NICOSIA - Cyprus plans spending cuts to achieve a primary budget deficit lower than the level targeted by the island's international lenders, its finance minister said yesterday.
Harris Georgiades said the government aimed for a primary budget deficit - which excludes the cost of debt interest - of 3% of gross domestic product, compared with 4.25% outlined in the bailout deal.
A draft budget for 2014 provides for a 10% cut in net spending compared to 2013, Georgiades told reporters.
"The basic characteristic of the budget is significant savings on expenditure. We are operating in a difficult economic environment," he said.