11/07/2003 15:16
CB Governor, Christodoulos Christodoulou said on Friday that the decline in unproductive expenditure, the increase in revenues and an ambitious development process will enable the Cyprus economy to put an end to the prevailing economic crisis. Mr. Christodoulou said that the depreciation of the Cyprus pound is out of the question and urged the Cyprus citizens to ignore such rumours.
Mr. Christodoulou stressed that that the government will not change its policy as to the Cyprus accession in the EMU and the eurozone.
Following the meeting of the Monetary Policy Committee, the CB Governor said that miscalculations and unrealistic estimates are the weakest links for the Cyprus economy and stressed that economy needs responsible and sensible behaviour.
“There is a need to drop unproductive expenditure, increase revenues and create a strong and ambitious development process”, the CB Governor reiterated.
The Cyprus pound will be depreciated, Americans say
Mr. Christodoulou said that the Cyprus pound is stable and its fluctuation has proved that the exchange rate with the basic currencies and especially the euro is justifiable, commenting on latest information that American officials in Cyprus have urged their friends to buy land, due to the “imminent depreciation of the Cyprus pound”.
Mr. Christodoulou has urged the Cyprus citizens to ignore such rumours, as “they do not serve their interests”.
EMU – Eurozone
Mr. Christodoulou stressed that the timetable for Cyprus’ accession in the EMU and the eurozone has not changed and assured that President Papadopoulos and the Finance Minister, Marcos Kyprianou will follow the same policy.
“Following the island’s full accession in the EU on May 1, 2004, we will request the accession in the EMU and the eurozone on January 1, 2007”, Mr. Christodoulou added.
Responding on the question whether the Cyprus economy will be ready to bear the “shock” from the island’s full accession in the EU, Mr. Christodoulou said that the economy is ready - more than any of the 10 acceding countries – to deal with the competition and the demands of the EU.
Interest rates
The CB Governor said that the MPC’ s decision to leave the interest rates unchanged is attributable to the few prospects of recession in the international economy, Cyprus’ high inflation and fiscal deficit and the slowdown of economic activity.
The Lombard and Overnight Deposit Facility interest rates have remained unchanged at 4.5% and 2.5% respectively, while the reference value of the annual growth rate of the bank credit remained at 11%.
Mr. Christodoulou stressed that that the government will not change its policy as to the Cyprus accession in the EMU and the eurozone.
Following the meeting of the Monetary Policy Committee, the CB Governor said that miscalculations and unrealistic estimates are the weakest links for the Cyprus economy and stressed that economy needs responsible and sensible behaviour.
“There is a need to drop unproductive expenditure, increase revenues and create a strong and ambitious development process”, the CB Governor reiterated.
The Cyprus pound will be depreciated, Americans say
Mr. Christodoulou said that the Cyprus pound is stable and its fluctuation has proved that the exchange rate with the basic currencies and especially the euro is justifiable, commenting on latest information that American officials in Cyprus have urged their friends to buy land, due to the “imminent depreciation of the Cyprus pound”.
Mr. Christodoulou has urged the Cyprus citizens to ignore such rumours, as “they do not serve their interests”.
EMU – Eurozone
Mr. Christodoulou stressed that the timetable for Cyprus’ accession in the EMU and the eurozone has not changed and assured that President Papadopoulos and the Finance Minister, Marcos Kyprianou will follow the same policy.
“Following the island’s full accession in the EU on May 1, 2004, we will request the accession in the EMU and the eurozone on January 1, 2007”, Mr. Christodoulou added.
Responding on the question whether the Cyprus economy will be ready to bear the “shock” from the island’s full accession in the EU, Mr. Christodoulou said that the economy is ready - more than any of the 10 acceding countries – to deal with the competition and the demands of the EU.
Interest rates
The CB Governor said that the MPC’ s decision to leave the interest rates unchanged is attributable to the few prospects of recession in the international economy, Cyprus’ high inflation and fiscal deficit and the slowdown of economic activity.
The Lombard and Overnight Deposit Facility interest rates have remained unchanged at 4.5% and 2.5% respectively, while the reference value of the annual growth rate of the bank credit remained at 11%.