We have the fiscal buffers to intervene and boost the economy says FinMin amid coronavirus fears

Cyprus is close to finalizing a package of fiscal measures to boost the economy amid the disruption created by to coronavirus outbreak, Finance Minister Constantinos Petrides said, noting that the fiscal buffers created due to prudent fiscal policy allows the government to intervene.

Petrides and Minister of Labour, Welfare and Social Insurance Zeta Emilianidou discussed with representatives of political parties the fiscal package currently being finalized as part of the government’s efforts to boost the economy.

“There is no doubt (the package and the crisis) will have a significant fiscal cost, there is no doubt growth will be affected but I would like to reiterate that the prudent fiscal policy we followed in the last years, a prudent stance so that we could intervene with the best possible way at the times of crisis,” he said.

Petrides underlined that the developing world crisis due to coronavirus is turning into a financial crisis and added that “The Cypriot economy would not be left unscathed but it is impossible to estimate the exact hit at the present stage.”

He added that the package aims at safeguarding jobs, the level of wages and measures to boost companies through boosting liquidity and subsidies for companies affected by the crisis.

On her part, Emilianidou said the government aims to protect employees, contain unemployment and support the vulnerable groups of the population.

“Our priority is to protect workers and vulnerable groups so we could respond to these circumstances with no panic but with a structured dialogue with social partners so we could concluded to suggestions and decisions,” she added.

Cyprus already ten confirmed coronavirus cases, while the Deputy Minister for Tourism Savvas Perdios said that Cyprus face a very difficult tourist season. Tourist is one of the most significant drivers of Cyprus growth.

Source: Cyprus News Agency