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Georghadji: Confidence in the Cypriot banking system can be restored

12 March, 2014

Newly-appointed Governor of the Central Bank of Cyprus Chrystalla Georghadji said she is sure that confidence in the island`s troubled banking system can be restored.

Georghadji had on Wednesday her first tête-à-tête meeting with outgoing CBC Governor Panicos Demetriades, who resigned on Monday.

In statements following the meeting, Georghadji said she will have meetings with Demetriades, the CBC Board and other associates at the bank so that by April 11 when she officially assumes her duties she will be fully informed about the issues concerning the banking sector.

Replying to questions, Georghadji said the biggest challenge is to restore confidence in the economy and mainly in the banking system.

Confidence in the Cypriot banking system received a shattering blow last March when Cyprus agreed with the European Commission, the European Central Bank and the IMF on a €10 billion bailout featuring an unprecedented haircut on deposits over €100,000 to recapatlise the island`s largest bank, Bank of Cyprus, which absorbed Laiki Bank, the island second largest bank which will be liquidated.

"I am convinced we will manage to restore back confidence in the banking sector," she said, adding she will hold briefings daily to prepare for her new job.

Responding to a question, Georghadji said she will cooperate with the CBC Board of Directors and her associates at the CBC. "This is not a one-man job, it involves many people. This establishment is entitled to have the credibility and the confidence it had all those years," she went on to say.

Replying to a question that she will be the first female Central Banker in the Euro area and the ECB, Georghadji said this does not change anything. "The ECB will simply be enriched with a female presence," she concluded.