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Government pledges to maintain fiscal discipline as the economy enters new promising phase
The government remains committed to maintain fiscal discipline but also to continue promoting an ambitious reform agenda to enhance the competitiveness and the growth potential of our economy, Cyprus Minister of Finance Harris Georgiades said on Friday, 28 June.
Speaking to 4rth Cyprus International Investors Summit, Georgiades said that although the economy is advancing with a strong steady pace with rising asset prices and rising investment and consumption, Georgiades said the Government remains committed to maintain fiscal discipline but also to continue promoting an ambitious reform agenda in order to continuously enhance the competitiveness and the growth potential of our economy.
“This is exactly my parting message to you. That you should feel safe, you should feel welcomed and you should pursue the business and investment opportunities that Cyprus has to offer,” he said.
Georgiades gave an upbeat tone, noting that “the Cyprus economy has already entered a new promising phase.”
As he pointed out, the said that the productive base is gradually expanding into new sectors including Higher Education, Research and Innovation, offshore natural gas, renewables and investment fund management.
“And we know that there is a potential to lead the Cyprus economy even higher, so we should do more in terms of reform, we should invest more in technology and we should continue to promoting incentives for new business. I can assure you that this is exactly the plan of our government.”
On the banking sector, Georgiades said following the expansion in the decade, latest actions have included the strengthening of the legal framework and most notably the carving out of almost half of the Non/performing loans (NPLs) from the banking sector.
“So obviously a full cleanup of the balance sheets of the Cyprus banks can only happen gradually, but it is encouraging that a new credit is picking up and is of a much more improved quality,” he said.
Furthermore, the Finance Minister expressed concern over the rising instability and the escalated tensions to world trade, noting that Cyprus closely monitors the developments regarding Brexit.
Noting that a no-deal Brexit is not off the table, Georgiades said “we are not complacent about this prospect but at the same time we are not panicking either, feeling that the comparative advantages of our small open economy will dampen any downside.”
SOURCE: Gold News