Government funds not unlimited, Finance Minister warns

Finance Minister Constantinos Petrides said Monday that the government does not have unlimited funds with which to support the local economy during these tough times.

In a meeting on Monday, political party leaders were briefed on the island’s economic situation amid the coronavirus pandemic by the Finance Minister and Cyprus Central Bank Director, Constantinos Herodotou.

In statements after the meeting, chaired by President Nicos Anastasiades, Petrides said that “the government's fiscal support package, with the expansion of some plans for May and June, now reaches 5.4% of GDP or €1.32 billion, exceeding the European average of 3% of GDP, according to the latest Eurogroup figures.”

Petrides stressed that the situation is a difficult one, and the government’s funds for cushioning the blow are not unlimited.

The Finance Minister highlighted that these times of crisis require the highest degree of unity and responsibility among the political leadership and the government, which will in the coming days be looking over economic support proposals submitted by political parties.

“The economy’s recovery potential depends on the period for which it will remain inactive,” Petrides said, adding that Cyprus “is among the EU Member States which took the strictest of measures to limit the loss of human lives and a severe blow to the economy.”