Justice Minister Ionas Nicolaou has denied there is any political pressure interfering with the investigation into the economic crash of 2013.

Responding to criticism from MP Nicolas Papadopoulos, the minister said that the investigation was launched immediately after the new government took office.

There are 30 investigators, including forensic accountants, looking into the mismanagement of the economy under AKEL.

Destitute families

In the wake of the economic crash, 59,000 people are receiving welfare payments in the form of the Minimum Guaranteed Income (MGI).

The MGI was introduced as part of a package to protect vulnerable social groups, like those with large families, low incomes or unemployed family members. The cost to subsidise the 35,100 families living on the edge of poverty is 860 million Euros per year.

The subsidy covers a monthly allowance, mortgage interest payments, municipal charges, emergency home repairs or replacement of household equipment, free medical care and a 20 percent discount on electricity bills.

The economy has slowly started recovering some of the losses seen during 2007-2013, but it is still a long way back to normal growth rates for Cyprus, which at the end of the day, will be the only way to revive the job market. When investors feel there are positive prospects for them to start new companies or hire more personnel, only then will unemployment see a significant fall.

Direct impact of the economic crash

The number of unemployed people and welfare recipients has skyrocketed since the economic and financial crash in 2013, while many lost their savings in the bank bond scandal, and others lost their jobs. The roots of the problem were the banks and state over-investing in worthless Greek Government Bonds, and corruption in the state on a massive scale. These weaknesses were exposed during the wider international economic slowdown and financial crises, and ordinary people suffered the most from the mismanagement.

Expert after expert warned the previous government about the dangers, but they were ignored or written off as greedy capitalists. At the end of the day, it was the communist party that was proven to be the most greedy of capitalists, with several of its members and allies now in jail on corruption convictions, and wasteful economic policies ending up as a bankrupted state which utterly failed its people. Part of the reason was bad administration and complete ignorance on how to run a modern economy.

On the bright side, the collapse gave the economy to start afresh and move forward with the EU’s guidance. But since the reform days of 2013, slowly the political parties AKEL and DIKO are trying to roll back the modernisations and get back to ‘business as usual’ by preventing the privatisation of expensive state-owned companies like the EAC and CYTA.

Fighting corruption

Major corruption scandals costing the economy millions of Euros and stemming from the previous government’s administration have also cost the state the public’s trust, and Anastasiades said he has zero tolerance for corruption. Prosecuting the financial scandals is difficult work, he said, adding that a team of 30 specialised investigators and forensic accountants are working on the cases to do with Bank of Cyprus and Laiki Bank. Seven countries are cooperating with information about the criminal cases, he said.

Two of the prime suspects in the collapse of Laiki Bank are expected to be extradited from Greece. Former CEO Efthymios Bouloutas and board member Markos Foros are set to be sent back to Cyprus to face trial over Laiki’s bankruptcy. A warrant for Laiki’s chairman Andreas Vgenopoulos is still being processed through Greece’s court system.

Since the crash, there are new laws to strength the state’s ability to confiscate assets gained through corruption, while protecting whistle-blowers. The number of reported cases in 2015 rose to 27 from 14 in 2014 and they are all under investigation.