Cyprus News - General

New Central Bank's Governor statements

“Nothing should be excluded if it is beneficial and not at the expense of the economy”, said the new Central Bank Governor Panicos Demetriades, when asked about the possibility of accession of Cyprus to the European Support Mechanism. Mr. Dimitriadis met with the President of the Democratic Rally Nicos Anastasiadis, who stressed that the effort to support the Cyprus banking system is unconditional; he also stressed that there must be fiscal discipline on the Govermen’s part as well. When asked if the information he received from Mr Anastasiadis is encouraging and that Cyprus can avoid the EU support mechanism, Mr Demetriades said that the issue is very thin, adding that '' we cannot' rule out anything”. “Whatever is going to be done must be done for the good of the economy for the benefit of the banking system,'' he said. He noted that he understands the concerns and that the possible accession to the mechanism may mean diversifying the tax regime of Cyprus, Mr Dimitriadis pointed out, however, that countries like Ireland have received support from the EU, while maintaining their tax status.

'' I think in general we must be calm and cool to deal with all the problems in the best possible way. We should not rule out anything if it can benefit us but not at the expense of the economy,'' Mr. Anastasiadis said he found the support by Jean-Claude Juncker very positive. Moreover Mr. Anastasiadis said'' we want to maintain the independence of the Central Bank and we want the Governor to know that we are always ready to support him on his decisions and help him perform his duties in the best possible manner ''. '' I am confident that the training and qualifications of the new Governor will help and contribute in full compliance in a dialogue that at times may be required to succeed in the role and his work,'' he said.

On his part, Mr. Demetriades said he assured the President of the Rally that the Central Bank will cooperate with all political parties for the good of the economy and for the good of the country and that there will always be an excellent cooperation between the two parties. He also noted that'' on our side we will defend the independence of the office of the Central Bank and expect all political parties will respect this institution for the good of the country for the good of the economy and the welfare of all citizens of Cyprus.''