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CyTA weighs up whether to give the government another ,e1/4100m loan.


Stefanos Evripidou

TELECOMMUNICATIONS giant CyTA has found itself stuck between a rock and a hard place in weighing up whether to give the government another e1/4100m loan or see the state unable to pay public servants' 13th salaries.

CyTA chairman Stathis Kittis yesterday confirmed the semi-government telecoms organisation had to decide between feeding a cash-strapped state with another sizeable loan or watching as it fails to pay public servants' 13th salaries.

Speaking to the state broadcaster CyBC, Kittis said the government request for a second e1/4100m loan was submitted some days ago, noting that "CyTA is examining whether we have the resources available, whether we can lend to the government".

He added: "No decision has been reached yet."

According to yesterday's Phileleftheros, the CyTA board held a lengthy meeting on Tuesday to discuss the loan request, concluding that no decision will be taken until Finance Minister Vassos Shiarly meets the board to clarify the terms of a potential loan.

The paper said the profitable organisation had a number of concerns, including its low liquidity and the fact that the last e1/4100m lent to the state has yet to be repaid.

A further headache for the CyTA board is the clear opposition to the loan voiced by CyTA unions, who threatened dynamic measures and legal action if more money is taken from the authority's pension fund.

Asked about how much influence the unions had on a final decision, Kittis said the board always takes workers' positions seriously.

Probed further on the sticky situation the telecom authority is in, the CyTA chairman admitted CyTA had to decide between taking money from the CyTA pension fund to loan the government or have the latter fail to pay the 13th salaries of all workers in the wider public sector.

"This is the dilemma posed," he said, adding, "We need to weigh up all the factors and find the right balance to serve all sides, and the needs of the state, the country, our people, the economy."

According to CyBC sources, the government has also requested a sizeable loan from the port authority in the millions of euros.

Copyright Cyprus Mail 2012

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Publication:Cyprus Mail (Cyprus)
Date:Nov 29, 2012
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