THE CABINET has paved the way for Cypriot companies to claw back some of the money owed them by the Libyan state, Commerce Minister Antonis Paschalides said yesterday.
Speaking after a cabinet meeting, he announced that cabinet has approved the ministry’s proposal regarding the distribution of money owed by the Libyan government to Cypriot firms.
Libya’s total debt to Cyprus for goods and services provided by Cypriot companies since the 1980s reaches almost €6 million. So far the Cyprus government has been able to collect approximately half of that.
“At the moment, there is difficulty in communicating with the relevant Libyan minister, due to the situation in the country. However, the ministry will continue its efforts,” he said, regarding payment of the remaining debt.
Following cabinet approval of the ministry handout plan, however, companies will be able to get their hands on the money that Libya did manage to send over before troubles started in the region.
“I will give instructions for the money to be handed over immediately by the finance ministry once the necessary documents have been signed,” Paschalides said.
He said that 13 companies not facing legal problems will be able to collect the money right away from the Finance Ministry, whereas the rest will need to sort out pending legal issues first.
The minister also announced a cabinet decision to abolish Larnaca’s Free Zone and convert it to an Industrial Zone.
The three companies affected by the decision will be compensated by the government, he said.
Paschalides explained that the area has not been developed appropriately in the past few years, leading to the government’s decision to convert it to an industrial zone as a way to support many companies, large and small.
“All this space which until today has not been adequately used, we will now be able to make use of to the benefit of our industries,” said the minister.
Asked what will change with the conversion, he said: “A lot of things change because when it was a Free Zone many Cypriot companies which did not meet the conditions could not operate in this area. The demand for a free zone diminished due to companies’ changing needs. So, the ministry can now use this huge space much more for the benefit of our industries and craft.”
Also at the cabinet yesterday ministers agreed to continue a freeze on hiring in the civil service.
Government spokesman Stefanos Stefanou the cabinet renewed a postponement on filling 520 empty positions already opened by parliament in the civil service.
The positions were opened and published in the official gazette though candidates were never called to take oral or written exams.
By this move, the government hopes to save around €8m, he added.
