President: Economic adjustment programme on track despite delay in the 5th review

President: Economic adjustment programme on track despite delay in the 5th review

President Nicos Anastasiades has said that despite the delay in the conclusion of the 5th review of Cyprus` economic adjustment programme, due to the suspension by the parliament of the implementation of the foreclosures bill, “we remain on track”.

“We remain committed to the implementation of the programme, which provides for the institutional establishment of those tools that will allow the banking system to operate properly and to remain sound,”, he said, adding that “we will continue this difficult and demanding effort which bears fruit.”

Addressing on Friday evening the inauguration ceremony of the renovated premises of the Limassol Co-operative Savings Society administration offices, Anastasiades expressed his satisfaction over the Co-op`s recent initiatives to reduce interest rates on loans, something which encourages, as he noted, competition, eases financial burdens on households and businesses and contributes to the establishment of conditions for a more rapid return to growth.

“We are determined to proceed with the implementation of a series of bold amendments, aiming at further developing international competitiveness in our country and establishing a positive and friendly environment for businesses and investments, which in turn will create more jobs, something which is a priority of our economic policy,” the President pointed out.

Noting that the economy is on the track of full recovery, Anastasiades said that “Cyprus returned to the international markets much earlier than predicted even by the most optimistic analysts, and our international lenders have recognised the continuous improvements of the economy.”

Anastasiades expressed his appreciation for the work of the Co-operative Movement in Cyprus and his personal wish for members of the Co-operative Credit Institutions to regain the ownership of the Institutions.

He noted that Co-operative Credit Institutions hold 30% of the loans and 44% of the deposits, something which shows the respect of the local society to the Co-operative Movement.

Following severe banking and fiscal crises in March 2013, Cyprus was forced to agree to the terms of a €10 bn bailout loan by the troika (the European Commission, the European Central Bank and the International Monetary Fund), which included a €1.5 bn recapitalisation package for the Co-ops in exchange for their consolidation and restructuring.

The Co-operative sector was nationalised as the government injected €1.5 billion from the bailout funds to cover its capital needs.