The island’s banking sector has suffered a shock but the worse is behind, Finance Minister Haris Georgiades said on Wednesday.
Addressing an international workshop in Nicosia on ‘Hydrocarbons and Sustainable Development in Cyprus and the Eastern Mediterranean Region’, he also said:
“Cyprus’ banking sector has exited the danger zone, it is now in the stability zone with the lifting of all restrictions to take place within the coming few months…The worse is behind us”.
In March, banks in Cyprus were shut for almost two weeks as the government negotiated a bailout of €10 billion euros to avert a national bankruptcy.
Cyprus became the first Eurozone country to impose losses on depositors.
The government is also correcting public finances without imposing additional taxes, he also said.
“The clear policy of the government is that we shall not be raising taxes further. A stable tax regime is very important for potential investors,” he added.
On the thorny issue of semi-governmental organizations, he said: “We are not dogmatic on the issue of privatization”.
He also said: “Decisions will be taken soon. Decisions this time have to be taken. With transparency and consensus wherever possible”.
Georgiades warned that there is no quick-fix solution to the problems of the economy but the positive first report by the island’s international lenders has sent a positive message to world markets.
The ministry is now putting the final touch on 2014’s annual budget which includes major cuts, he also said