Cypriot finance minister says budget deficit for 2014 will beat bailout target

NICOSIA, Cyprus – Cyprus’ finance minister says the budget deficit is next year forecast to beat the target outlined in the terms of the country’s bailout.

Harris Georgiades told lawmakers Monday that tough spending cuts will bring the 2014 budget shortfall to 7 per cent of gross domestic product, lower than the 8.25 per cent that Cyprus’ eurozone partners and the International Monetary Fund have set.

Cyprus was granted in March a 10 billion-euro ($13.68 billion) loan to avoid bankruptcy, but forced uninsured savers in the country’s two biggest banks to take major losses on their savings. Authorities also imposed controls on the flow of capital to prevent a bank run.