Not passing the bill on repossessions, they say, could jeopardise the release of the next tranche of international aid to the bailed out island.

Speaking after a meeting between the Troika mission and DISY leader Averof Neophytou, DISY spokesman Prodromos Prodromou said that while Cyprus has achieved much, there is still a long way to go.

“During our meeting with the Troika, it became obvious that in order to talk about growth margins, reforms will need to have been completed first,” Prodromou said. “There are reforms that we need to pick up the pace on, like restoring the functioning of the banking system and reforming the entire public sector.”

The repossession bill, along with a second bill governing insolvency, are designed to address the issue of mounting non-performing loans (NPLs) which threatens to incur huge losses to banks and suffocate the banking system. NPLs currently stand at 47% of all outstanding loans, and in its last review the Troika deemed their rising number the “single greatest challenge currently facing the Cyprus economy.”

Speaking after a meeting with the Troika mission earlier in the day, EDEK deputy Nikos Nikolaides said the delegates were clear that they would be unable to conclude the review if the repossession bill was not passed through the House of Representatives this month. The on going progress review of Cyprus’ adjustment programme is the Troika’s fifth, and is scheduled to be concluded on July 25.

But Nikolaides said at least one piece of good news had also come out of the meeting.

“We identified the Troika’s willingness to discuss passing the repossession bill while exempting primary residences, which would be left to tackle at a more suitable time – possibly near the end of the year, along with the insolvency bill,” he said.

Voting on the bill would require convening an extraordinary plenary session as the House is in recess due to the summer break.

EDEK leader and House president Yiannakis Omirou said that if the executive were to submit an urgent bill, parliament would examine whether the bill warrants convening a special session.

“If there are urgent bills relating to the country’s economic situation, the House will respond positively,” Omirou said. “However, it will first need to be submitted and presented before us.”

Meanwhile, a team from the Troika’s Cyprus mission met with the management of Cyprus Airways and was briefed on the latest developments relating to the company’s financial state, as well as its prospects of attracting a strategic investor.

The troubled national carrier placed advertisements in yesterday’s newspapers inviting expressions of interest from potential investors by next month, for an initial decision to be taken in Cyprus. The airline plans to sell its 94% stake in the airline and rescue it from collapse.

A meeting followed withHealth ministry officials regarding planned actions with regard to the National Health Scheme (NHS). The Council of Ministers yesterday approved the computerisation of systems in all public medical facilities, as well as the roadmap to the implementation of the NHS.

“The roadmap includes roughly 200 actions that are strictly timed that will radically overhaul the health system over the next three years, which will facilitate implementation of the NHS,” Health minister Philippos Patsalis said.

The Cyprus Investment Promotion Agency (CIPA) was next on the Troika’s schedule. In this meeting, CIPA head Christodoulos Angastiniotis laid out prospective investments underway and raised the issue of understaffing at the Cyprus Securities and Exchange Commission (CySEC).

The economy’s recovery and growth cannot rely solely on foreign investors and part of the bailout money should be used to develop the economy and in particular the private sector, officials from the employers and industrialists federation (OEB) said during their discussions with Troika officials.

In an announcement, the employers’ federation said the two parties discussed the competitiveness of local businesses, for which the biggest concern is the lack of funds.

Another problem raised was the government bureaucracy that businessmen are dealing with when it comes to investments.

“It is unacceptable to need 15 licences and permits to conclude the simplest project,” OEB’s general manager Michalis Pilikos said.

Later in the day, Troika delegates met with the accountants’ association to discuss issues relating to monitoring money laundering, and the day was concluded with meetings with the Cyprus chamber of commerce and CySEC.

Source: Cyprus Mail