Jeroen Dijsselbloem, the Eurogroup Chairman, and Jyrki Katainen, EU Commissioner responsible for Economic and Monetary Affairs and the Euro, stated that recently passed by opposition parties were incompatible with the memorandum of understanding between the Republic and its international lenders.
European officials said on September 12 that the island Republic will receive the next tranche of financial assistance until its foreclosure and insolvency laws were changed to comply with the bailout agreement.
“We call on all domestic stakeholders to (take) their responsibility and ensure that adequate foreclosure and insolvency legislation is in place as soon as possible, in line with the Memorandum of Understanding,” Dijsselbloem said at a news conference after a meeting of eurozone finance ministers in Milan.
“Once the troika institutions confirm required prior action has been successfully completed, we can proceed with disbursement of the next tranche,” he said.
President Nicos Anastasiades has referred four laws to the Supreme Court, and he sent back to parliament two other bills found to be incompatible.
Commissioner Katainen said that Cyprus “is doing a good job in a sense that it is meeting fiscal targets with a comfortable margin,” however.
:He added that structural reforms are advancing and there is progress as regards further recapitalisation of banks.
The Commissioner said that some parts of the foreclosures legislation adopted by parliament were not compatible with the programme’s requirements, adding that they were waiting for the Cypriot authorities to inform them on how they will proceed. He stressed that the foreclosure reform is very essential since it will enable banks to start providing credit, which can lead to the recovery of the economy, the Cyprus Mail reported.
Finance Minister Harris Georgiades said “I think we now have some room to revisit the matter with seriousness and finalise our decisions collectively…We have come a long way, we have the first tangible results and we must not undermine the prospects that are beginning to form.”
The post Troika Aid to Cyprus Delay Delayed Until Laws are Harmonized with Debt Deal appeared first on The National Herald.Source: The National Herald