Troika in Cyprus: privatisation outrage
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Article summary
The Cyprus government nearly fell in February over IMF and European demands for the privatisation of three public utilities.
The Cyprus government resigned in February after legislation to privatise state-owned electricity, telecoms and ports utilities was rejected. The bill was a condition for an early April disbursement of €236 million ($326 million) by the Troika (comprising the IMF, European Central Bank and the European Commission). Other loan conditions include cutting public sector employment, pensions and public spending. The bill was subsequently passed and the government survived but without its junior partner, the Democratic Party. Public protests and strikes followed, meanwhile one-year-old capital controls limiting bank cash withdrawals to €300 per day remain in place, despite initial claims they would last only a few days.
