Some of the most likely terms/conditions for the gaining access to the Troika loan
- The most certain action to be taken is the reduction of salaries, benefits and pensions in the broad Public Sector.
- Reduction of the number of Public Sector employees but most likely in stages and utilizing a ration such as 1 hire for every 5 departures.
- Change in employment rules in the Public Sector so that employees can be moved to sections/areas depending on current needs.
- Reduction in non-salary spending but most likely through tighter controls.
- Adjustment of COLA especially for highly compensated employees with possible elimination after a certain income.
- Possible VAT increase, hopefully at 18% due to the recent VAT increase from 15% to 17%.
- Reduction of amount of non-taxable income.
- Possible increase of the corporate taxes even for the “sake of honor”.
- Privatization of Semi-Government organizations such as Cyprus Airways and/or elimination of others.
- Combat Tax-evasion.
- Increase generation of property taxes mainly through value adjustments.
Especially for Banks
- Reduction of Salaries, employees and benefits.
- Changes in Banking rules and regulations especially for Co-operatives.
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