Cyprus banking system not affected by economic crisis

President of the Republic of Cyprus, Demetris Christofias, has said that the world economic crisis has not affected Cyprus’ banking system.

Speaking at the informal European Council, which took place in Brussels, the Cypriot President noted that the world economic crisis continues to deteriorate, but said “the crisis has not affected the banking system of Cyprus”.

The Cypriot President referred to the measures adopted by the government to deal with the economic crisis, saying that ''the fiscal policy, which supports the sensitive fields of tourism and constructions, mostly affected by the crisis, will strengthen our economic development, taking into consideration the anticipated gradual reduction of interest rates''.

“Our efforts to deal with the crisis fall within the framework of an overall European effort for economic recovery”, he stressed.

President Christofias said that Cyprus supports a coordinated and united European voice on the issue.

Referring to employment, which is also affected by the crisis, the Cypriot President emphasized the need to strengthen the social dimension of the Lisbon Strategy and follow a more ambitious social policy.

“We have to take measures for the vulnerable social groups. At the same time, we have to address the social impact of the increased mass firings”, he said.

The EU leaders agreed that Europe must continue to act in a coordinated manner, by building confidence and promoting financial stability, getting the real economy back on track and by working together at the global level.