The rapacious terms of the Cyprus bail-in Memorandum are really starting to bite deep into the Cyprus economy spreading misery throughout the island. A report by the University of Nicosia presented a forecast of unprecedented unemployment and economic collapse. The report forecasts that by the end of 2013, the unemployment rate will reach a record high of 24.6%. In real numbers, 52,882 people will lose their jobs, reducing the number of employed to 336,153 people. The number of unemployed will double to 109,591 people.
The report, which was drafted by the university's Center for Economic Studies Research Institute, forecasts that GDP by end of 2013 will contract by 14.4%, falling to EU11.4 billion (at constant 2005 prices=100) compared with EU13.3 billion in 2012. But the report also has an "extreme" scenario, which estimates shrinkage to EU10.4 billion (at constant 2005 prices) or 22.0%
These are precisely the figures forecast by a Greek economist in a report drafted prior to the signing of the bailout, if Cyprus did not leave the Eurozone. The report's figures were used in Helga Zepp-LaRouche's and Dennis Small's 27 July webcast. That report had forecast an unemployment rate of mor than 22% by the end of 2013 and a GDP loss of 20%.
As of June, official unemployment is 16%, and youth unemployment is officially 37.%. Cyprus Mail reports that in some parts of the island, youth unemployment is 45-50%. This figure is rapidly increasing. It reports that under orders from the Finance Ministry the graduates from the national forestry college will not be employed by the forestry department, despite 60 years of tradition during which graduates were inducted into the department's ranks. The ministry told the graduates to seek employment elsewhere; the college will be closed down following the June 28 Sunday graduation ceremony. The Finance Ministry did not bother to tell Agriculture Minister Nicos Kouyialis about the decision, and he had to be informed by the graduates at the ceremony. Kouyialis assured the Cyprus Mail that every effort was being made to overturn the Finance Ministry's decision.
According to the college principal, Andreas Mavrogiakoumas, "Despite the department's pleas, the Finance Ministry, citing the financial crisis and the freeze on civil servant employment, decided that the graduates would not be given jobs at the forestry department," he said.
Since the Troika is burning down the entire economy, who needs forests? The Green Party protested the Finance Ministry's decision, calling on the government to hire the graduates and to keep college open.
"The disappearance of specially-trained personnel is a huge mistake," a statement said.
The Forestry department claimed that closing down the college was decided upon after a study showed that it was "not necessary." One reason was that forestry graduates from Greece, said to be equally or better qualified than Cyprus Forestry College graduates, could supply Cyprus! This is doubly absurd, because no one at all is being hired, since the Memorandum has frozen all civil service hiring.
With the announcement of a 47.5% robbery of deposits over EU100,000 at the Bank of Cyprus, as mandated by the Troika, it is now reported that the bank's employees will see their wages reduced by 5-30%, depending on their monthly salaries.
