Cypriot parliament ratifies bailout deal

NICOSIA - Cyprus' parliament on Tuesday ratified by a slim majority a 10-billion euro bailout deal with the Eurogroup and the International Monetary Fund after the government had warned that failure to approve the deal would mean an imminent default.

The voting result was 29 for the Memorandum of Understanding and related documents and 27 against.

The measure was supported by 20 main government coalition DISY party deputies, 8 deputies from the centre DIKO party and by one of the two deputies of the European Party.

The bailout deal was opposed by 19 deputies from the main opposition AKEL party which as government prior to losing a presidential election in February had agreed a preliminary bailout with international lenders, 5 socialist EDEK party deputies, one deputy from the single-seat Green party, one independent and one European Party deputy.

During the debate on the memorandum, AKEL party proposed an alternative plan based on a study prepared by left-wing economists from Greece, Germany and Cyprus.

AKEL suggested scrapping the bailout deal, reverting to the old currency, the Cyprus pound and seeking alternative sources of financial support, though it conceded that its plan could mean leaving the euro zone.

Socialist EDEK party based its opposition to the bailout deal mainly on political considerations. The party's parliamentary leader said it is concerned that formally entering into the bailout deal will lead to political pressure for a solution to the Cyprus problem which will be unacceptable to the people.

Cyprus has been split into Greek and Turkish-Cypriot sections since Turkey occupied north of the island in 1974, reacting to a coup by Greek army officers. Finding a solution which will lead to the re-unification of the island has defied repeated rounds of negotiations.

Both the government and the ruling coalition parties dismissed any alternative way of leading the country out of the economic crisis. Party deputies said that seeking support outside the Eurogroup would lead the country to immediate insolvency and the economy to a total collapse.

The debate was held as demonstrators opposing the bailout protested outside the parliamentary building, demanding the rejection of the Memorandum.

The demonstrators came from left-wing AKEL party but also from different small groups opposing the bailout deal.