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INT'L CYPRUS BAILOUT EFFORTS THROWN INTO DOUBT AS PRIVATISATION BILL FAILS
February 28, 2014 - 15:53 AMT
PanARMENIAN.Net - International efforts to bail out Cyprus' debt-laden
economy have been thrown into doubt after its parliament rejected a
key part of the plan, BBC News reported.
As part of the 10bn-euro ($13.7bn) deal with the EU and International
Monetary Fund, lawmakers have until 5 March to pass a bill allowing
state firms to be privatised.
But on Thursday, Feb 27 they threw it out, jeopardising the next
tranche of cash.
The government says it will re-submit the bill with some amendments.
The deal was agreed in March last year in an attempt to stave off
the collapse of Cyprus's banking sector and the wider economy.
It included moves to restructure the banks, along with other measures
such as tax rises and privatisations.
Late on Thursday, the privatisation bill was narrowly defeated after
parliament split 25-25 on the vote, with five abstentions. This meant
the legislation failed to pass.
The vote took place as hundreds of people opposed to privatisation
staged a protest outside the parliament building.
A government spokesman, Christos Stylanides, said the bill would be
amended to reflect concerns over workers' rights after privatisation.
He said the new version would be submitted to the House of
Representatives on Friday.
February 28, 2014 - 15:53 AMT
PanARMENIAN.Net - International efforts to bail out Cyprus' debt-laden
economy have been thrown into doubt after its parliament rejected a
key part of the plan, BBC News reported.
As part of the 10bn-euro ($13.7bn) deal with the EU and International
Monetary Fund, lawmakers have until 5 March to pass a bill allowing
state firms to be privatised.
But on Thursday, Feb 27 they threw it out, jeopardising the next
tranche of cash.
The government says it will re-submit the bill with some amendments.
The deal was agreed in March last year in an attempt to stave off
the collapse of Cyprus's banking sector and the wider economy.
It included moves to restructure the banks, along with other measures
such as tax rises and privatisations.
Late on Thursday, the privatisation bill was narrowly defeated after
parliament split 25-25 on the vote, with five abstentions. This meant
the legislation failed to pass.
The vote took place as hundreds of people opposed to privatisation
staged a protest outside the parliament building.
A government spokesman, Christos Stylanides, said the bill would be
amended to reflect concerns over workers' rights after privatisation.
He said the new version would be submitted to the House of
Representatives on Friday.