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Banks-DISY worry for CY pound

10/12/2003 15:21
Banks and opposition party DISY, expressed today their concern about the impact of the proposed partical lifting of banking secrecy on the value of the Cyprus pound. After the meeting between the DISY representatives and the Chairman and General Manager of the Commercial Banks’ Association, Takis Pantziaris and Giorgos Hadjianastasiou, both sides agreed that the partial lifting of the banking secrecy could put pressure on the pound.

Mr. Pantziaris stated that the lifting of the banking secrecy will lead to the transfer of capital abroad and will affect negatively the value of the Cyprus pound, while DISY Deputy Chairman, Averof Neophytou agreed that a possible transfer of capital abroad will affect the Cyprus currency.

As regards to the adoption of specific measures to eliminate tax evasion, DISY and the Association agreed on the regulation of secret accounts and urged the government to offer incentives so as to avoid the transfer of capital abroad in view of the free transfer of currency.

Specifically, Mr. Neophytou praised the role of the commercial banks after 1974 and noted that the state must protect the prestige of the banking system. “Thousands of Cypriots managed to study with the banking loans and we should not be ungrateful”.

Invited to comment on the latest statements of the Finance Minister on the banking secrecy and the secret accounts, Mr. Pantziaris said that the banks are against tax evasion and comply with the laws of the state. “If the Parliament approves the bill, our ambition to make Cyprus an economic centre will fall apart”, he concluded.

Meanwhile, Chairman of the Council of Experts, Alexis Galanos stressed the need to hold a meeting on the issue and to focus on the impacts from the partial lifting of the banking secrecy.