The political instability in Greece causes no concern for Cyprus

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The Finance minister of Cyprus Mr Harris Georgiades stated that Cyprus and the Eurozone in general are concerned about possible political instability in Greece.
The Finance minister of Cyprus Mr Harris Georgiades stated that Cyprus and the Eurozone in general are concerned about possible political instability in Greece.

Yesterday marked the start of when Greece vote for a new President and if the former European Commissioner Stavros Dimas does not get 180 votes, flash elections will be held in a few weeks. Syriza is the second largest political party in the Greek parliament and lead by left wing populist Alexis Tsipras currently leads the polls and promises to renegotiate the terms of Greece’s international bailout.

Profits of Greek bonds spiked once again over fears a Syriza-government could disrupt the economic reform programme already agreed with international creditors. ‘I hope there is no political instability in Greece for the sake of Eurozone economy’, the Cypriot finance minister stated in an interview to radio station CyBC. ‘There are no direct financial ties as those that existed in the past could cause additional concern for Cyprus’.

As part of Cyprus’s €10 billion bailout terms agreed with the Troika (which includes the IMF, the European Central Bank and the European Commission) Cypriot banks sold their operations in Greece. Both Cyprus and Greece ‘face an equally difficult economic correction course and often have difficulties including political ones, however Cyprus has a more stable political system’, Georgiades said adding that there is an impression internationally that the two countries’ course is individual and unique.