The tragedy at the Cyprus Naval Base caused greater damage than what was thought. It is estimated that Cyprus will have to pay 2 or 3 billion euro.
Before the fatal explosion, the Minister of Economics Charilaos Stavrakis had predicted a rate of development of 1.5 % of the Gross National Product in 2011 and even higher in 2012. However, it is now estimated that the current year’s rate of development will be 0% and will drop below 0 in 2012.
The Cypriot government is ready to impose austerity measures so that the economy will recover.
The central banker of Cyprus Athanasios Orfanidis, warned that the state of economy is as bad as in 1974 and invites the government to take measures immediately to avoid the need for an economic support mechanism.
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