President: No funding for CY if EU rejects plan

THE government is not permitted to offer a guarantee or funding to the debt-ridden state carrier Cyprus Airways, which will not be able to meet its November wage bills if it does not secure financial aid.

Cyprus Airways recently submitted a proposal to the European Union to axe a fifth of its work force and cut wages for pilots and other staff in hopes of securing the £58 million loan it needs to stay in operation, although the unions are currently in discussions with the CY Board of Directors to amend the plan since they will not accept it as it stands.

The President said the position of the government was “explicit” in that it “cannot either give any funding or a guarantee”, further adding that there was a “a possibility” that it might give aid “if a restructuring proposal is submitted in time to the EU that has the chance of being accepted.”

Papadopoulos said that if the employees do not accept the plan, the European Union “won’t preoccupy itself with declarations” and the government “will not be able to give funding, nor guarantees to ensure the loans” with the result that “when the fluid capital of the company runs out, the company will stop its operations”.

The President finally added that the government “doesn’t want to impose the [restructuring] plan on anybody.”