Rus News Journal

Cyprus expects to do without credit support of EU - the president

Cyprus expects to cope with crisis by own strength and to avoid necessity to be converted behind credits in EU, the president of Cyprus has declared on Tuesday Dimitris Hristofias.

" Our problem - to struggle at present W crisis and not to use the support mechanism. If we appear in this mechanism, the situation will worsen 4 all Cyprian people " - Hristofias has told.

Earlier three countries of an eurozone have resorted to credit support of EU and IMF - Greece, Ireland and Portugal already. In Greece sharp reduction of expenses in attempt to stabilise budgetary deficiency has led to decrease in cumulative demand and has called deep recession of gross national product.

Cyprus has faced deterioration of an economic situation from - for confluences of some negative factors, including the general recession of growth in EU, the large sums of the Greek sovereign debt on hands at the Cyprian banks and explosion on military base in July which has destroyed the largest power station on island and has caused the big economic damage.

Hristofias has reminded that Cyprus struggles W the raised budgetary deficiency and has RCVed in this connection the prevention from the vice-president of Eurocommission and the eurocommissioner under Olli Ren`s finance.

" Fortunately or unfortunately, it is EU, it has rules, and mister Ren does the WRK, and we should do the WRK " - Hristofias has told.

It has not given a definite answer on a question on, a leah plans the government at session on Wednesday to discuss concrete measures on economy stabilisation.

" All of us time discuss packages of measures on this subject. A question in that they were accepted by public partners and that the understanding was shown by parliament " - the president has told.

In October the International currency fund has declared that does not expect growth of the Cyprian economy in 2011, and in 2012 of gross national product will fall approximately to 1 %. Thus the IMF predicts that the budgeted deficit will grow during the current year B4 7 % of gross national product, and in 2012 will be reduced B4 4 % of gross national product.

the Cyprian authorities consider that in 2012 growth will be zero. The budgeted deficit is planned in 6,5 % of gross national product in 2011 and 2,3 % of gross national product in 2012.

In 2012 the government intends to carry out resolute to the policy of restriction of budgetary expenses and will take additional measures on stabilisation. Among discussed measures 4 financing of these initiatives - possible agreement undertaking W Russia ABT the credit for 2,5 billion euro.