CBC: We can face future with optimism

“The results are particularly positive for the Cypriot economy, since they demonstrate that the actions taken during 2014 and all the efforts and actions for boosting the banking sector were more than satisfactory” Georghadji said during a press conference after the publication of the pan-European stress tests.

The results of the assessment “will contribute to strengthening depositors` trust in Cypriot credit institutions, which in turn will be able to contribute to the effort for economic growth”, she pointed out.

The Central Bank Governor also said that strengthening trust is expected create the right conditions in order to lift remaining capital controls in Cyprus.

According to Georgadji it is important that the reserve of €1 billion provided for in Cyprus` international bailout, intended for covering capital needs of the Cypriot banking system will not be used..

This means, she continued, that public debt will be €1 billion less than what has been projected based on the Memorandum of Agreement (MoU) the basis of Cyprus` bailout.

Three Cypriot banks completed with a capital surplus the European Central Bank`s comprehensive assessment, whereas one bank completed the exercise with a manageable shortfall.

According to ECB results, Cyprus Cooperative Central Bank recorded a surplus of €331 million, Bank of Cyprus registered a surplus of €81 million, whereas RCB completed the exercise with a surplus of €112 million.

Hellenic Bank registered a capital shortfall of €176 million. However the Bank announced that it had made further mitigating factors amounting to €71 reducing the overall capital shortfall to €105.