Cyprus Mail

Was there ever a Plan B?

MPs rejecting the first haircut in March 2013

The Government is partly to blame for this terrible mess.

Why did it take them so long to bring a Plan B? If they had learned anything from the past it was that to get a bill through parliament they had to cut deals with smaller parties.

The magic of Averoff and Nik Papa has gone as we have elections coming soon and the petty politicians that represent the people think of their jobs and having to satisfy some of their kindred folk.

The government should have had a Plan B from day one. There are two ways to get financing to businesses; either with government guaranteed loans, which we know were not popular with those politicians which see always some secret pact to support banks which is nonsense, or, to provide eligible businesses with direct financial instruments, issued by the MOF, which they would then use to raise liquidity.

This could deliver funding to businesses within days since most of the work can be done online and the government would take 100% of the risk for the value of the financial instrument. SO the banks would have no residual risk and would swiftly process the transactions.

This shows a huge lack of knowledge of the mandarins of the MOF and certainly nothing has been learned since 2013. The government could have acted quicker to bring a Plan B and stop blaming the opposition.


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