19/11/2002 08:52
Major issue of today’s financial press is the concerns of the CB Governor, Christodoulos Christodoulou, over the development of Cyprus economy, the prospects of the economic indices and the imminent dangers, as well as the policy adopted by the Authority of the financial system.
Mr. Christodoulou expressed his view before the Parliamentary Committee of Finance over the Annan plan, stressing that the peace plan contains obscure provisions and significant omissions over CB’s operational and administrative responsibilities.
The “Economy” inset of newspaper “Phileleftheros” under the titles “Christodoulou calls for austerity” and “Speculation over economy and inflation” deals with the remarks of the CB Governor before the Parliamentary Committee of Finance over the development of Cyprus economy. Specifically, Mr. Christodoulou said that although Cyprus economy has several negative aspects concerning budget deficit, inflation and balance of current accounts, it still compares favourably to the EU member states. In addition, Mr. Christodoulou expressed his concerns over the effects of the tax reform, which is expected to accelerate inflation to 4.5% for 2003. “The Central Bank cannot be prevented from further rate cuts by the current levels of inflation if this would boost economic activity”, Mr. Christodoulou said.
Elsewhere, the newspaper highlights that the Central Bank is to set up a new higher limit for house purchases abroad, investments in foreign Stock Exchanges and less restrictions in the use of credit cards abroad.
The “Economy” inset of newspaper “Simerini” under the title “Convergence with euro-interest rates” mentions that the Central Bank is expected to take decisions over policy issues in December, when ECB and CB will examine the issue thoroughly. According to Mr. Christodoulou, CB’s policy will probably adopt convergence that is to lead to further rate cuts. The basic Lombard rate in Cyprus is currently 5.5%, while ECB’s reaches 4.25%.
Elsewhere, the newspaper points out the gap between trade unions and employers in hotel industry has become even larger.
The “Economic” inset of newspaper “Alithia” under the title “CB to government: Reduce expenditure” refers to Mr. Christodoulou’ remarks for further reductions in expenditures that “are to be in favour of the consumers”. Mr. Christodoulou noted that all estimates for 2003 are to be repealed if America attacks Iraq, thus, he called for a new emergency plan.
Elsewhere, the newspaper quotes that during the first seven months of 2002 there is a significant slowdown in private consumption.
Mr. Christodoulou expressed his view before the Parliamentary Committee of Finance over the Annan plan, stressing that the peace plan contains obscure provisions and significant omissions over CB’s operational and administrative responsibilities.
The “Economy” inset of newspaper “Phileleftheros” under the titles “Christodoulou calls for austerity” and “Speculation over economy and inflation” deals with the remarks of the CB Governor before the Parliamentary Committee of Finance over the development of Cyprus economy. Specifically, Mr. Christodoulou said that although Cyprus economy has several negative aspects concerning budget deficit, inflation and balance of current accounts, it still compares favourably to the EU member states. In addition, Mr. Christodoulou expressed his concerns over the effects of the tax reform, which is expected to accelerate inflation to 4.5% for 2003. “The Central Bank cannot be prevented from further rate cuts by the current levels of inflation if this would boost economic activity”, Mr. Christodoulou said.
Elsewhere, the newspaper highlights that the Central Bank is to set up a new higher limit for house purchases abroad, investments in foreign Stock Exchanges and less restrictions in the use of credit cards abroad.
The “Economy” inset of newspaper “Simerini” under the title “Convergence with euro-interest rates” mentions that the Central Bank is expected to take decisions over policy issues in December, when ECB and CB will examine the issue thoroughly. According to Mr. Christodoulou, CB’s policy will probably adopt convergence that is to lead to further rate cuts. The basic Lombard rate in Cyprus is currently 5.5%, while ECB’s reaches 4.25%.
Elsewhere, the newspaper points out the gap between trade unions and employers in hotel industry has become even larger.
The “Economic” inset of newspaper “Alithia” under the title “CB to government: Reduce expenditure” refers to Mr. Christodoulou’ remarks for further reductions in expenditures that “are to be in favour of the consumers”. Mr. Christodoulou noted that all estimates for 2003 are to be repealed if America attacks Iraq, thus, he called for a new emergency plan.
Elsewhere, the newspaper quotes that during the first seven months of 2002 there is a significant slowdown in private consumption.
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