FinMin praises banks progress and adaptation to modern technology

The progress of the banks and their adaptation to modern technology and international standards is remarkable, stressed Minister of Finance Constantinos Petrides, speaking in the Annual General Meeting of the Association of Cyprus Banks (ACB).

At the same time, Petrides said that efforts to get rid of the burden of non-performing loans (NPLs) in the banking system should be intensified.

"Achieving this goal will significantly improve the prospects of banks and their ability to finance businesses and households," he said.

According to an ACB press release, CEO of the Bank of Cyprus Panikos Nikolaou, took over over the chairmanship of the Board of Directors of the ACB as from Wednesday.

In his speech, the Minister of Finance also assured that the government, in the difficult conditions of the pandemic, expects the cooperation of everyone in order to form a favourable economic environment for economic activity, investment and entrepreneurship.

He said he was sure that the cooperation between the government and the association of banks will continue to be close and that together they will be able to give a sense of confidence to the market.

He added that COVID-19 pandemic has caused significant changes in economic behaviour that will inevitably have a negative impact on economic activity. He added that it was premature to predict with certainty the financial losses that will be recorded on an annual basis.

Petrides added that the government acted in timely and immediate manner, announcing a large support package for the economy, which included more than 60 measures with a cost of about €1.2 billion.

He also noted that the cooperation of the government and the banks was and continues to be close and effective in the implementation of specific schemes.

The Minister of Finance also said that the banks have invested the most in staff training and technology.

"The ability of Cypriot banks to offer financing with the lowest lending rates we have ever had is also remarkable, as well as the correct assessment of the borrower`s creditworthiness before any credit facility is granted," he concluded.

In his speech, outgoing President of the Association, Ioannis Matsis, said that ACB, in these difficult times, stood up to the circumstances and worked tirelessly to fulfil its role in the local economy.

He added that through the Association, the Cypriot Banks acted collectively and in a coordinated manner, guided by the health and financial interest of the whole country, and putting aside the individual interest of each Bank. He said that the priorities at that time were to protect the health of customers and staff, to provide uninterrupted services to citizens and to support the real economy.