Cyprus Parliament on Thursday failed to adopt a controversial privatization plan, potentially throwing into disarray an international bailout programme of the island and endangering the next tranche of a €10bn loan.
As hundreds of protesters demonstrated outside parliament, the vote was split evenly, with 25 lawmakers in favour and 25 against, and five abstentions. The bill needed a simply majority to pass. AKEL, EDEK and the Greens voted against.
Approval of a privatization plan is mandatory under terms of an EU/IMF bailout Cyprus secured in March 2013. Without approval of the legislation, Cyprus is not eligible for a fourth tranche of about €236m in aid next month. The state has already received almost half its bailout amount.
As part of its commitments to pay down debt, Cyprus is expected to privatize three major public utility corporations, raising some €1.4bn by 2018. Those earmarked for sale include the Telecommunications Authority, the Electricity Authority and the Ports Authority.
Govt. to re-sumbit privatisation bill to parliament
The government will re-submit privatization legislation to parliament, the spokesman said on Friday, a day after lawmakers rejected the road map and put an international bailout programme at risk.
Government spokesman Christos Stylianides said legislation, amended to accommodate concerns over workers legacy rights, would be submitted to the House of Representatives on Friday.
Shortly afterwards, President Nicos Anastasiades used his Twitter account to state that he was “determined to keep the country on the path of stabilisation and recovery.”
Cyprus has been divided since 1974 following a Turkish invasion after a coup led by supporters of the island’s union with Greece.
(source: cyprus-mail)
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