The level of non-performing loans (NPL), although significantly reduced, remains high and is a challenge that we should tackle in common, Cyprus President Nicos Anastasiades said on Tuesday, speaking at a swearing-in ceremony for the new Central Bank of Cyprus Governor Constantinos Herodotou.
On his part, the new CB Governor stated on his speech that the main concern would be to preserve the country’s financial stability and contribute in drafting economic and monetary policy in the Eurozone.
President Anastasiades, in his speech, send messages regarding the need to tackle the common challenge of NPLs and the effective supervision with a view to ensure financial stability.
“By various measures, take both from the Government and the Central Bank and as well as from the Banks, the level of NPLs has significantly decreased, although it remains high, making it a major challenge that we have to cope with”, President Anastasiades stressed.
President Anastasiades reiterated that the government’s main aim was to maintain growth and ensure the necessary conditions were created for it to be sustainable in the medium and long terms.
He also noted that this was a feasible objective under certain conditions relating to sustainable management of public finances, maintaining macroeconomic stability, the smooth operation of the financial system, and having a business-friendly environment to attract investment.
In addition, he stressed that competitiveness must be improved through reforms and new incentives, including tax breaks.
Referring to the reforms needed in areas including justice, health, and education, President Anastasiades stated that “our aim is none other than to meet the justified demands of the public for good governance, meritocracy, transparency, and most importantly, upgraded service”.
Anastasiades praised Herodotou’s academic training and his multifaceted scientific competence. “By taking on this highly honoured office of one of the leading institutions in our country, you are charged with a huge responsibility”, he said and added: “You should take it for granted my own support as the President of the Republic of Cyprus as well as of the involved parties”.
Herodotou stressed that he was fully aware of the heavy burden of responsibility he was undertaking, assuring at the same time that he would give his best in cooperation with the President of the Republic, the Government, the House of Representatives, the CBC Board of Governors, the European Central Bank and all relevant organizations, the technocratic and the politicians, the independent state officials and the CBC staff.
"I will always act within the CBC`s laws, regulations and procedures, as well as good administration, so that its prestige and dignity to be continually upgraded and always maintained at high levels both internally and abroad," Herodotou said.
He also stated that the main concern would be to preserve the country’s financial stability and contribute in drafting economic and monetary policy in the Eurozone.
Herodotou thanked the outgoing Governor Christalla Yiorkadji for the cooperation the last two years as a member of the Board of Directors of CBC and called upon Ptresident Anastasiades he stressed: “My purpose and goal will always be to add prestige, value and honour to the position to which you are appointing me, and not to draw from it”.