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17 June, 2024
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Central Bank Governor: Sanctions' impact on economy not significant so far

''The President of the Republic told me that this is an opportunity for our country to clear its name.''

The Governor of the Central Bank of Cyprus, Constantinos Herodotou, was received on Friday morning (21/04) by the President of the Republic, Nicos Christodoulides. After the meeting, Mr. Herodotou said the following: "The meeting between the Governor and the President of the Republic is institutionalized because, by law, the Central Bank is also responsible for the financial stability of the country. We had also agreed with the President that all economic issues should be updated and discussed on a frequent basis. So, we discussed various issues, such as non-performing loans, inflation, interest rates, and of course, sanctions."

When asked about the sanctions and whether we are expecting a new list from London and Washington, Herodotou said, "We have no information as the Central Bank. As announced already, the banks of Cyprus have directly applied the sanctions that came out recently, as well as previous sanctions, because it is important to be lawful with European and other relevant legislation. I just want to say that the President of the Republic told me that this is also an opportunity for our country to show goodwill but also to clear and improve the name of Cyprus. The Central Bank has always acted in a way that would enhance both the stability and ownership of the country's banking sector."

When asked if the sanctions will have an impact on the economy, he noted that "so far, at the level of the country's economy, they will not have a significant impact. I cannot make a prediction about what future sanctions may arise to give an opinion on future impact." On whether there is a risk of deposit outflows following the closure of the Russian accounts, Herodotou said, "Not at all. Our banks have very satisfactory levels of capital and one of the best liquidity levels in the European Union. Also, the closing of some customers' accounts does not affect the bank or any other customer of the bank at all."

[This article was translated from its Greek original]

Cyprus  |  banks  |  economy  |  sanctions

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