Cyprus; Troika wants cuts of 925 mln euros

The Troika (IMF, ECB, European Commission) has asked the Cyprus' government to cut 925 million euros in its budget, according to a report on state radio. The Council of Ministers continues its discussions today on counter proposals to the Troika for another week after holding a meeting yesterday in Nicosia that was inconclusive. The government wants a multi-billion-euro bailout for the financial and state sector from the European Financial Stability Fund (EFSF). "The debate has not been completed, but the aim is to finish next Wednesday at 8.30pm ahead of a meeting set by the President with the parties next Friday at 5pm," said government spokesman Stefanos Stefanou. The package aims at reorganising the economy by tackling structural problems and distortions that have accumulated through the years, said the spokesman. Secondly, it aims to support development and thirdly, social cohesion, he said. The government wants to protect pensioners and other vulnerable groups, and will continue to work to support the welfare state, said Stefanou. The spokesman did not go into details, saying the package has not been finalised. No date has been set yet for the Troika's return, and Stefanou said that any loan received from the European Financial Stability Fund (EFSF) would have a time horizon of several years for repayment. There are various estimates about how much Cyprus' bailout will be, ranging from 10 to 15 billion euros, but so far there has been no official confirmation.