Stavrakis ready to soften blow in Cyprus from credit crisis

Finance Minister Charilaos Stavrakis said he may introduce new measures if the turmoil in global capital markets continues, but at the same time he assured the public that state finances will remain in positive so that workers and lower income classes are not seriously affected if the Cypriot economy suffers the consequences of the international credit crisis.

Stavrakis also said that fair financial demands would be met, adding that “in some sectors of the Cypriot economy, such as real estate and construction, things have slowed down.”

Referring to a meeting he had on Tuesday with Central Bank Governor Athanasios Orphanides, Stavrakis said they had a very useful discussion, during which they reviewed international developments and the Cypriot banking system, which he said was “very robust.”

“Cypriot banks are currently in a very strong position, which helps towards maintaining Cyprus as a financial and services centre,” he said.
Replying to questions, Stavrakis said that “so far Europe has not been severely affected. However, if this crisis continues, Europe and Cyprus will be affected.”

“For the time being, the rate of growth of the Cypriot economy is very satisfactory,” he said, adding that measures should be taken to reduce the risks.