“We can turn the crisis into opportunity,” Anastasiades noted during an exclusive interview recently aired on public broadcaster CyBC. The recent upgrading of the island’s credit rating by Standard & Poor’s – coming on the back of a succession of downgrades – a 10% decrease on yield spreads for treasury bonds, mirroring less risk, and positive reviews of Cyprus’ economic adjustment programme, were all optimistic developments. In the interview, Anastasiades sought to convey confidence amid the doom and gloom gripping Cypriots, bracing for at least two more years of deep recession.

The President dismissed the implied notion that he is agreeing to the demands of the troika without putting up a fight. And he went on to challenge detractors – bemoaning the troika’s diktats – to propose how otherwise Cyprus can stave off financial ruin. “Where else are we going to get the money from?” he asked, alluding to the €10b rescue package given by international creditors in exchange for far-reaching fiscal reform and spending cutbacks.

Anastasiades refused to be drawn on whether privatisation of semi-state enterprises – stipulated in the deal with the troika – is a one-way street. According to the terms of the bailout, Cyprus must raise some €1.4bn from privatisations between 2016 and 2018. But he partially revealed his cards by saying that state utilities – such as electricity and telephony – are clearly inefficient, something evidenced by the high rates charged to consumers. He added, however, that outright denationalisation could be avoided, for example through issuing less than 50% of shares of SGOs and making these available to their employees and even to the general public.

On the spectre of foreclosures on mortgaged homes, the President said that the government is taking steps to ensure that does not happen. “No one will lose their primary residence,” he pledged. One scheme under consideration was to allow home owners to turn tenants, paying rent that would be used as instalments toward paying down a mortgage.

On the financial debacle that led Cyprus to the brink of collapse, Anastasiades said the blame primarily lay on the banks, and to a lesser degree on irresponsible fiscal policies – evidently referring to the previous administration. He revealed also that a police investigation into the debacle might be completed by June. But he advised patience, saying that authorities must gather evidence that can stand up in court. The President declined to comment on a criminal probe into the dealings of the Central Bank with foreign consulting firms.

Source: Cyprus Mail