Christodoulos Patsalides was sworn in as Central Bank governor in a ceremony at the presidential palace on Tuesday morning.

Patsalides was sworn in by President Nikos Christodoulides and described his appointment as an “extraordinary honour”.

He promised to fulfil his duties to “the highest possible extent”.

“The bank’s reputation depends on the pillars of sustainable development that the government has put in place through surplus budgets, financial stability, and reforms, among other things,” Patsalides said.

Christodoulides said that “financial stability is a vital factor in promoting sustainable economic development and strengthening the competitiveness of our country”.

This, he said, must be done “by ensuring our credibility and the trust of both investors and consumers”.

He added that financial stability is “one of the three pillars of the government’s economic policy, alongside fiscal responsibility and continuous reforms”.

To this end, he said his government’s economic policy is “already bearing fruit”, with Cyprus’ credit rating being upgraded by all rating agencies, and macroeconomic performance “significantly better than the European average”.

“At the same time, we are moving forward with a plan and timetables for the implementation of the necessary bold reforms in all areas which impact the social and economic live of our country, such as the environment, justice, the beginning of a debate on tax reform, health, and children,” he said.

“The goal is to strengthen the competitiveness of our economy and carry out successful green and digital transitions, through a human-centred approach to our policies which will substantially upgrade ordinary people’s standard of living.”

He said these policies will enhance social cohesion, with a focus on the middle class, which throughout the course of history has been the backbone of the Cypriot economy and society.

He described the Central Bank as an organisation critical to the financial stability of Cyprus, and, consequently, to economic stability and progress.

“You are invited to succeed in the extremely complex and difficult task of effective supervision and ensuring financial stability,”  the president told Patsalides.

“You are called upon to do so amid difficult geopolitical developments which have resulted in a rapid increase in interest rates internationally, causing uncertainty and instability at a regional and international level,” he said.

He also said that Patsalidis will be tasked with forming a “new corporate governance model” for the bank, and backed him to succeed.

Additionally, he thanked outgoing governor Constantinos Herodotou for the “important work he has done” both at the Central Bank and on the board of directors of the European Central Bank.

“During his tenure, among other things, he further armoured our financial system, while he deservedly represented Cyprus in international and European organisations, upgrading the prestige of the Central Bank and, by extension, the reputation of our country,” he said.