New York -IMF positions on Cyprus continue to be harsh and the officials insist on deposits haircut, however we have made it clear once more that such a thing would be catastrophic for our country, Chairman of the House Committee on Foreign and European Affairs Averof Neofytou said.

Neofytou held contacts with IMF senior officials and officials from the State Department and the Treasury Department of the US government the previous days, in the framework of his visit to Washington where he attended a three-day conference of the Jewish lobby AIPAC.

Cypriot MP who concluded his visit to the US, attended a dinner hosted in his honor by the Federations of Overseas Cypriots in New York.

Addressing the guests, Neofytou said that Cyprus is not an industrial country and its economy is mainly based on services and the banking system. Therefore, he stressed, a possible haircut on bank deposits would amount to depositors loosing faith in banks.

He reiterated once again that President Nicos Anastasiades would never concur to a deposits haircut because this would affect the whole basis of the Cypriot economy.

Excluded from international capital markets, Cyprus has requested financial assistance from the EU bailout mechanism after its two largest banks sought state aid following massive losses of their Greek bond holdings estimated at €4.5 billion, as a result of the Greek sovereign debt haircut. The Troika (EC, ECB, IMF) and the Cypriot authorities have agreed on a preliminary memorandum of understating which includes the conditions for the granting of the financial assistance programme estimated at €17 billion.

Referring to the Cyprus problem, MP Neofytou said that the each Cypriot’s vision is for our country to be reunited and we will continue our struggle to end the occupation.

He also expressed his gratitude for the significant role the overseas Cypriots play in the US as regards the Cyprus issue.

Yesterday the Cypriot MP met with the Deputy Secretary-General of the United Nations Jan Eliasson in New York. He conveyed President Anastasiades’ will to work with the UN for the solution to the Cyprus problem, noting that this is among his top priorities.

According to diplomatic sources, Neofytou explained to the Deputy UNSG that it would not be conducive to resume the negotiations for the Cyprus issue while the government is making efforts to stabilize the economy.

However he pointed out that it would be constructive to promote particular confidence building measures that would amount to the creation of a more positive atmosphere for the resuming of the talks.

Neofytou clarified that the confidence building measures cannot substitute the efforts by the two communities in Cyprus under the aegis of the UN for a comprehensive solution.
(CNA)