Cyprus Property News
Cyprus | Posted:

Cyprus in need of 15 billion euros

The international rating agency Standard & Poor's estimates that Cyprus will need in excesses of 15 Billion euros form the European support mechanism, in order to support its straggling economy.

According to a report of this agency, which was released yesterday evening, under normal circumstances the needs of the economy over the next three years would be 11 billion or 61% of GDP.

Banks will need nearly 4.5 billion and the island's economy around 7.5 billion. However, as noted, given the uncertainty in Greece and the necessary safety margins in other programs, such as Ireland and Portugal, the required amount could exceed 15 billion.

The international ratings agency considers the pressures for short-term financing needs of Cyprus will increase if there are clear prospects of bilateral loans for Cyprus and the disbursement of funds from the mechanism will be delayed for several months.

The agency considers that Cyprus will be in more difficulty than that foreseen, in maintaining the low corporate tax, while noting that in the coming years the prospect of exporting natural gas can provide the required impetus to growth and investment.