06/04/2023 13:36
Finance Minister Makis Keravnos expressed on Thursday the view that there will be a more balanced situation regarding inflation by the end of the year, following a meeting with European Central Bank chief economist Philip Lane. He added that there does not seem to be any particular concern about an increase in non-performing loans in Cypriot banks.
In his statements after the meeting, at the Ministry, Keravnos said there was a very productive exchange of views on issues that concern not only Cyprus but also the whole of the EU, such as inflation, interest rate increases and the causes of this situation in the economy.
"I listened with great interest to Lane's views on how things can develop and I think that patience and an optimistic outlook is needed," he added.
Asked if he had received an update on how things would play out by the end of the year, the minister said that based on what he had discussed with the ECB official, there was an optimistic view that by the end of the year there would be a more balanced situation with regard to inflation.
Asked whether he had shared with Lane his thoughts on measures to support the lower economic strata in terms of interest rate increases, as well as non-performing loans and forced auctions, the Minister replied that the ECB economist is aware of the problems of the Cypriot economy, as well as the efforts the Government is making, always in consultation with the Central Bank, to alleviate problems that plague the economy and society.
Asked whether there is an intention to follow the model of the plan announced by the Greek Finance Minister, Keravnos said the intention is for the Ministry to move not exactly along the same model but on the basis of the thoughts of his Greek counterpart, with whom he said he also met in Brussels.
"We are also making similar considerations and we are working on various tools to deal with this situation," the minister noted, adding that from his contacts so far with bank management and administration representatives, there does not seem to be any particular concern about an increase in non-performing loans because the banks themselves are implementing mechanisms and measures to avoid this. "You understand that nobody would like to see an increase in bad loans," he concluded.