting a binding, multi-annual budget law.

He said that Cyprus should also accelerate structural reforms to boost growth and competitiveness. He said it was of the “utmost importance” to reform the pensions and health-care systems and wage indexation.

Rehn said that he would speak later today to Kikis Kazamias, Cyprus's new finance minister. He said that he wanted to discuss the “need for the new government to take immediately upfront, expenditure-based measures of fiscal consolidation to assure everybody that Cyprus is on a sustainable fiscal path”.

http://www.europeanvoice.com/article/20 ... 71831.aspx

Knowledgeable fellow, he knows even less than our president!

Don't believe the hype. Olli Rehn speaks sense. For once.

[supporttheunderdog]

While Olli Rehn may be speaking sense clearly the rating agancied do not agree with Fitch taking Cyprus down to BBB, probably on the basis that the Government is patently incapable of of dealing with the fundemental problem of excessive government spending, and is simply papering over the cracks by upping income, in a way that will be mainly at the expense of the less well off and which will damage the private wealth creating sector!

For a balanced observation check the following

http://www.financialmirror.com/news-details.php?nid=24154

As a start COLA must go and the Civil servants must be put on an equal footing regarding Social fund payments and pension contributions to private sector workers.

[CBBB]

While Olli Rehn may be speaking sense clearly the rating agancied do not agree with Fitch taking Cyprus down to BBB, probably on the basis that the Government is patently incapable of of dealing with the fundemental problem of excessive government spending, and is simply papering over the cracks by upping income, in a way that will be mainly at the expense of the less well off and which will damage the private wealth creating sector!

For a balanced observation check the following

http://www.financialmirror.com/news-details.php?nid=24154

As a start COLA must go and the Civil servants must be put on an equal footing regarding Social fund payments and pension contributions to private sector workers.

Having watched a discussion on the RIK1 lunchtime program Από Μέρα Σε Μέρα (from day to day) with 3 of the union leaders yesterday, the only way to get any of the things you mentioned implemented is to pass legislation without discussing with them. The house can do this and pass it, but Toff will reject it. I am not sure if he can do that indefinitely though, let's hope not.

You can watch the program here, but it is in Greek. http://www.cybc.com.cy/tv/index.php?opt ... Itemid=235

[Viewpoint]

What is the South Cyprus new grading???

[Viewpoint]

(Reuters) -S&P cuts South Cyprus rating to BBB+ on fiscal worries

Standard & Poor's cut South Cyprus's credit rating by one notch on Friday and warned another cut was possible, deepening economic gloom for the island struggling with its worst peacetime disaster and mounting speculation it might be forced into an EU bailout.

[CBBB]

(Reuters) -S&P cuts South Cyprus rating to BBB+ on fiscal worries

Standard & Poor's cut South Cyprus's credit rating by one notch on Friday and warned another cut was possible, deepening economic gloom for the island struggling with its worst peacetime disaster and mounting speculation it might be forced into an EU bailout.

Still not as low as Turkey.

[Viewpoint]

(Reuters) -S&P cuts South Cyprus rating to BBB+ on fiscal worries

Standard & Poor's cut South Cyprus's credit rating by one notch on Friday and warned another cut was possible, deepening economic gloom for the island struggling with its worst peacetime disaster and mounting speculation it might be forced into an EU bailout.

Still not as low as Turkey.

Not far off??? and you an EU member state.

[CBBB]

(Reuters) -S&P cuts South Cyprus rating to BBB+ on fiscal worries

Standard & Poor's cut South Cyprus's credit rating by one notch on Friday and warned another cut was possible, deepening economic gloom for the island struggling with its worst peacetime disaster and mounting speculation it might be forced into an EU bailout.

Still not as low as Turkey.

Not far off??? and you an EU member state.

And Turkey is never going to be one! Sorry, I forgot, they don't really want to join the EU, that is why they appointed a Minister to specifically chase their membership.

[Viewpoint]

Its all show.....you know my views on Turkeys EU membership I have viewed them enough times.

The real joke is you people, what happens to your leverage if turkey does not want EU membership? where it is today nowhere me thinks.