Cyprus enters new period in dealing with bank problems

Cyprus is entering a new period in dealing with the difficulties of its banking sector, Government Spokesman Christos Stylianides said here on Thursday, commenting on the outcome of a Frankfurt meeting, between Cyprus President and the President of the ECB, on Wednesday.

The message this meeting has sent is that Cyprus can pull through the difficulties and give new perspective to its banking sector, Stylianides added.

The Government Spokesman said that President Nicos Anastasiades ensured that cooperation with the ECB will be constant, in order to overcome practical difficulties that may arise during the implementation of the loan agreement, Cyprus has signed with its international lenders.

He reiterated that Cyprus may exit faster the Memorandum of Understanding by implementing the loan agreement faithfully, as was the case in Ireland.

President Nicos Anastasiades and President of the European Central Bank (ECB) Mario Draghi agreed on Wednesday that in the period ahead, one priority is to bring Bank of Cyprus (BoC) out of resolution.

A press release, issued by the ECB on yesterday’s meeting in Frankfurt between Anastasiades and Draghi, said that the asset valuation is expected for the second half of July, and the discussions will continue when these results are available. It added that the meeting between the Cypriot President and the President of the ECB consisted of an exchange of views on the on-going implementation of the macroeconomic adjustment programme in Cyprus.

President Anastasiades was accompanied by Harris Georgiades, Finance Minister and Panicos Demetriades, Governor of Central Bank of Cyprus. Jörg Asmussen and Benoît Cœuré, Executive Board members of the ECB also participated in the meeting.