Fitch upgrade positive but new growth model needed, says House President

Fitch upgrade positive but new growth model needed, says House President

House of Representatives President Yiannakis Omirou has welcomed the upgrade of the Cypriot economy by Fitch but warned that challenges remain and that a new comprehensive model for growth is necessary.

“The upgrade of the Cypriot economy by Fitch constitutes a positive development”, which has been achieved through the great sacrifice of fellow citizens, Omirou says in a written statement, released here today.

The upgrade will enhance Cyprus` effort to tap the markets but “problems remain and challenges are great”, he notes.

Referring to non performing loans, he points out that their percentage is still at a very high level. Resolving this matter while continuing to uphold social cohesion, Omirou says, will safeguard financial stability and will enable the economy to have access to funding.

Finding a solution to the NPLs will mean the return to stable and sustainable growth rates, he adds.

The House President also warns that “the effort to give a boost to the Cypriot economy and enhance social cohesion must be continuous.”

According to Omirou there is a need “to create a new comprehensive growth model.” In this regard, he refers to financial services, shipping, energy, tourism, construction, agriculture, research and innovation pointing out that with the right strategic planning these areas can constitute the pillars of economic recovery.

CNA/EPH/MM/2015
ENDS, CYPRUS NEWS AGENCY