Cyprus’ parliament rejected a privatisation bill just hours after one of the two main parties in the islands’ coalition said it was quitting government. The bill is a pre-requisite for the release of bailout funds for Cyprus.
Hundreds of Cypriots - including employees of the power and telecommunications utilities- opposed to privatisations had gathered outside the parliament to protest again the bill which was aimed at regulating the privatisation process.
The privatisation of seven state owned enterprises was set down as a condition by international lenders who accorded a €10 billion bailout for the eastern Mediterranean island last spring.
The move is intended to raise €1.4 billion.
The eurogroup will meet on March 10, by which date the bill will have to be passed if it is to give its approval for the release of €150 million in EU funds and €86 million in International Monetary Fund (IMF) assistance.
Early on Thursday, the Democratic Party (DIKO) decided to withdraw from the coalition in disagreement over the joint statement that is the basis of the latest round of peace negotiations with the Turkish Cypriots.
Without DIKO, the Democratic Rally party of President Nikos Anastasiadis and its junior partner are well shy of a majority in parliament.