Crisis: Cyprus gov't seeks money to meet December payroll

17 December, 12:49

(ANSAmed) - NICOSIA, DECEMBER 17 - With state funds drying up, the Cyprus' government spokesman Stephanos Stephanou called on semi-governmental organizations to lend the Government money from their employee's pension fund to pay public sector's salaries in December, as Famagusta Gazette reports today. The search for much-needed cash comes after it was announced that a bailout package for Cyprus will not be finalized before mid-January next year. The state has to come up with approximately 400 million euros this month to meet its payroll obligations and expects most of this sum from profitable semi-government organisations (SGOs) in the form of loans. ''In these difficult times the state seeks a three-month loan that will refund with interest,'' Stephanou told reporters. Asked whether public servant's salaries for December might not be paid if the trade unions of the SGOs won't consent in lending the money, Stephanou said the SGO needed to show a sense of responsibility towards the state. ''And the state needs that money now to be able to meet its financial needs, especially in December, where its obligations are very increased because of the salaries, and other end of the year obligations'' he said.

The Ports Authority has already pledged 38 million euros to the state, with the offer of a further 12 million if needed. CyTA are still considering a loan request of 120 million euros from their pension fund, which will be discussed tomorrow. (ANSAmed).

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