The Cypriot parliament begins a debate later on Tuesday on a 10-billion-euro (HK$101.5 billion) EU-IMF bailout which Finance Minister Haris Georgiades has described as a tough but necessary measure that has to be ratified without delay.
Speaking on the eve of the parliament meeting, Georgiades warned that without a positive vote on the bailout deal, the eastern Mediterranean island would be driven to full economic collapse and could be forced to exit the eurozone.
Such an outcome would be “dramatic”, said Georgiades.
He urged lawmakers to take “a very difficult but necessary decision” and ratify the agreement struck last month with a troika of international lenders -- the European Union, European Central Bank and International Monetary Fund.
It is not known whether a vote on the controversial package will be held on Tuesday or if it will be pushed to another day due to prolonged debate.
A government source told AFP the vote “hangs in the balance and could go either way”, with the ruling Disy party and coalition partner Diko “in favour” and the opposition Akel party set “to vote against” it and the social democratic Edek party still undecided.
The cabinet approved the deal on Wednesday, with government spokesman Christos Stylianides saying “ratification of the loan agreement is expected after April 26”.