Nicosia.- Cyprus dismissed as completely unfounded press reports that it will follow Greece out of the eurozone in case of a Greek exit. “This is outrageous, an absolute nonsense,” said Finance Minister Harris Georgiades on Saturday, commenting on a report in the German Der Spiegel Magazine.

Der Spiegel claimed that Eurogroup finance ministers discussed an extreme scenario about Greece leaving the eurozone at their meeting in Brussels on Wednesday. It added that in such a case Cyprus will follow suit because of its close economic connections with Greece, saying “more likely Cyprus will receive additional financial assistance from Eurozone members.

It quoted unidentified sources as saying that the exit of the two countries from the euro would be manageable. But ESM head Klaus Regling told the magazine the withdrawal of both countries may have a negative impact on all members of the monetary union. Even the withdrawal of Greece alone would be very “high-cost” for all eurozone states,

“The Eurogroup meeting did not even touch upon the possibility of Greece exiting the euro, not even in private conversations between the ministers. Much more they did not discuss the prospect of Cyprus leaving the eurozone,” Georgiades said.

“This possibility will never come up,” he added.

KASOULIDES

Foreign Minister Ioannis Kasoulides has expressed the view that Cyprus can exit the bail-out programme it has agreed with its international lenders (EU Commission, IMF and ECB) by the end of the year, if it makes the right moves.

“If we act correctly, we can enter the markets very soon with our bail-out programme ending by the end of this year”, he told reporters.

Speaking after visiting the secondary school he had attended, the Pancyprian Gymnasium where he talked to students in the framework of the European project “Back to School”, Kasoulides said Cyprus should be patient and now is not the time to ask for a re-negotiation of its memorandum.

Regarding Monday`s Eurogroup meeting, the Foreign Minister wished for an agreement, saying it could pave the way for all sides to achieve understanding.

Kasoulides said criticism should not be directed against Greece only but it should also question the Eurozone`s current situation. He said other robust EU countries can fall into the same situation if they do not take measures in good time.

Excluded from the financial markets since May 2011, Cyprus concluded in March 2013 with the EU and the IMF on a €10 billion bailout to avert the collapse of its banking sector and cover its financing needs.

Regarding the agreement reached for a ceasefire in Ukraine, Kasoulides congratulated the governments of France and Germany but also the Presidents of Russia and Ukraine.

He expressed the hope that what was yesterday agreed will be implemented and there will be an end to the problems in Ukraine.

RESTRICTIVE MEASURES LAXED

The Finance Minister issued on Friday a new decree relaxing restrictive measures on banking transactions.

Based on the 34th decree, the limit for transfers of deposits and funds outside Cyprus increases from €20.000 to €50.000 per month, per person for each credit institution, regardless of the purpose.

The Minister also issued the 27th decree for transactions of foreign banks which remains unchanged from the previous decree.

The two decrees will apply for a twenty eight day period starting on the 16th of February.

The controls were imposed to prevent a run on the banks after Cyprus agreed in March 2013 on a multibillion-euro international rescue plan that mandated a raid on uninsured deposits in the country`s two top lenders.

AKEL’s REACTION

In its statement-decision issued on 12th February, the European People’s Party (EPP), to which the governing DISY Rally party is affiliated to and whose session was attended by President Anastasiades, sees economic growth and unemployment falling in the Greece of the Memorandum and insists on pursuing this policy, indeed characterizing it as an “accomplishment”.

In a statement, AKEL said “This is a great provocation, not only for the Greek people who recently with their verdict condemned these very policies, but also for all the peoples who are under the yoke of a Memorandum. At a time when such kind of programs have forced brutal impoverishment, the increase in unemployment and underdevelopment, the EPP Group, but evidently DISY and the President of the Republic too, carry on implementing the same policies. Furthermore, the President of the European People’s Party Manfred Weber insists in his interventions in the European Parliament on the position that Greece’s current economic program must continue, questioning once again the democratic choice made by the Greek people.”

“AKEL supports the Greek government’s efforts to get rid of the Memoranda austerity policies, as well as every effort on both a European and domestic level that will lead to the rupture with the policies of impoverishment of the peoples to serve the interests of a handful of monopolies. Our struggles and initiatives, both in the European Parliament and in Cyprus, are towards this end.”