BRUSSELS, April 2 Cyprus should reach a primary
surplus of four percent of GDP in its budget from 2017 onwards
to ensure public debt falls, a memorandum of understanding
between Nicosia and international lenders on a 10 billion euro
The document lists fiscal steps, as well as reforms of
public administration, pensions, healthcare, labour market
privatisation and services that the Mediterranean island agreed
to undertake in exchange for euro zone financial aid.
According to the memorandum of understanding (MoU), obtained
by Reuters, Cyprus will have a budget deficit before debt
servicing costs of 395 million euros or 2.4 percent of GDP this
year, a bigger gap than the 1.9 percent of GDP in 2012.
Next year the primary deficit will grow to 678 million euros
or 4.25 percent of GDP and then shrink to 344 million or 2.1
percent of GDP in 2015.
In 2016, the island is to reach a primary surplus of 204
million euros or 1.2 percent of GDP and 4 percent from 2017