Christofias Attacks Financial Markets As "Thieves"
President Demetris Christofias said that the international capital markets are 'arch-thieves' amid continuing downgrades from international rating agencies and a loss of confidence by international investors in the economy.
Due to high borrowing costs based on its declining credit rating and rising deficit, Cyprus does not currently have access to international markets from where it normally draws funds to run state operations and finance development. The Treasury has turned to Russia for the first time, and has signed an agreement for a 2.5 billion-euro loan. Finance Minister Kikis Kazamias is in Russia to sign the agreement and the first installment of 590 million euros is expected by the end of the year.
After Christofias' outburst against what he called 'the so-called international markets', DISY MP Averoff Neophytou dryly asked why the government wants to return to the markets if they are 'thieves'.
Opposition party DISY intervened last month to make an agreement with Christofias for a package of austerity measures after Economy Commissioner Olli Rehn warned that unless Cyprus cuts its deficit, it will face penalties.
Christofias and his communist ruling party AKEL has lost a considerable amount of popularity due to a clear lack of understanding of state fiscal finances and knowledge of economics. The president's latest, unwise comments only serve to highlight that lack of knowledge.
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