Finance Minister Harris Georgiades has stressed that the results of the stress tests on Cypriot Banks mark the final stabilization of the banking system which, in 2011-2013, was led on the brink of collapse, noting at the same time that public debt shows a downward trend for the first time in several years.
Speaking at a press conference at the Ministry of Finance, Georgiades said that the Cypriot banks, including the Cooperative sector, enter into Banking Union and the direct supervision of the European Central Bank with capital adequacy, enhanced supervisory and regulatory framework, new administrations and significant participation of foreign investors and especially with the ability to contribute to the recovery of the economy.
The Minister said that the challenges still remain and are related, inter alia, to addressing excessive lending of previous years and consequences of wrong policies and supervisory decisions of that particular period, adding that there is no room for complacency.
"Above all, there is no longer any room for irresponsible speculation in relation to our banking system. What we should do is to continue the effort at all levels with seriousness and confident, "he said.
He also said that " rating agencies` successive upgrades reflect the recorded correction of the economy. The recession has concluded its cycle, unemployment rate for the first time since 2008 records a decline and public finances are under control. "
"But we have still a long way to go and we have to continue having a sense of responsibility," he said.
Replying to a question, Georgiades said there is no timetable for the removal of remaining restrictions imposed in 2013, adding that "we will continue gradually until the complete removal of these restrictions”.
He also called on everyone both the government and the political parties to continue the efforts
in order to take the country out of tragic impasse. Minister also said that efforts should be directed towards dealing with the non-performing loans and lowering interest rates.
He concluded by saying that public debt shows a downward trend for the first time in several years.
