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MoF: Memorandum for some more months

04/04/2015 15:40
Minister of Finance Harris Georgiades said that Cyprus will continue to implement for some more months the financial assistance program it has agreed with its international lenders and expressed his optimism as regards the prospects of the Cypriot economy.

The Minister, who was addressing on Saturday a meeting of the Political Bureau of the right – wing ruling DISY party, noted that the government will continue implementing the program until the confidence of the international markets in the Cypriot economy is consolidated. Their confidence, he went on to say, is directly linked with the implementation of the program.

He also said that the correction of the economy was a relatively quick procedure which began two years ago and succeeded in creating conditions of stability and confidence.

Expressing optimism about the economic situation, he said that the Cypriot economy has tremendous potential and that there is still an impetus in key productive sectors of the economy.

The Minister said he was satisfied with the efforts to stabilize the banking sector, noting that those efforts must continue so that banks begin lending to businesses and households.

Referring to interest rates, he said that both deposit and lending rates are the lowest ever recorded in Cyprus and added that they have to be reduced even more since they are still above the European average.

Excluded from the international capital markets since May 2011, Cyprus applied for a bailout in June 2012 to avert the collapse of its banking sector and cover its financing needs. The €10 billion bailout agreed in March 2013 however featured the unprecedented bail-in of uninsured deposits coupled with capital controls which the plunged the economy into deep recession.