“There has been huge progress,” the minister said, but Cyprus has not yet rid itself from the need to be financed by the Troika.

“We are working towards this direction, the prospects are being created that will allow us to stand on our own feet and have no need for this dependency soon, sooner than initially expected,” Georgiades said.

The minister urged MPs to take the decisions necessary to allow continuation of the financing and avoid reliving extreme situations.

The minister was referring to foreclosures-related legislation, which opposition parties insisted on passing despite being told they were incompatible with the terms of the bailout.

Georgiades said he hoped bank stress tests would not be affected by the foreclosures spat.

“I hope there will not be any negative consequence,” he said, adding that there was no sign of such a development.

Georgiades also expressed his satisfaction with the civil servants’ decision not to stage a strike after the government assured them it would not tax their retirement bonuses.

The minister rejected suggestions he had caused the crisis himself, saying that the public sector union PASYDY already knew of the matter.

“What we have caused is the necessary dialogue on matters judged to be potential risks to the viability of state finances,” he said. “The president informed the PASYDY leadership a few weeks ago.”

After the necessary explanations were given, the two sides will now start a dialogue on the matter as well as issues related with social allowances, pensions, and worker contributions.

“These are issues, which we want to study further, prepare alternatives, which we will set on the table,” he said, adding that solutions would not be temporary.

“These are structural matters that aim at securing the viability of the state finances,” – their ability to support growth, social cohesion, and the payroll and pensions.

“Distortions must be assessed, discussed and decisions must be made,” the minister said.

Source: Cyprus Mail