By Stelios Orphanides
Cyprus and other euro area governments have not yet discussed collective action to manage a Greece’s withdrawal from the euro area, also known as Grexit, as the very word remains a taboo, a finance ministry official said, adding that Central Bank of Cyprus had already taken steps to prevent a spillover.
“There is not much we can do,” to protect against a Grexit, the finance ministry official who was not authorised to discuss the matter said on condition of anonymity. “The issue is limited to the subsidiaries of Greek banks in Cyprus. It is not a responsibility of the finance ministry but of the ECB and Central Bank of Cyprus. Precautionary measures have been taken and therefore no particular problems should be expected “in ensuring they remain liquid”.