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Banking system does not have direct exposure to events developing so far internationally

23/03/2023 16:01

Cyprus’ banking sector has significant liquidity and significant capital and does not have direct exposure to the events that have developed so far, Governor of Central Bank Constantinos Herodotou said on Thursday, following a meeting he had with DIKO President Nicholas Papadopoulos.

But he underlined that there is no complacency until calmness is restored in Europe and worldwide.

Herodotou noted that the latest developments show how important it is to have prudent policy both by the banks and by the supervisory authorities, so that resilience is built during the period of normality.

Regarding the borrowers and the NPLs Herodotou said that during the meeting with DIKO’s President he informed him that he discussed the issue with the Executive Directors of the Banks earlier this week and he raised the matter of timely and quick restructurings with the creditworthy borrowers.

The Governor said that this is beneficial for both the borrowers and the banks as well as the economy.

Herodotou said also that they discussed the inflation issue and the policy decisions by the European Central Bank and that he informed Papadopoulos about how good relations are now at the European level.