Insider Economy Quangos and municipalities to assess fiscal risks

Quangos and municipalities to assess fiscal risks

The Finance Ministry has sent out a circular to semi-government organisations, municipalities and other local authorities in Cyprus warning of possible financial risks they may be confronted with next year.

The Ministry also called on them to write down whatever they consider to be of financial risk so that this is assessed and included in the fiscal risk report to go along with the 2020 state budget.

For semi-government organisations fiscal risks stem from lower anticipated revenue, contingent liabilities, guarantees, loans, court orders and amendments in macroeconomic data.

For local authorities, financial risks stem from legal actions taken either by employees in the municipality or by third parties hired to execute various contracts. As well as by debtors and creditors.

In addition, risks arise from non-performing loans, delays in repayment, high inelastic costs, and reduced gross revenue from that anticipated.

The Finance Ministry underlines that risk assessment should be the basic element of every organisation’s management strategy. That is, to identify, monitor, and methodically and systematically tackle risk so as to minimise it.

The circular stresses that good management is synonymous with the prompt identification of risks which are confronted in a timely and effective way. And that every six months boards should inform the Finance Ministry of risks and measures taken to confront them.

Read more:

Top Stories

New COVID-19 cases in Limassol cause concern

State services have been alert due to the fact that people from the Limassol Court, the Limassol Municipality and another person from the same...

Illegalities regarding pedestrian path at Peyia Sea Caves (PHOTOS)

The Environmental Authority asked the Municipality of Peyia to immediately demolish part of the pedestrian path constructed right above the sea caves which are...

19 patients at Famagusta General Hospital

Nineteen patients of COVID-19 are being treated at the Famagusta General Hospital, which operates as Reference Hospital. Out of these patients one is in the...

Pharmacies run out of flu shots

Association told CNA. As she said, people were in a state of panic to get the flu shot because of the COVID-19 situation and as...

Objections over only one woman on Deputy Ministry of Culture’s advisory group

Only one woman is part of the fledgling 16-member advisory committee on the establishment of a Deputy Ministry of Culture in Cyprus and this...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...