Greek Cyprus 2014 budget deficit to beat bailout target
NICOSIA – Associated Press
Demonstrators with banners showing unemployment and poverty figures of EU member countries, as they gathering outside of the presidential palace during the meeting between EU President Herman Van Rompuy and Greek Cyprus' President Nicos Anastasiades in the capital Nicosia on Tuesday, Oct.15, 2013. AP photoGreek Cyprus' finance minister says the budget deficit is next year forecast to beat the target outlined in the terms of the country's bailout.
Harris Georgiades told lawmakers Monday that tough spending cuts will bring the 2014 budget shortfall to 7 percent of gross domestic product, lower than the 8.25 percent that Greek Cyprus' eurozone partners and the International Monetary Fund have set.
Greek Cyprus was granted in March a 10 billion-euro ($13.68 billion) loan to avoid bankruptcy, but forced uninsured savers in the country's two biggest banks to take major losses on their savings. Authorities also imposed controls on the flow of capital to prevent a bank run.