Cyprus News Agency: News in English, 06-12-01

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From: The Cyprus News Agency at <http://www.cyna.org.cy>

CONTENTS

[01] GREEN LINE - MILLET

[02] CENTRAL BANK - INTEREST RATES

[01] GREEN LINE - MILLET

Fotiou, who discussed the issue with British High Commissioner Peter Millet, said that the smuggling of agricultural products originating from Turkey could prove to be dangerous for the consumers health since substances like DDT which are forbidden in the EU, are allowed to be used in Turkey.

During the meeting, the Cypriot Minister raised the issue of goods smuggling through the green line and especially through the areas that are under the control of the British Bases, in the Pergamos and Dhekelia areas.

In his statements, Millet described the issue as very serious and reassured that the British Bases in Cyprus would do their utmost to stop illegal trade.

Fotiou said that 370,000 kilos of onions have been transferred via the green line to the government controlled areas the first two weeks of November, saying that it is not possible that such great amounts are produced in the occupied areas.

For this reason, he added, the government must look into the issue and ascertain whether product certificates of the Turkish Cypriot Chamber of Commerce are being issued following the right procedures.

We cannot let illegal traders conduct trade anymore. The most dangerous aspect does not have to do with trade or the interests of the legal producers. It has to do with smuggling of drugs, weapons and agricultural products, he said.

But Fotiou made clear that the Republic of Cyprus does not object trade with Turkish Cypriots.

We respect the green line regulations, provided that they are being implemented for the benefit of all, Greek Cypriots and Turkish Cypriots, he said.

On Monday, a broad meeting will take place presided by the Minister of Agriculture in order to ascertain whether the controls at the government controlled areas are sufficient.

[02] CENTRAL BANK - INTEREST RATES

Following an extensive discussion, the MPC noted that international and domestic developments have not substantially changed since its last meeting in October 2006, so as to warrant at this juncture a change in domestic interest rates.

Announcing the decision of the Monetary Policy Committee (MPC), Governor of the Central Bank Christodoulos Christodoulou noted with satisfaction the ongoing deceleration of inflation, as a result of which inflation receded to 1,43% in October, from 2,38% in September and 3,10% in August 2006.

For the ten-month period covering January October, inflation reached 2,73% compared with 2,59% in the corresponding period of 2005. Despite the considerable decrease in inflation, the MPC expressed its concern about the continuing sizeable expansion in the money supply and credit to the private sector, which contribute to the widening of the trade deficit.

The MPC, taking into account all the above, unanimously decided to adopt a wait-and-see stance at this juncture, leaving the official interest rates of the Central Bank of Cyprus unchanged.

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