Charilaos Stavrakis

Cyprus looks set to ride the storm of the global credit crunch, the government insisted yesterday [11th November]. Finance Minister Charilaos Stavrakis sought to demonstrate that both the economy and the state treasury could safely absorb the tremors from the financial crisis.  “In all honesty, we are in an envious position.  My fellow EU finance ministers would very much like their economy to fare as well as Cyprus’,” Stavrakis told newsmen.  Stavrakis conceded that foreign banks operating in Cyprus were raising their interest rates due to pressure from their parent organizations abroad to boost liquidity, and that this created a chain reaction in the local market.  He said the government would soon unveil an “action plan” to counter the effects of the global crisis, although with the core economy in good condition, “we shouldn’t expect anything dramatic.”

Copyright © Cyprus Mail 2008 – Printed 12th November

By Elias Hazou