By Alexander Apostolides on September 27, 2011

Number Crunching: Why all efforts to reduce the budget might have been futile...

I was told to try and be more positive on the goings on in Cyprus. As a natural born optimist I try, but unfortunately it seems that no one connect the bigger picture - which is completely dire.

1) Possible savings if the measure to withhold the wage indexation of government employees (ATA): 130 million over two years. Will cost 130million more after 2013...
This measure passed with great resistance and with a strike from government teachers.
2) Cost of the contribution of Cyprus to the Greek bailout plan: 150 million
Thus our actual savings is -20 million

In addition:
Amount of short run debt that needs to be rolled over (reborrow) by the end of 2013: 9.9 billion. Amount the Republic of Cyprus is planning to borrow on a 3 month basis 100million. Thus amount we need to roll over soon on a much more expensive interest rate has topped the 10 billion mark.

Oh and what happened to that "loan" from Russia? Can someone please explain who you announce such a deal before it is finalized - and why there has been such a delay in closing the deal?

So once again I tried to write an optimistic article, but my optimism evaporated by 11:00 am. I hope you have a more optimistic day...
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