ECONOMY

Cyprus deficit for 2012 seen at 2.5-2.7 percent

Cyprus?s Finance Minister Vassos Shiarly (photo) said on Monday that the East Mediterranean island?s fiscal deficit this year will range between 2.5 percent and 2.7 percent of gross domestic product.

The commitment given to the Eurogroup, the euro area?s finance ministers body, by his predecessor Kikis Kazamias ?will be adhered,? Shiarly told lawmakers in Nicosia.

?We will take all necessary measures to stay within this target should there be any deviation. In 2013, the deficit will be 0.5 percent of GDP which means we are close to a balanced budget.?

Shiarly, an ex-Bank of Cyprus executive, said that the euro area?s third-smallest economy will prepare within ?a few weeks time? a bill to enshrine in its legislation the provisions of the euro area?s fiscal compact which European leaders signed on March 2, which aims at eliminating fiscal deficits. [Bloomberg]