Bank CEOs to evaluate Christodoulides’ recommendations and meet again on 18 December

President Nikos Christodoulides has shared recommendations with the CEO of the Bank of Cyprus, Panicos Nicolaou, and the CEO of the Hellenic Bank, Michalis Louis after meeting with them the Presidential Palace.

After the 16 December meeting, Government Spokesperson Konstantinos Letymbiotis told reporters that "it was a meeting that took place after the completion of the cycle of assessments by all international Rating Agencies that now rate our country at investment grade A."

"This is proof of the correctness of the Government's economic policy. It is a practical vote of confidence and is, of course, the result of the collective effort of the Government and the Cypriot people," he added.

According to Letymbiotis, "the developments are such that they allow actions to be taken that can, on the part of the banks, act as a relief for reliable borrowers, and to act in favour of specific groups of our population."

The President of the Republic, he continued, conveyed his views, proposals, and suggestions to the CEOs of the Bank of Cyprus and the Hellenic Bank, particularly on issues concerning interest rates and charges, with emphasis, of course, on reliable borrowers, with emphasis on specific groups of the population, whom can put at the center.

"The Government has announced many plans and programmes either to support households or for housing," he added, noting that "the next meeting with the President of the Republic has already been scheduled for Wednesday, 18 December, at 8am, where the Minister of Finance will of course also be present, so that the specific suggestions can be discussed, after being evaluated by the CEOs of the Bank of Cyprus and Hellenic Bank."

Asked whether the President’s suggestions and proposals will be evaluated and the banks will return to the next meeting, the Spokesperson said that "what has been set as the basic philosophy is the potential that banks can have, always in accordance with developments, always in accordance with the course of the Cypriot economy, for specific focus of our population, and also for the actions that can be taken.

We will not prejudge any actions or decisions. A very useful, constructive exchange of views has taken place today and we believe that this dialogue must remain active and lively and substantial and, above all, constructive.

The reason why today we can proudly say that our country is in investment grade A is precisely because through a very responsible and prudent policy we managed to ensure financial stability, the stability of the banking sector, which of course contributed to the upgrading of this Cypriot economy.

And it is through this responsible policy, through this responsible dialogue, that we always aim to bring about this improvement in the real economy, which is of course households and citizens."

Asked whether the banks have expressed their intention to expand proposals and suggestions for easing the cost of lending to socially vulnerable groups of the population, the Spokesperson said that "there is also the meeting on Wednesday, which follows today's, where I imagine an evaluation will be made. This is what is responsible, I think this is what we all expect. Let's be a little patient until the next meeting."

When asked whether at Wednesday's meeting the Government will request greater cooperation with the banking sector, in relation to the plans promoted by the government, such as to relieve vulnerable groups or young couples, the Spokesperson said that "already, last week we saw some such actions, precisely, recognising the correctness of the plans, especially with regard to the groups that these plans aim to support. Some such actions have already been taken.

"We all have a common goal. The goal cannot be other than the progress and prosperity of the entire Cypriot people. Therefore, this synergy, this willingness to cooperate must be intensified and we are now in a position to have this discussion after many years of collective effort, to achieve this stability, of which we are today in a position to be proud and which the entire Cypriot people must enjoy," he added.

Asked whether the new economic upgrade entails new support measures, the Spokesperson said that "this has already been done. Now we can talk in numbers. The support packages, the Government's packages of measures to support households, amount to over €700 million."

"Without these being included in the grant plans that have been announced by the Government, whether they concern housing policy or the installation of renewable energy sources or urban planning incentives or the diversification of the subsidy policy, the modernisation of this subsidy policy that the Government has advanced in the last 20 months," he continued.

However, the Government Spokesperson pointed out, "yes, these upgrades are not just something theoretical. The upgrades of the Cypriot economy have a direct and indirect impact and will have a direct and indirect impact on both households and citizens. This is the goal. In order for this prosperity to be possible for citizens, a necessary condition is the stability of the Cypriot economy, it is the upward trajectory of the Cypriot economy and this trajectory remains steadily upward. And we are not the ones saying this. This is what all the international Rating Houses are now saying."

In response to a journalist's remark that banks are private businesses, supervised by the European Central Bank and that their policy cannot be taken for granted, the Spokesperson said that "we are fully aware, which is why we have said that it is an exchange of views. The President of the Republic conveyed his own views and those of the Government. It is now up to them, the bankers, the banks, to examine and evaluate these proposals and others of course, as they have done in the past. But I think that this dialogue must be constructive and must be ongoing. I think we all have the same goal and the goal is stability and the rise of the Cypriot economy. And this concerns a collective effort."

"We have experienced in the very recent past the negative consequences of this dialogue not being constructive, of measures not being taken with a responsible, prudent political compass. This suffering has become a lesson, especially for our country, these last ten years. It was ten years of collective progress that we want to maintain and not only maintain, but accelerate, so that this can also be experienced in Cypriot households," he concluded.

Also read: Tripartite meeting at the Presidential Palace with interest rates on the agenda

(Source: InBusinessNews)