17/09/2018 10:11
Cyprus’ return to investment grade strengthens the country’s economic prospects and sends globally a positive message, Finance Minister Harris Georgiades said on Saturday.
Standard & Poor’s raised late on Friday Cyprus’ sovereign credit ratings to `BBB-/A-3` from `BB+/B` with stable outlook, after calling it “junk” for almost 7 years.
Speaking at the Finance Ministry in Nicosia, Georgiades said that the upgrade “vindicates the efforts of our compatriots and of the productive forces” of the country.
With the upgrade “we have achieved one of the main objectives of our economic policy” the Minister went on. He added that this confirms the progress that has been made over the last few years.
Georgiades went on to say that the decision of the credit rating agency also vindicates the “tough decisions” policymakers were called to make, particularly with regard to Co-operative banks.
According to S&P, the move to carve out the bad assets of the Co-ops, the country’s second largest lender, will pave the way for a significant reduction in the banking sector’s nonperforming assets, estimated at 34% of total loans by the end of 2018.
The Finance Minister noted that “in politics we must be prepared to take such decisions, that serve finally the public interest.”
We must continue with our effort, we must continue setting high goals and attain them, the Minister concluded.
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