Georgiades tipped for ‘European Finance Minister of the Year’
LONDON - The Financial Times newspaper has named Finance Minister Harris Georgiades ‘the hero of the hour’ noting that he ought to be the FT’s next European Finance Minister of the Year, following the successful implementation of the bailout programme.
In an FT article entitled ‘Cyprus scores well on economy but poorly on politics’, the prestigious publication notes that the good news is that the €10 billion emergency international rescue of Cyprus is working.
“The economic slump triggered by the collapse of the island’s inflated banking sector is less severe than first feared,” the paper said.
It is also stressed that “when Cyprus returns to economic growth, no one should be surprised if the island’s overall slump turns out to have been less disastrous than the slump in Greece between 2009 and 2013”.
On the other hand, the paper also makes references to high unemployment and non-performing loans, suggesting the formation of a ‘bad bank’ to take care of the troublesome loans.
“Still, the bigger point is that the island’s economy is healing. Not only tourism but professional sectors such as legal, accounting and consultancy services are resilient and even flourishing,” it added.
With regard to the island’s politics and geopolitics, the FT stressed that this is ‘bad news’ with particular references to the resignation of Central Bank governor Panicos Demetriades and the split in the coalition government.
In conclusion, the article questions Cyprus’ close ties with Russia “at a time when President Vladimir Putin has dismembered Ukraine”.