Former minister says government should ‘be modest’ over economy boost

Former Finance Minister Constantinos Petrides on Saturday urged the current government to “modestly read the reasons” for the upgrade of Cyprus’ credit score by Moody’s.

He added that the upgrade is “confirmation of the correct policies followed in recent years.”

He said Moody’s, the investment service which upgraded Cyprus’ credit rating, “refers to the prudent fiscal management and the correct policies to deal with the pandemic as well as the recent crisis with Russia’s invasion of Ukraine.”

He also said Cyprus’ economic resilience “is not accidental but is the result of reforms in all sectors and structural changes.”

In addition, he said policies aimed at attracting foreign investment, development projects, as well as the promotion of private investment strengthened Cyprus’ potential growth rate, all of which were based in actions of the previous government.

He added that the upgrade is based on “proper management of public debt, the issuance of long-term bonds to lengthen the average maturity, and the maintenance of sufficient cash reserves to meet challenges.

“Our correct decision to significantly increase the state’s cash reserves during the outbreak of the pandemic and to proceed in a coordinated manner to address the risks and subsequently put debt on a downward path and the economy at a high growth rate has been vindicated,” he said.

He added that “the achievements of our economy should not be taken for granted and we must remain committed to fiscal and financial stability, the path of reforms and the promotion of policies for growth and social cohesion because only in this way we will achieve a steady improvement in people’s standard of living.”