A new budget rejection will push Cyprus to default, FinMin says

A new rejection of the 2021 state budget could lead Cyprus to default on its payments, Minister of Finance Costantinos Petrides warned on Friday, stressing that without fiscal support to businesses and self-employed to face the difficulties due to the Covid-19 pandemic “we could be mourning on scorched earth.”

Petrides who briefed he parliamentary committee of Finance and Budgetary Affairs on the revised state budget said a new rejection “surely will lead Cyprus into adventures.”

“We will not be able to borrow from the markets, as we were planning to do in the coming period, we will not be able to support businesses and our investment grade will be threatened,” he said in statements to the press following the meeting.

Source: Cyprus News Agency