The market needs oxygen, FinMin says

The market needs oxygen, Finance Minister Constantinos Petrides said Monday, stressing that the least citizens expect from politicians is to reach a consensus in order to support the economy in line with a prudent policy without placing it in further danger.

Petrides was replying to a question posed by the Cyprus News Agency on the outcome of consultations on Monday via teleconference with the parliamentary committee of financial and budgetary affairs on four bills which aim to support the Cypriot economy.

The discussion took place “in a positive climate,” he said, expressing the view that “we are close in reaching a parliamentary majority in order for an extremely important package in support of Cypriot businesses to be approved.”

Referring to a bill on government guarantees for bank loans to businesses, Petrides said that “we have included as many political party proposals as we could.” MPs put forward a number of issues which will be discussed again when the committee is convened later on this week, he added.

The Finance Minister went to say that during the meeting, matters were raised which are not in line with the bill’s philosophy nor the European Commission’s framework.

The guarantees scheme, he explained, constitutes an incentive in order for credit institutions to allocate part of their liquidity to businesses under favourable conditions, as defined by the European framework, reducing banks’ risks because otherwise under current conditions liquidity would have not been made the most of.

The state, he explained, cannot substitute financial work nor can it take away the liquidity of banks and use it. The scheme, he noted, “must and can work.”

The bill’s second part, he added, “has to do with the government implementing its commitment for flexibility and continued fiscal support, always within its capabilities.”

This support, Petrides stressed, “is very important for small entrepreneurs.”

The government, he said, “has shown its good will and the discussion must soon be completed.”

“The market needs oxygen, while the least citizens expect from politicians is to reach a consensus in order to support the economy in line with a prudent policy without placing it in further danger,” Petrides pointed out.