You are here

CB restructuring on the table

19/10/2015 12:24
The Central Bank needs restructuring according to Finance Minister Harris Georgiades, who has pointed out that its credibility and confidence have been damaged.

The finance minister noted that "in a time when everything changes and reforms are made in public service and banks, the central bank cannot keep the same structure.

As he said, he contacted CB Governor Chrystalla Georghadji in writing, expressing the government's readiness to cooperate for the preparation of legislative regulations.

"The framework of the reforms should include CB and I am confident that it will help restore confidence" he stressed.

For the banking sector, he noted that there have been major steps towards its consolidation and for the strengthening of the supervisory framework, adding that there is much to be done.

Mr. Georgiades said that high lending rates are a negative factor in the effort for recovery, noting however, that there has been a scaling down of interest rates.

Today, he noted, lending rates are half the level of 10 years ago, but stressed that they are higher compared to the European area.

"The scaling down of interest rates should continue, so that there isn’t any disadvantage for the Cypriot economy", he said.

As regards non-performing loans the minister noted that efforts to service loans should be strengthened.