The duration of the regional crisis will be the determining factor for its impact on the country’s economy, Government Spokesperson Konstantinos Letymbiotis has said, underlining at the same time that Cyprus’ economy is resilient.
Speaking to journalists at the Press Centre of the Presidential Palace on 5 March and asked whether an economic impact study has been conducted in the event that the situation in the Middle East is prolonged, the Spokesperson said that this is an issue affecting the European Union and the entire world.
He said that the Republic of Cyprus has made an initial assessment, noting that the Minister of Finance briefed the Council of Ministers.
“The determining parameter, however, the key factor that will define the outcome, will be how long this regional crisis lasts,” he added.
“All evaluations are being carried out on our part,” he noted. He stressed that “it is precisely under such extraordinary and unprecedented conditions that the importance and value of responsible fiscal policies become evident,” as well as the need for solid foundations as regards Cyprus’ economy, “so that when such extraordinary circumstances arise, the state has the tools and the capacity to respond and to support citizens where necessary.”
According to the Spokesperson, the situation “is being constantly evaluated” by the Ministry of Finance. “We hope – and towards that end we continue to work with our partners – that the regional crisis will de-escalate as soon as possible, and I believe that this is the view, the will and the effort of the international community,” he said.
Asked whether the Minister of Finance has informed the Council of Ministers, under an extreme scenario, how long the reserves of the state coffers would last, the Spokesperson said that the assessment is being carried out at various levels. Noting that there are “solid economic foundations” and that Cyprus’ economy is currently “at a very good level,” he said that for a comprehensive assessment to be made, this must be considered in relation to international and regional developments and the period during which they unfold. “What I can tell you is that this assessment is carried out daily in line with new developments, and the Cyprus economy is resilient,” he added.
Asked whether there are plans to protect tourism in light of cancellations in the sector, the Spokesperson said that “in order for a plan to be defined and determined, first of all the extent and duration of this regional crisis must be established.” Flight cancellations do not concern Cyprus, he said. “They concern decisions taken by airlines in relation to the regional crisis, or the closure of airspace in the region affecting flights that would fly over the Republic of Cyprus,” he added. Naturally, he said, this is something that is being assessed.
“We have already been informed about companies that have announced they will resume their flights from tomorrow (Friday, 6 March), and some in the coming days,” he noted.
“We are in full coordination at all levels. This is something we are examining while remaining in contact with the European Union, and we hope that this crisis will conclude as soon as possible,” he said.
(Source: CNA)
