Finance Minister Harris Georgiades said paying December salaries and pensions early would not put a strain on public finances, defending the decision to make the payments mid-month.
According to an earlier announcement from the treasury, next month’s salaries to civil servants and pensions will be paid on December 15 while 13th salaries and 13th pensions will be paid on December 28.
The money will be transferred to the recipients’ accounts on those dates, the ministry said.
“There is satisfactory cashflow,” the minister said, “we are no longer going through the times when the state’s available cash lasted just days.”
“A satisfactory cashflow has been established allowing the state to pay in time, what it would be paying to workers and pensioners anyway; first salary mid-December and the second at the end of December, so that our fellow citizens can cater to their Christmas needs but also to stimulate the market,” the minister said.
Georgiades said it was real economy that was now on the way to recovery, as reflected by the 3 per cent growth expected this year.
“The fact that all our productive sectors contribute to this recovery satisfies us,” he said. “But let us not forget that we went through a long, deep, and protracted recession and we still have some way to go.”