Semi-Government Organisations in Cyprus Have Millions of Euros Frozen

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The Cyprus government has frozen millions of Euros before approving the budgets of the islands four biggest semi-government organisations (SGO), with the worst affected being the Cyprus Telecommunications Authority (CyTA).
 

The House Plenium approved the budgets for the Cyprus Broadcasting Corporation (CyBC), the Cyprus Tourist Organisation (CTO), Electricity Authority of Cyprus (EAC) and CyTA, their available funds were dramatically slashed, after a number of amendments submitted by the parties were passed, if not unanimously, by a majority vote.
 

The CyBC came in for criticism after requesting a 20% increase in its budget at a time of financial crisis. Similarities were made to the British BBC, which in 2009 and 2010 was forced to axe programmes and thousands of employees in a bid to survive.

CyTA was worst hit with almost €50 million of its requested funds being frozen – meaning they will have to go through the House in order to have the funds released in the future.

A unanimously approved amendment led to deductions of €1.3 million for bonuses and incentives and €2 million for compensation for early retirement. Budgetary funding was also refused for the authority’s TV network CyTAvision, amounting to €20,775,000. Other deductions included €11 million for advertising and €10 million for investments by related company Digimed.
 

The CTO budget was unanimously passed, though a number of funds were frozen, including €15 million earmarked for advertising in Cyprus and abroad and €2 million for the purchase of services and other incentives to improve the islands tourist product.

The House also approved a 10% reduction in funds for CTO employee’s overtime and other benefits, as well as the office’s operational expenses.

The EAC’s budget which was reduced by €35 million, with people having to be laid off, was unanimously passed with only €855,000 being frozen, which was for compensations for early retirement.
  
  
  
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