Informal meeting of EUROGROUP Ministers in Dublin: extracts from the press conference
Lieu: Dublin, Ireland - Dublin Castle
End production: 12/04/2013 First transmission: 12/04/2013
On 12 April, Jeroen Dijsselbloem, President of the Eurogroup, and Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs, held the conference of the informal meeting of Eurogroup meeting in Dublin.
They welcomed the agreement reach on bailout program for Cyprus. This will allow national parliaments to vote on the deal for cash-strapped Cyprus, in time for the first aid disbursement to take place in May.
Nicosia has been granted a 10-billion-euro bailout, but in return must reduce the size of its bloated banking sector, raise taxes, downsize the public sector and privatize state-owned companies.
On Cypriot growth forecast, Olli Rehn said:'I don't deny that in the present circumstances there is of course some quite uncertainty about the exact figures whether it is going to be 10%, 12.5% or 15 % in economic activity'.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||General view of press conference
||SOUNDBITE (in English) Jeroen Dijsselbloem, President of the Eurogroup: We welcome the staff level agreement which has been reach within Cyprus and the Troika on policy conditionality on aligning the macro economic adjustment program. The agreement is fully in line by the parameters and objectives set by the Eurogroup on March 25. We had an opportunity today to discuss the program documentation in detail together with the troika institutions and we consider that the necessary elements are now in place to launch the relevant national parliamentary procedures required for the formal improvement of the ESM financial assistance facility agreement. And the ESM will accordingly provide a total program financing amount of up to 10 billion subject to the IMF's contribution. The staff level agreement reach between the IMF and Cyprus authorities foresees a contribution of about 1 billion Euros from the Fund to the IMF executive board decision. The definitive amount of the ESM program will then be about 9 billion Euros.
||Cutaway of the speakers
||SOUNDBITE (in English) Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro: I want to welcome today's political agreement reach on the memorandum of understanding for the Cyprus program. The way is now opened for the national approval procedures. And I hope that it will be possible to fully complete this procedure by the end of next week. That will allow the signing of the memorandum and the effective start of the program. This has been a long and very difficult process as we all know. Now it is important that the decision will be implemented effectively so that Cyprus can move forward.
||General view of press conference
||SOUNDBITE (in English) Olli Rehn: We are revising the growth forecast and of course, plenty of uncertainty about the exact trajectory of the economic growth in Cyprus. It will depend on many things starting with the effective implementation of all the programs and related also to the stabilisation of the financial system and the overall national economy. So, at this stage we do out best and we done it as we can. But I don't deny that in the present circumstances there is of course some quite uncertainty about the exact figure whether it is going to be 10%, 12.5% or 15 % in economic activity.