Cyprus-Forum.com

[Paphitis]

Our economy can easily go the way of Greece. There are signs that should worry all serious people. Here is one indication. Greece has a public debt that touches 23 billion and Cyprus, with a much less population, has a public debt of 2.4 billion. Every year we borrow 2 billion just to pay the public sector. This is extremely worrying. and nothing is done about it. How long can we last?

I think you will find that the RoC will last a very long time. 2.4 Billion is chicken feed.

Not if all the other EU countries get in to the loans before we admit that we have a problem!

Admitting to a problem will have serious consequences, and our situation is not nearly as dire as it is in Greece, Portugal, Ireland, Spain or Italy.

If there is a deficit, then there are 2 options to consider:
1) Slash spending,
2) raise taxes, or
3) a combination of 1) and 2).

That is the easiest method in balancing the budget. Every country needs to do this from time to time. Even the wealthiest and strongest countries sometimes need to face some harsh realities. Things don't remain good forever. Economies are very cyclic, and the world is experiencing a minor meltdown at the moment, which could get worse before it gets better.

Cyprus, at the moment, has far less to worry about than other countries.

[Bananiot]

Only one way! Reduce spending, get the public servants to contribute towards their pension like all workers. 2.4 billion per year amounts to more than chichen feed. In fact it could become the downnfall of our economy.

[Paphitis]

Only one way! Reduce spending, get the public servants to contribute towards their pension like all workers. 2.4 billion per year amounts to more than chichen feed. In fact it could become the downnfall of our economy.

Yes, the RoC needs to stand up to the Public Sector Unions. This could resolve things very easily, but there will be widespread industrial action.

If that is not enough, they could cut more spending or raise taxes slightly.

Cyprus is far from economic crisis.

To put this into some context, ever since the Liberals were ousted in Australia, the budget deficit has been around 50 Billion per year!

[CBBB]

Only one way! Reduce spending, get the public servants to contribute towards their pension like all workers. 2.4 billion per year amounts to more than chichen feed. In fact it could become the downnfall of our economy.

I entirely agree! So we must vote for ZYGOS tomorrow.

[Viewpoint]

Nice to see someone with a level head who can see the problem and not just ignore it like the majority of GCs.

[Paphitis]

Nice to see someone with a level head who can see the problem and not just ignore it like the majority of GCs.

What problem?

If the RoC has a problem, then you pathetic existence is about to get much harder.

From my calculations, the Cypriot deficit is LESS than Australia's. No problem at all!

[Kikapu]

Nice to see someone with a level head who can see the problem and not just ignore it like the majority of GCs.

What problem?

If the RoC has a problem, then you pathetic existence is about to get much harder.

From my calculations, the Cypriot deficit is LESS than Australia's. No problem at all!

The RoC can afford to run a slight deficit at the moment and the fact that they can borrow the money easily to pay for things must tell that the lenders are fairly comfortable with it due to money to be generated in the future from Natural Gas and Oil for the RoC. It will be like taking a "equity loan" from the lenders which is a fairly risk free loans from the lenders.

[Paphitis]

Nice to see someone with a level head who can see the problem and not just ignore it like the majority of GCs.

What problem?

If the RoC has a problem, then you pathetic existence is about to get much harder.

From my calculations, the Cypriot deficit is LESS than Australia's. No problem at all!

The RoC can afford to run a slight deficit at the moment and the fact that they can borrow the money easily to pay for things must tell that the lenders are fairly comfortable with it due to money to be generated in the future from Natural Gas and Oil for the RoC. It will be like taking a "equity loan" from the lenders which is a fairly risk free loans from the lenders.

Manageable deficits are not a problem at all. These are difficult times, and for Cyprus to be considered one of the most risk free, and stable economies within the OECD is saying something.

A 2.4 Billion deficit is what I would call a very manageable deficit which will not create too many problems, And if the RoC does decide to overturn this deficit, then it is easily able to do so by introducing a Super scheme for public sector workers and get them to contribute to the scheme, as well as slashing expenditure, and introducing new taxes. Yes, these kind of measures are not popular, but any reasonable person would understand that such measures are sometimes very necessary.

For Cyprus to be considered the most stable and the best economy in the OECD is saying something. Cyprus is a very low risk economy, probably even considered to be a blue ribbon investment zone with minimal risk.

I won't be losing any sleep anyway!

[Kikapu]

Nice to see someone with a level head who can see the problem and not just ignore it like the majority of GCs.

What problem?

If the RoC has a problem, then you pathetic existence is about to get much harder.

From my calculations, the Cypriot deficit is LESS than Australia's. No problem at all!

The RoC can afford to run a slight deficit at the moment and the fact that they can borrow the money easily to pay for things must tell that the lenders are fairly comfortable with it due to money to be generated in the future from Natural Gas and Oil for the RoC. It will be like taking a "equity loan" from the lenders which is a fairly risk free loans from the lenders.

Manageable deficits are not a problem at all. These are difficult times, and for Cyprus to be considered one of the most risk free, and stable economies within the OECD is saying something.

A 2.4 Billion deficit is what I would call a very manageable deficit which will not create too many problems, And if the RoC does decide to overturn this deficit, then it is easily able to do so by introducing a Super scheme for public sector workers and get them to contribute to the scheme, as well as slashing expenditure, and introducing new taxes. Yes, these kind of measures are not popular, but any reasonable person would understand that such measures are sometimes very necessary.

For Cyprus to be considered the most stable and the best economy in the OECD is saying something. Cyprus is a very low risk economy, probably even considered to be a blue ribbon investment zone with minimal risk.

I won't be losing any sleep anyway!

I'm in an agreement with you, Paphitis.!

[Viewpoint]

Kikapu you would believe pigs fly if a GC told you.