Sarris: debt will meet euro standards by 2009

CYPRUS expects its public debt, which must decline to meet euro adoption guidelines, to fall below 50 per cent of gross domestic product in the next two years, Finance Minister Michalis Sarris said yesterday.
Sarris also said he expected the Cypriot pound to be locked in at a parity level against the euro around July 10 this year.
Cyprus applied to join the euro zone on February 13 and expects to make the changeover on Jan. 1 2008.

“We have a sinking fund which matures in 2008, meaning we have been saving money all these years so that at a point in time we will have an accumulated amount to repay debt, and that comes due in 2008,”

“I think we will go just below 50 per cent,” Sarris told Reuters on the sidelines of a conference.
Nicosia has been following an economic austerity programme since 2004, managing to slash its budget deficit then topping 6.0 per cent to a projected 1.6 percent this year.
Public debt is expected to drop to 60.5 per cent of GDP this year from 64.5 per cent in 2006. (R)

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