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We are entering the phase of recovery, says finance minister

Finance Minister Constantinos Petrides

The message that we are entering the phase of recovery was given on Tuesday by the Minister of Finance, Konstantinos Petridis.

He said the first signs after the partial lifting of restrictions were very positive for the market, and expressed confidence that “we will emerge victorious from this uncertain battle.”
Petridis spoke after the meeting of the President Nikos Anastasiadis, with representatives of the financial institutions, at the Presidential Palace, in which he participated.

Afterwards, Ioannis Matsis, President of the Cyprus Banking Association and CEO of Hellenic Bank said: “Banks have both the will and the liquidity and the capital adequacy to support the economy.”

There was a very constructive discussion, Petridis said, adding that we are moving to the second phase, the recovery phase “and the government and the banking sector will contribute with the means they have in this direction.” He added that economic conditions have improved since April.
According to the finance minister, the government’s plans will be used by the banking sector as well. The rate of interest rate subsidy is a very important measure for both the business world and young couples who want to get loans, he added.

“It is a very important help and what we said today is that, yes, going through this second phase with the changes and the psychology of the world markets. The banks are participating, and are explaining the rapid procedures; They will do what they have to do.

He also said that the growth that we have had in recent years has given both the economy and the private sector strength to come through. “Of course, we will know more in the near future, but it seems that the government’s measures have acted as a catalyst,” he added.

Matsis had an equally optimistic perspective.
“We consider the measures to be very good, as well as the measures to strengthen lending such as subsidising interest rates and providing government guarantees to the European Investment Bank in existing programs, which we believe will give banks more opportunities to lend, but also other support measures which we see very positively, such as the subsidy at airports, the advertising plan with travel agents, the reduction of VAT.”

“It is in the interest of all of us, both banks and society and the economy, to move forward with lending and liquidity,” he said, adding: “We must always judge and evaluate customers as viable. We believe that the plans announced by the government will bring increased volume, which will help a lot.”

He noted that since the beginning of the easing of restrictive measures “we have seen the economy grow quite rapidly as we monitor through the use of credit and debit cards, etc.

“So things are looking better now than we expected in April and we are very optimistic,” he added.

“It is in the interest of all of us, both banks and society and the economy, to move forward with lending and liquidity,” he said, adding: “We must always judge and evaluate customers as viable. We believe that the plans announced by the government will bring increased volume, which will help a lot.”



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