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PRIVATIZATION

PRIVATIZATION. AFCE 410 Mavrikiou Chrysovalanta Fedia Maria. INTRODUCTION: Lately the issue of privatization has become particularly hot topic in Cyprus, mainly because of the relevant provisions of the memorandum with troika for semi-government organizations.

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PRIVATIZATION

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  1. PRIVATIZATION AFCE 410 Mavrikiou Chrysovalanta Fedia Maria

  2. INTRODUCTION: • Lately the issue of privatization has become particularly hot topic in Cyprus, mainly because of the relevant provisions of the memorandum with troika for semi-government organizations. • It is the process of transferring ownership of public service or public property from the public sector (a government) to the private sector. It means that government outsourcing of services or functions to private firms.

  3. Akel – no TO privatization • Need restructuring and not privatization and ensure that persons who go there, offer and not enjoy benefits. • They say no to privatization of semi-governmental organizations because, if we believe that you will overcome the crisis in 2015 and those orgs operating profit of 500 million Euros a year, in 3 years will be able to provide 1.4billion needed to meet their needs.

  4. ASSESSMENT OF AKEL • Also they say that the majority of Parastatals not only threatened with bankruptcy but performs and profits, much of which ends up in years in state funds. • The sellout organizations in the private sector will lead to a drastic rise in unemployment, rising prices of services and downgrading in their quality as has happened in many cases abroad. • These enterprises have supported the state with grants. An individual will never be operated in this particular way.

  5. ASSESSMENT OF AKEL • The Economist Stavros Tompazos says that in countries that incurred privatizations now they want to nationalize their organizations. • Democracy is better regime than authoritarianism. • Due to privatization electricity increases. • The people have no benefit from privatizations, only investors. • Citizen will rise up as happened last week with the strike of Cyta.

  6. ΔΗΣΥ- YES TO PRIVATISATION • Semi-governmental organizations, especially those with significant commercial activity, should be modernized. • The equity and participation of strategic investors to become more functional and competitive. • “What should be done about the semi-governmental organizations specifically mentioned in the Memorandum that commits the Republic of Cyprus”.

  7. ASSESSMENT OF ΔΗΣΥ • Parastatals submitted a proposal of how they can meet their needs. “only with LOTTO can be secured 1.4 billion Euros”. • Minister of Finance: We need 1.4 billion from lenders. “To give us that money should be privatization, we have no other option” he supports. • The Economist-Sofronis Kliridis consider privatization as a tool for modernization and that in some countries has been productivity because of Privatization.

  8. ASSESSMENT OF ΔΗΣΥ • The former Minister of Finance - Vasos Sarlis said that nobody can escape from the memorandum was signed in July for privatizations. • The President of ΔΗΣΥ - Averof Neophytou said there is no other way except by making privatization. We can only get out of the memorandum with the bankruptcy of our country.

  9. CONCLUSION • Privatization is now at the heart of debating between politicians, the citizens and the entire world because the results will affect many people. • The decision for privatization of Cyta was made last week after the parliament’s voting. Cyta will privatize in 2 years, as a result we can only accept their decision. • Our view about Privatization tends to be negative as the majority of citizen, and we support our opinion by the following reasons:

  10. These organizations each year make a lot of profits and there is no reason to privatize them, because it will offer to the government 1.4 billion Euros within few years. • Also they argue that the 1.4 billion Euros they can find them from elsewhere without borrowing from Troika. • Semi-government organizations provide benefits to government, by becoming private companies is disadvantage for government because they will not have the luxury to enjoy several grants.

  11. Through some investigations have generally been proposed some measures instead of privatization so it would be good before they go to some privatization try some measures in order to see if they bring positive results. • Cyta outlined plans to ‘immediately proceed with restructuring, aimed at reducing costs’, so that the state ‘will continue to have an asset of increasing value, which can be used in the best possible way without pressure and timeframes. • Privatization will cause increase in price of electricity, unemployment will increase, this will have bad results in Cyprus and the welfare will not be developed.

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