Cyprus pound will not be devalued once in eurozone

Cyprus President Tassos Papadopoulos said that all economic indicators suggest that there will be no devaluation of the Cyprus pound when the country adopts the euro, as expected in January 2008.
“All indications are against any suggestion of a devaluation. There is no such question,” he told foreign media correspondents, stressing that the objective is to join the euro and not sacrifice the social state and social grants.
Speaking at a lunch hosted by CNA for foreign media correspondents, he noted that the Cyprus pound is stronger than the euro in the past two years and dismissed the idea of postponing joining the euro, explaining that this is not something one does when it wants as conditions may not be right at another time.
On recent developments in the banking sector, he said in a globalised world, the government has no way to control takeover bids nor can it get involved in such bids.
“There is very little the government can do to prevent these developments,” he said in response to questions about takeover bids, noting that there are independent authorities that will examine these developments and ensure compliance with the law.
He said free movement of capital and people are in place in Cyprus, being an EU member, and added that the Central Bank and the Competition Commission, as well as the shareholders are those who will decide on any such matter involving takeover bids.
The Central Bank and the Commission are to ensure compliance with the law, he noted.
Questioned on the prospect of exploration and exploitation of possible hydrocarbon reserves and oil reserves, he said there is very good cooperation on the matter with Egypt on the matter.
Responding to questions, he said the Cabinet has approved the legal framework to safeguard Cyprus’ interests in this respect and it is hoped that the House of Representatives will soon approve that.
He said the area to be explored is divided into sites and international bids will be invited to do the work.
Asked about the issue of visas to Russian nationals, since Cyprus as an EU member has to comply with European regulations, the President explained that Nicosia is considering a pre-visa arrangement to facilitate procedures.
He said he discussed this issue with Russian President Vladimir Putin and said it was important for the local economy to help remove procedural difficulties.
“We have taken good measures within the limits that the EU allows us,” he told journalists.